While a lease is more common, a short-term lease between the lessor and the tenant may be preferred for a number of reasons. A „holdover“ clause is a kind of automatic extension. According to the law, if a tenant stays on the land with the agreement of the landowner, he creates a lease, usually from one month to the next. The landowner can change the conditions of this type of rental, usually with a period of thirty days or sixty days. Either the landowner or the tenant can terminate this type of rental agreement with the same period. These clauses are the opposite of options. An option gives a party the right to renew the lease, usually the tenant. If the tenant does not use the option, the lease expires with its original term. In the case of an automatic renewal clause, either the tenant or the landowner must terminate to prevent the lease from being renewed.
The termination must be made in writing and inform the tenant of the automatic extension of the lease. The termination must be served in person or by registered letter at least fifteen days, but not more than 30 days before the date on which the tenant must terminate an intention to terminate. „If neither the landowner nor the tenant announces the non-renewal, the lease is renewed. Often, the lease is of the same duration, which can be five, ten or twenty years. Other automatic renewal clauses extend the lease from year to year. Below is an example of a state law dealing with automatic renewal clauses: failure to read or understand this clause is not a defense, especially in a business situation. (For residential tenancy agreements, a law requires that a notification of automatic renewal clauses be clearly displayed just before the tenant is signed.) The general rule in Ohio is that any real estate lease is subject to transfer law. R.C 5301.01. In essence, for each real estate lease, the lessor must both sign the lease and have the lease notarized certified. If this is not the case, the duration of the lease is not valid.
In 2019, Mobile Telecommunications Network (MTN) launched a subscription-based mobile phone service in South Africa. The service was a 1 MB mobile data tariff, automatically renewed, which calculated consumers „40c per megabyte whenever they ran out of data.“ Subsequently, it was pointed out that this was simply another form of non-bundle data usage plan. Due to consumer reaction, the company was forced to withdraw its data tariff.  The terms rental and lease are often used synonymously, but are very different. Leases offer more flexibility for landlords and tenants, leases offer more stability….