What is a periodic estate?

A periodic estate is a type of leasehold estate that automatically renews at the end of each term until either the landlord or tenant takes action to terminate it. This means that the lease continues indefinitely, typically on a month-to-month or year-to-year basis, depending on the specific terms agreed upon by the parties involved.

This automatic renewal feature is what distinguishes a periodic estate from other types of leasehold estates, such as those that are fixed in duration, where the term does not renew without an explicit agreement or action from the parties. The flexibility of a periodic estate allows tenants and landlords to maintain a rental agreement without the need for constant renegotiation, as it continues until one party formally decides to end it.

In addition to its automatic renewal aspect, a periodic estate can apply to a variety of properties, both residential and commercial, which further highlights its broad applicability in leasing arrangements.