If a tenant has a lease that automatically renews, this is considered what type of lease?

A lease that automatically renews is referred to as a renewal lease. This type of lease is characterized by its clause or provision that allows the lease to continue beyond its initial term without requiring the parties to renegotiate the terms or sign a new agreement. Typically, renewal leases may specify a certain condition or time frame under which they will renew, making it crucial for both the landlord and tenant to understand their obligations and rights as the renewal period approaches.

While other types of leases might share similarities, they serve different purposes. A fixed-term lease typically spans a set period with no automatic renewal unless otherwise specified. A month-to-month lease operates differently as it can be terminated or altered with minimal notice but does not inherently imply renewal under its original terms. An automatic lease, while it suggests a potential similarity to renewal leases, is not a commonly recognized term in the context of leasing agreements and thus does not accurately define the arrangement in question.