What Does Tenancy Mean?
A tenancy is an agreement in which the owner of real property leases it to a renter in a legally binding contract. The person who owns the property is known as the landlord, and the person who rents it is known as the tenant. In most tenancies, the tenant must pay the landlord a certain amount of money over a period of time in order to retain exclusive use of the property. It is important to note that a landlord's insurance policy typically does not cover the tenant's personal property. Renter's insurance covers the gap and often includes other protections, such as liability coverage.
Insuranceopedia Explains Tenancy
There are a number of reasons why a tenancy may be arranged. A person may be looking for an apartment to rent or a business could need office space. In addition, land can also be leased in a tenancy as well. For instance, the owner of gold-bearing ground in the Yukon may lease the land to a mining company in exchange for a percentage of the gold extracted by the company. A lease can be short term, such as a few months, and sometimes, it can go on for a longer period of time, such as years, or even decades.