One of the fundamental aspects of real estate ownership is the lease or “leasehold” in English. Depending on the conditions and durations, there are different types of leases. In this article, we will break down the main types of leases and provide you with practical examples for each of them.

1. Estate for years

• Duration: It is established for a specific and determined duration as agreed in the lease contract.
• Characteristics: This type of lease expires automatically at the end of the established term, without prior notice.
• Example: Marta rents an apartment to spend her vacation during the summer, from July 1 to August 31. Once August ends, the contract automatically ends.

2. Periodic

• Duration: It is automatically renewed each time the landlord accepts payment of rent.
• Characteristics: If the landlord continues to accept payment of rent, this type of lease can be renewed indefinitely, unless either party decides to terminate it.
• Example: Carlos rents a studio and pays the rent on the first day of each month. Although the initial contract was for six months, he has continued paying and the landlord has accepted, so the contract is automatically renewed each month.

3. Estate at will

• Duration: This lease is for an indefinite period and is subject to the payment of rent.
• Characteristics: Although it has no specific end date, it can be canceled by either party with prior notice.
• Example: Raquel rents an apartment without a set period of time. You can continue living there as long as both parties agree. If you decide to move or the landlord decides to rent to someone else, you simply need to let each other know in advance.

4. Estate at sufferance

• Duration: There is no specific agreement, and the tenant remains in the property against the landlord's will.
• Characteristics: This type of lease occurs when the tenant does not vacate the property after the term of their original lease has expired and there is no new agreement between the parties.
• Example: Jaime had a one-year lease that ended on December 31st. However, he did not move and has not signed a new contract. Although you continue to pay rent, you are in the property without the landlord's clear consent.

Conclusion

Leases are vital agreements in the real estate world that determine the relationship between the landlord and the tenant. It is essential to understand the different types of leases to ensure that both parties are aware of their rights and obligations. The examples provided here will help you better visualize each situation and make informed decisions in your future real estate deals.