When do the installed items by a tenant become real property?

The correct understanding of when installed items by a tenant become real property is linked to the expiration of the lease. Typically, when a tenant installs fixtures or improvements—such as shelving, lighting, or other alterations—these items may initially be considered personal property. However, once the lease expires, those improvements often become part of the real estate and are retained by the landlord instead of being removed by the tenant.

This situation can stem from the legal doctrine of fixtures, which holds that items permanently affixed to the property are classified as real property. Therefore, once the tenant no longer has a legal right to occupy the space, the ownership of any installed items typically transfers to the landlord. Understanding this principle is crucial for both tenants and landlords when considering modifications to rental properties.