A tenant who remains in occupancy after their lease term expires without executing a new lease. Holdover periods are typically governed by the original lease or state law and can expose both parties to significant financial risk.
Holdover provisions in leases often convert the holdover period to a month-to-month tenancy at 150–200% of the last applicable rent. CAM obligations typically continue during holdover on the same terms as the expired lease.
A tenant occupied a space for 60 days past lease expiration while finalizing their new location. The lease's holdover provision converted this to a new 12-month term at 150% rent. The tenant owed $180,000 in additional rent and CAM for a term they never intended.
Plan your move-out date at least 90 days before lease expiration. Give formal written notice of non-renewal within any required notice window. Even one day of holdover can trigger costly consequences.
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Start Free AuditThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.