Which type of lease allows a tenant to occupy property indefinitely until notice is given?

Prepare for the Arizona Property Management Test. Utilize flashcards and multiple-choice questions, complete with hints and explanations. Ace your exam!

A month-to-month lease allows a tenant to occupy the property on a continuous basis until either party provides notice to terminate the agreement. This type of lease provides flexibility for both the landlord and tenant, as it does not have a predetermined end date. Instead, tenancy continues on a monthly basis, requiring that either the tenant or landlord give notice—typically 30 days—if they wish to end the arrangement.

In contrast, a fixed-term lease establishes a specific duration for the tenancy, such as a year, and remains binding until the end of that term unless both parties agree otherwise. A sublease involves a primary tenant allowing another person to occupy the rented property, usually under the original lease terms, and does not inherently grant indefinite residence. An annual lease combines elements of a fixed-term lease as it specifies a lease period of one year, which also does not provide the same level of flexibility as a month-to-month arrangement.

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