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Contract Glossary

Holdover Tenant

Definition

A tenant who stays in a rental property after their lease expires without signing a new agreement. The landlord can either accept rent and create a month-to-month tenancy, or begin eviction proceedings. The tenant's legal status depends on whether the landlord consents to their continued occupancy.

In Practice

Your commercial lease expires on December 31. You haven't signed a renewal but you're still negotiating terms. You stay in the space and keep paying rent. If your landlord cashes the January check, you're likely a holdover tenant on a month-to-month basis — at the original lease terms. But many commercial leases include holdover penalties: 150% of the previous rent is common. If your lease has a holdover clause, you could owe significantly more than your standard rent for every month you stay past expiration.

Example Clause

If Tenant remains in possession of the Premises after the expiration or termination of this Lease without the written consent of Landlord, Tenant shall be deemed a holdover tenant and shall pay monthly rent equal to one hundred fifty percent (150%) of the then-current monthly rent.

Common in these contract types

Frequently asked questions about holdover tenant

It depends on the jurisdiction and the landlord's response. If the landlord accepts rent, the holdover tenant typically gets the same rights as a month-to-month tenant — including the right to proper notice before eviction (usually 30 days). If the landlord doesn't accept rent and objects to the holdover, the tenant may be treated as a trespasser and evicted more quickly.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.