Holdover – it is a term that can be defined as when the tenant continues to occupy the space leased after the lease has come to an end. When the lease is over, the tenant may be classified as a trespasser, but in some states, the law will protect the resident, allowing for month-to-month residency, in which case, rent can be raised along with a 30-day notice to quit that can be submitted by either party.
However, this is not always a guarantee. Commercial leases have strong legal force, and contracts typically specify what would happen should holdovers occur. Before signing a lease, it is important that you discuss the contract with an M&A attorney in Miami to gain the utmost clarity and have a plan of action should anything like holdovers occur.
Typically, landlords will charge one and a half times the monthly rent in a holdover period. When there is no contractual agreement in place, year-to-year residency may take place. However, no matter the situation, commercial tenants are liable for the rent accrued in a holdover period.
If landlords choose to use self-help eviction methods (locking tenants out of the property, moving the tenants’ belongings, turning off utilities, etc.), there could be a hefty legal price to pay. If you are a landlord and are experiencing a holdover, always seek the legal guidance of a corporate law firm in Miami before making any moves.
Terms of each commercial lease will be able to set the parameters for holdovers, including penalties to be determined for holdover tenants.