National Real Estate Exam (PSI)Leasing and Property ManagementHard
A landlord has a tenant whose lease expired three months ago, but the tenant continues to occupy the property and pay rent, which the landlord accepts without a new written agreement. This situation is BEST described as a(n):
- ATenancy at sufferance
- BTenancy at will
- CPeriodic tenancy
- DEstate for years
Show answer & explanationAnswer & explanation
Correct answer: C. Periodic tenancy
When a tenant remains in possession after a lease expires and the landlord accepts rent, a periodic tenancy (e.g., month-to-month) is typically created by implication, as both parties' actions indicate a continuing agreement on a period-by-period basis.
Why the other options are wrong
- A. Tenancy at sufferance occurs when a tenant stays without the landlord's permission, which is not the case here since rent is accepted.
- B. Tenancy at will has no definite period and can be terminated by either party with proper notice, but it doesn't arise from a holdover with accepted rent.
- D. An estate for years has a definite beginning and end date, which has already expired in this scenario.
Holdover Tenant & Periodic Tenancy
When a tenant remains in possession after the lease expires, and the landlord accepts rent, a new periodic tenancy (e.g., month-to-month) is often created by implication.
- Differs from tenancy at sufferance (no landlord consent).
- Can be terminated by either party with proper notice.
- Implied agreement based on actions, not a new formal lease.
Memory trick: PERIODICALLY, the landlord accepts rent and the lease continues.