When a person wishes to rent a property, he or she usually enters into a rental agreement with the landlord of the property. However, different types of rental agreements exist depending on how long the person wishes to rent the property. Thus, a periodic tenancy refers to a rental arrangement between a tenant and a landlord wherein the tenant occupies the property on a periodic basis.
A periodic basis is defined as a week-to-week, month-to-month, or year-to-year arrangement. It is also possible for a landlord and a tenant to agree on a completely different time period of tenancy. Because the rental of the property is set on a periodic basis, it is most likely that the rental arrangement continues on an indefinite time period since no formal termination is set or provided.
Commercial or residential properties can adopt a periodic tenancy. The most common case for periodic tenancy is when a tenant’s formal lease has ended and he or she wishes to continue to rent the property. This is usually referred to as an implied periodic tenancy. It is also possible for a periodic tenancy to be formalized into a written document.
An advantage of periodic tenancy is that the landlord and tenant can end the tenancy on short notice. The proper termination notice is given by either party, usually one full period before the termination is expected to take effect. For example, if the periodic tenancy is on a monthly basis, termination notice must be given a month before the effective date.