In a fixed-term rental agreement, what happens if the tenancy becomes automatic after the end of the term?

In a fixed-term rental agreement, what happens if the tenancy becomes automatic after the end of the term?

• A. The rent can be increased immediately
• B. The tenant must provide a 30-day notice
• C. It becomes a month-to-month tenancy
• D. The landlord must sign a new contract

Answer: (C)

In a fixed-term rental agreement, when the tenancy automatically continues beyond the agreed-upon term without a new contract in place, it typically converts to a month-to-month tenancy. This transition occurs because, under rental law, if neither party takes action to terminate the agreement or establish a new one, the relationship continues under the same conditions, but now on a month-to-month basis. This arrangement allows for greater flexibility; either the landlord or the tenant can terminate the tenancy with proper notice, which commonly is 30 days, but remains rhythmic according to the tenancy-agreed terms. The conversion to month-to-month acknowledges the continuation of occupancy and rent payment without the necessity of formally renewing a fixed-term contract. This understanding is key for both landlords and tenants, as it affects notice requirements, rental price adjustments, and other leasing terms going forward.

In a fixed-term rental agreement, when the tenancy automatically continues beyond the agreed-upon term without a new contract in place, it typically converts to a month-to-month tenancy. This transition occurs because, under rental law, if neither party takes action to terminate the agreement or establish a new one, the relationship continues under the same conditions, but now on a month-to-month basis.

This arrangement allows for greater flexibility; either the landlord or the tenant can terminate the tenancy with proper notice, which commonly is 30 days, but remains rhythmic according to the tenancy-agreed terms. The conversion to month-to-month acknowledges the continuation of occupancy and rent payment without the necessity of formally renewing a fixed-term contract.

This understanding is key for both landlords and tenants, as it affects notice requirements, rental price adjustments, and other leasing terms going forward.