Final answer:
In Texas, a leasehold that automatically renews and involves a possessory interest is a periodic tenancy, which continues until a 30-day written notice to terminate is provided by either party.
Step-by-step explanation:
In Texas, the type of leasehold that involves a possessory interest that is automatically renewed at the end of each period specified in the lease is known as a periodic tenancy.
A periodic tenancy continues from period to period (e.g., month to month) until either the landlord or the tenant gives notice to terminate, typically requiring a 30-day written notice. This type of leasehold estate does not have a definite end date but persists until proper notice is given by either party. Upon termination of the lease, the tenant must vacate the premises, removing all belongings and returning any property (such as keys) that was furnished by the owner.
If the tenant holds over or does not completely vacate the property by the termination date, they may be liable for additional rent and damages, including potential losses incurred by the owner due to inability to rent to new tenants.