In Practice
A fixed-term lease locks in a start date, an end date and a rent for that stretch of time. The 12-month lease is the most common version, but 6, 9, 15 and 18 months are common too.
For you, it means predictable income and a known end date to plan renewals around. For the resident, it means rent cannot normally rise mid-term and the lease cannot be ended early without following its terms. Either side can usually only leave early through a lease break clause, a buyout, or a legal protection that state or federal law provides.
Example: you lease a unit for 14 months to land the end date in a stronger leasing season. The rent for that term is priced to match, based on your own market data.
The common mistake is not tracking end dates. Leases that quietly roll into holdover or month-to-month status can cost you rent growth and control. Run an expiration report each month, start renewal conversations early, and follow your state's notice rules.
Knowing your expiration pattern is a real career skill. Owners notice when a manager can say, without checking, how many leases end in each of the next six months and what the plan is for each.
Not to Be Confused With
A fixed-term lease has a set end date. A month-to-month lease renews each month until someone gives proper notice.
Fixed-Term Lease: Common Questions
What is a fixed-term lease?
It is a lease with a set start and end date, usually 6 to 18 months, where rent and terms are locked for that period.
Fixed-term lease vs month-to-month: which is better?
A fixed term gives stability to both sides. Month-to-month gives flexibility but less predictable income and a higher chance of turnover.
What happens when a fixed-term lease ends?
The resident renews, moves out, or stays on as a holdover or month-to-month tenant depending on the lease and state law.
