Holdover explained
Don't sign blind.
A holdover clause sets what you pay if you stay in the unit past the end of the lease term. Holdover rent of 150% of base is common; 200% or more is aggressive. State variation matters.
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What it usually means
A holdover clause defines the rent and terms if a tenant remains in possession after the lease end date. Some leases convert to month-to-month; others impose a holdover rent multiplier (e.g., 150%, 200%) to push the tenant to leave.
Why it matters before signing
Even a short holdover at 200% can compound quickly in commercial leases. In residential, state default rules may govern if the lease is silent. In commercial, the holdover penalty is mostly contractual.
State variation matters (residential)
Holdover rules vary by state. Tex. Prop. Code Ch. 92 provides default rules in Texas. In several states, a tenant who pays rent and is accepted by the landlord after lease end converts to month-to-month at the prior rent unless the lease says otherwise.
What to ask before signing
- What is the holdover rent multiplier? Is it 150%, 200%, or higher?
- Does holdover include all CAM, taxes, and pass-throughs at the elevated rate?
- Is there a notice or grace period before holdover rent kicks in?
How Dang catches it
Dang's residential and commercial lease engines flag holdover above 150% as MEDIUM, above 200% as HIGH. Rate plus pass-throughs both factor into the finding.
Frequently asked questions
What is a "holdover" tenancy?
When the tenant remains in possession after the lease end date without a new written agreement.
Is 200% holdover rent reasonable?
Common in commercial leases as a push-out mechanism. In residential, courts may scrutinize.
What if my lease is silent on holdover?
State default rules generally apply. Most states convert to month-to-month at the prior rent.
Sources & further reading
- Tex. Prop. Code Ch. 92 · Texas Property Code Ch. 92
- Cornell LII · holdover tenant
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English. For consequential decisions, consult a licensed attorney in your state.