What distinguishes a fixed-term lease from a month-to-month lease?

A fixed-term lease is characterized by a specific duration, which means it has a predetermined start and end date, such as a one-year or two-year lease. This allows both the landlord and tenant to have clarity regarding the length of occupancy. Once the fixed term ends, the lease must be either renewed or terminated, depending on the agreement of both parties. In contrast, a month-to-month lease provides flexibility, as it automatically renews each month. This type of lease allows tenants to terminate the agreement with advance notice, typically 30 days, without any long-term commitment. The distinction lies in the structure and renewal processes of the leases, where the fixed-term lease requires a specific commitment, and the month-to-month lease allows for more fluid tenancy arrangements.