Holdover Clause
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FAQ
Which of the following is TRUE about a holdover tenant? The landlord must accept additional rent if the tenant remains on the premises.
For example, a typical hold-over clause may simply state that if the tenant holds over after the expiration of the lease term, the tenancy becomes a month-to-month tenancy at the increased rental rate.
During the holding over period, although the lease has expired, the terms are still in effect. This means the tenant has to meet all the obligations of their lease, including maintaining the premises and making all payments, including rent, unless there is a written agreement to vary the terms of the lease.
A holdover clause is a provision in a lease agreement that allows the landlord to charge a higher rent or take other actions if the tenant stays beyond the lease term without renewing or terminating the contract. This clause can help the landlord protect their property rights and avoid losing income from a vacant unit.
Holdover tenant refers to a renter staying in the property after their lease terminates without signing a new lease. In this situation, the landlord may take steps to remove the tenant from the property or bind the tenant to a new lease.
Sample holdover clause in a real estate agreement During such tenancy, Tenant shall be bound by all of the terms, covenants, and conditions mentioned herein, except Basic Rent, which shall be one hundred fifty percent (150 percent ) of the Basic Rent due before the term's expiration.
One of the most important clauses to negotiate in a commercial real estate lease is the holdover clause, sometimes called the holdover provision or the holdover rent clause.
