Lease glossary

Fixed-term lease

A fixed-term lease is a lease with set start and end dates, most often 12 months, during which the rent and terms are locked unless the lease itself allows a change. Neither side can end it early without a legal reason or a clause that allows it, and it ends on its end date unless it renews.

Also called term lease

Example

A lease runs from September 1, 2026 to August 31, 2027 at $1,700 a month: 12 payments totalling $20,400. The landlord cannot raise the rent in March unless the lease has an escalation clause. A tenant who leaves in March may owe rent until the unit is re-let or the term ends, although many states require the landlord to make a reasonable effort to find a new tenant rather than let the rent pile up.

In a lease it looks like…

The term of this Lease is twelve months, beginning September 1, 2026 and ending at 11:59 p.m. on August 31, 2027. Tenant shall pay rent of $1,700.00 per month, due on the first day of each month.

Good to know

The end of the term is the part to read closely. Some leases turn into a month-to-month tenancy, some renew for a whole new term unless someone gives notice by a deadline, and some simply end, with holdover rent charged after the last day.

Plain English, not legal advice. Last reviewed September 29, 2026.