Continued possession after expiration creates a tenancy at sufferance. Commercial leases typically impose holdover rent at a substantial premium, frequently one hundred fifty to two hundred percent of the prior rate.
Landlord acceptance of rent may create a new tenancy.
Alternative Names:
Holdover|Tenant at Sufferance
Why it Matters?
Accepting rent from a holdover can create a periodic tenancy that requires statutory notice to terminate, which converts a simple possession action into a longer process. Accepting payment expressly as use and occupancy rather than rent preserves the landlord's position. Holdover premium provisions are enforced as agreed between commercial parties, though extreme multiples may face penalty analysis.
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Frequently asked questions
What does accepting rent create?
How is that avoided?
