Ace the Michigan Real Estate Salesperson Exam 2026 – Unlock Your Future in Real Estate!

A fixed-term lease grants a tenant the right to occupy a property for a specified duration, which can span months or years. This arrangement establishes a clear end date for the tenancy, which is agreed upon by both the landlord and the tenant at the outset of the lease. This structured approach provides stability for both parties, as the tenant can plan for the duration of their stay while the landlord is assured of rental income for that predetermined period.

In contrast, periodic tenancy refers to an arrangement that automatically renews at the end of each period (usually month-to-month), making it less defined in terms of the end date. Tenancy at will is an informal agreement without a set end date, allowing tenants to stay indefinitely until either party decides to terminate. A month-to-month lease, while also providing ongoing tenancy, does not specify a fixed term but rather renews with each month, lacking the definitive length associated with a fixed-term lease. Therefore, "fixed-term lease" is the correct option that specifically describes an occupancy arrangement for a defined period.