When tenants occupy a property without a formal lease, what type of tenancy is it considered?

When tenants occupy a property without a formal lease, it is considered a tenancy at will. This type of tenancy allows the tenant to occupy the property with the permission of the landlord without a specific duration or defined lease agreement. A tenancy at will can be terminated by either party at any time, provided appropriate notice is given. It essentially implies a more informal arrangement where the tenant has occupation rights as long as the landlord consents to their presence.

The other choices present different types of occupancy arrangements that involve more formal agreements or specific terms. A leasehold estate typically requires a legal agreement that outlines the terms and duration of the tenancy. A monthly rental agreement usually specifies payment terms and can imply a more formalized arrangement than a tenancy at will. Periodic tenancy involves agreements that automatically renew at specified intervals, often requiring advance notice for termination, which does not apply to informal, non-lease based arrangements. Thus, tenancy at will accurately describes the situation of tenants occupying property without a formal lease.