A holdover tenant refers to a renter who remains in a property after the expiration of the lease. If the Landlord continues to accept rent payments, the holdover tenant can continue to legally occupy the property, and state laws and court rulings determine the length of the holdover tenant’s new rental term. If the Landlord does not accept further rent payments, the tenant is considered to be trespassing, and if he does not promptly move out, an eviction may be necessary.

The No Right to Holdover states that the Lessee has no right to remain in possession of the Premises beyond the Expiration Date or termination of the Lease. Sometimes tenants interpret this section as a month-to-month tenancy (a tenancy that is cancellable by either Party within 30 days written notice). This is not the case. Should the Lessee remain in possession, the Base Rent will be increase by 150% of the monthly Base Rent, payable immediately prior to the holdover. The increase in Base Rent is intended to discourage tenants form holding over. In addition, it is advised that Lessors are careful when accepting rent on or around the Expiration Date of the Lease. If a Lessee submits a check for Rent for the following month after the Expiration Date and the Lessor accepts it, then a month-to-month tenancy has been created and the Lessor cannot terminate the Lease without putting in a 30 days written notice.

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