A leasehold estate, also called a less-than-freehold estate, gives a tenant a possessory interest in property under a rental arrangement. It does not give the tenant the landlord’s ownership estate. Whether the tenant may assign or sublease that interest depends on the agreement and applicable law.
There are four main types of leasehold estates, each having specific characteristics as to the lease period and the relationship between the landlord and tenant.
- Fixed term tenancy or estate for years
- Periodic tenancy
- Estate at will
- Estate at sufferance
1. Fixed Term Tenancy or Estate For Years
An estate for years has a fixed duration and a specified ending date. It may last days, weeks, or months; the name does not require a term of several years. For general exam purposes, the term expires on the agreed date. In practice, the agreement and applicable law may impose notice, renewal, or other requirements; expiration does not authorize a landlord to remove an occupant without the required legal process.
2. Periodic Tenancy
A periodic tenancy renews for successive rental periods until properly terminated. Month-to-month is a common example. Identify the recurring period, rather than relying only on whether the agreement is written. Applicable notice and termination requirements must be followed.
3. Estate at Will
In general exam terminology, an estate at will is consensual occupancy for an indefinite duration without a fixed term or agreed recurring rental period. Either party may end it subject to applicable notice and other legal requirements. It does not mean the tenant can be required to leave immediately.
State terminology varies. The Massachusetts Attorney General’s guide also uses tenancy-at-will for month-to-month arrangements, which may be oral or written. Follow the specified jurisdiction for state-specific exam questions.
4. Estate at Sufferance
An estate at sufferance arises when a tenant who entered lawfully remains after the right to possession ends, without the landlord’s consent. If the landlord consents to continued occupancy or accepts rent, a different tenancy may arise under applicable law. For example, California Civil Code section 1945 provides a renewal presumption when a tenant holds over and the landlord accepts rent.
For more, check out our article on freehold estates.
