Tenancy

What Does Tenancy Mean?

A tenancy is a legally binding agreement in which the owner of a property, known as the landlord, leases it to a renter, referred to as the tenant. Under this agreement, the tenant pays the landlord a specified amount of money over a set period to retain exclusive use of the property. It’s important to note that a landlord’s insurance policy generally does not cover the tenant’s personal belongings. To address this gap, renters are encouraged to obtain renter’s insurance, which typically includes personal property protection and liability coverage.

Insuranceopedia Explains Tenancy

Tenancies can be arranged for various reasons. An individual might seek an apartment to rent, a business may require office space, or land can be leased for specific purposes. For example, the owner of gold-bearing land in the Yukon might lease the property to a mining company in exchange for a percentage of the gold extracted. Leases can range in duration, from short-term agreements lasting a few months to long-term arrangements spanning years or even decades.