What type of estate do tenants who rent or lease property hold?

Tenants who rent or lease property hold a less-than-freehold estate. This term refers to the rights that a tenant has to occupy and use a property while not owning it outright. In a less-than-freehold estate, the tenant does not have full ownership rights, but rather a temporary right to use the property based on the terms specified in a lease agreement.

This type of estate is characterized by a specified duration, which can range from a month-to-month rental agreement to a long-term lease. The relationship and obligations between the landlord and the tenant are governed by the lease, which establishes the conditions under which the tenant can occupy the property. As such, tenants have a possessory interest but not the full rights that come with ownership.

Other types of estates mentioned are distinct from a less-than-freehold estate. Freehold estates, such as fee simple estates and life estates, imply ownership and an indefinite duration, in contrast to the temporary nature of a lease. A freehold estate grants the owner full rights to the property, which tenants do not possess. A life estate provides rights that last for the duration of a person’s life, again emphasizing ownership rather than the leasing arrangement typical of less-than-freehold estates.