Which of the following is a characteristic of a lease?

A lease is a legally binding contract that defines the relationship between a landlord and tenant, often involving the rental of property. One of the defining characteristics of a lease is that it typically has a specified duration, which can range from several months to several years. This defines the length of time the tenant has the right to occupy the property under agreed-upon terms.

The established time frame of a lease means that it provides security and predictability for both parties; tenants know they can stay for the duration of the lease, while landlords have assurance that a tenant will occupy the property for a set period. This formality contrasts with more flexible rental agreements, such as month-to-month leases, which can change more frequently and often allow for termination with shorter notice.

The other answer choices represent inaccuracies regarding leases: some leases are difficult to terminate before the agreed-upon period without penalties, not all leases are informal agreements, and while month-to-month arrangements exist, they do not define the essence of a lease which is usually for a longer fixed period.