Illinois Leasing Agent Practice Exam

What type of tenancy begins with a specific start date and then continues on a month-to-month basis?

1. Fixed-term tenancy

2. Periodic tenancy

3. Holdover tenancy

4. Month-to-month tenancy

The correct answer is: Periodic tenancy

The type of tenancy that begins with a specific start date and continues on a month-to-month basis is known as periodic tenancy. This arrangement allows the lease to automatically renew at the end of each period (usually each month) unless either party provides notice to terminate. A periodic tenancy is characterized by its flexibility and ease of termination, as it provides tenants and landlords with a clear understanding of their rights and obligations on a rolling basis. This contrasts with fixed-term tenancy, which is set for a defined duration, such as one year, and does not automatically renew. The term "month-to-month tenancy" typically describes a periodic tenancy specifically on a monthly basis, but the broader and more accurate description is "periodic tenancy," since it encompasses any lease duration that operates on a recurring basis. The holdover tenancy refers more to situations where a tenant remains on the premises after the lease has expired without the landlord's consent. Understanding these distinctions is essential in rental agreements and tenant rights.