Tenancies for years are leaseholds which continue for a set period of time. For example, if you sign a lease for twelve months, or one year, you have a present possessory interest in the premises for that fixed period of time. The landlord from whom you are renting has a future interest in that when that fixed period of time is up, the property reverts back to the landlord.

A tenancy for years will likely be created through a written lease, especially if the specific period of time is more than one year. You do not, however, have to terminate the leasehold with a written document. Once you reach the end of the fixed period of time set forth in the lease, your leasehold interest will terminate automatically.

Let’s use a hypothetical to illustrate a tenancy for years. After college, you move to a new city and find an apartment complex that you really like. You walk into their office, and you agree to sign a lease indicating that your move-in date will be August 1st, and your move-out date will be July 31st of the following year. This is a tenancy for years because you have an interest in the property for a fixed period of time—specifically one year. On July 31st of the following year, absent a new lease agreement, your interest in the premises will automatically terminate, and it will revert back to your landlord.

It is important to know that there are certain situations in which your interest could be terminated prior to the contracted date. If, for example, you breach one of the covenants in your lease (e.g. you have dogs in your apartment and the lease specifically says no animals are to be on the premises), your landlord could terminate the lease early. In fact, in most states in the U.S., a landlord may terminate your lease if you fail to pay your rent on time. As a tenant, you could also terminate the lease earlier than the fixed period of time you initially contracted for. Let’s say you get a new job, and you have to relocate prior to the termination date on your lease. You can surrender your lease, and if your landlord accepts, then your lease will terminate. In most situations, landlords will allow you to do this; however, the majority of landlords will require you to pay an early termination fee (and this should be spelled out in your lease agreement).

Next, let’s discuss periodic tenancies.