Before creating a lease agreement, landlords need to decide whether they want the lease to end on a set date or not.
A lease with a predetermined end date, usually called a fixed term lease, is when the tenant agrees to rent the property for a certain period of time at a fixed price. This type of lease uses calendar dates to specify the start and end of the lease. At the end of a fixed term lease, the landlord and tenant can sign a new lease with updated dates and information or move on.
A lease without an end date, usually called a periodic tenancy or automatic renewal lease, is when the lease automatically renews after a certain duration (for instance, every month, six months, or year). With this type of lease, the landlord and tenant rent until one party provides appropriate notice signifying they want the lease to end.
Both types of leases carry their own advantages and disadvantages, depending on the situation in which they are used.