Holdover is a term that refers to when a tenant keeps using the space they have leased after their lease has expired. When the lease expires, the tenant might be considered to be a trespasser, but in some states, the law will protect the resident, allowing for month-to-month residency. In this case, the rent may be increased and a 30-day notice to leave may be given by either party.
This is not always a given, though. Commercial leases are legally binding, and contracts typically state what would happen if there were any holdovers. You should consult an M&A Attorney in Miami before signing a lease to ensure that the terms are completely understood and that you have a backup plan in case something unusual like holdovers happens.
In a holdover period, landlords typically charge 1.5 times the monthly rent. Year-to-year residency is possible if there is no written contract in place. Commercial tenants are nevertheless always responsible for the rent that accrued during a holdover period.
Landlords may incur significant legal costs if they opt to use self-help eviction techniques (locking tenants out, moving the tenants’ belongings, cutting off utilities, etc.). Before taking any action, always seek the legal advice of a corporate law firm in Miami if you are a landlord dealing with a holdover.
The conditions for holdovers, including any penalties for holdover tenants, can be outlined in the terms of each commercial lease.
Alvarez & Diaz-Silveira LLP is a corporate law firm in Miami, focusing on international and domestic M&A, finance, real estate and corporate immigration. If you or your business needs legal advice, contact an M&A Attorney in Miami for help.