A fixed-term lease is a rental agreement that lasts for a specific period, usually ranging from six months to a year. During this time, the tenant agrees to pay rent and follow the terms set by the landlord. This type of lease provides stability for both parties, as the tenant knows they can stay for the agreed duration, while the landlord has guaranteed income. At the end of the fixed term, the lease may either be renewed or allowed to expire. If the tenant wishes to leave early, they may face penalties, depending on the terms outlined in the lease agreement.