What is Holdover Tenancy?

Thu, Sep 23, 2021 at 10:50AM

What is Holdover Tenancy?

Holdover tenancy is when a tenant does not move out as scheduled. As a Professional Property Management Company, you eventually see just about everything. Sometimes a tenant breaks the lease and sometimes they stay even though the lease has terminated.

In Florida you are not required to give any notice that the lease is terminating and the tenant is not required to tell you they are departing. The contract to lease is just being fulfilled. Sometimes life gets interesting and you find out a tenant is still residing in the property.

The courts will likely prefer to see that the landlord or property manager has gone the extra mile. That means giving notice that the tenant is expected to vacate before the end of the lease not the day after. This can be called a notice of non-renewal.

What Happens Next?

In theory a tenant may owe you double rent for each day that they stay past the expiration date of the lease. The lease you use may or may not address these situations unless you use a Property Management Company with experience. There are many landlords which manage their own properties who have no idea how to address this situation.

A Brief Example.

If this happens to a private landlord, they should consult an attorney. First review the lease and make sure you were not supposed to give notice. If you were not supposed to give notice do not accept any payment from the tenant as you will be changing the situation to a periodic lease. Only accept payment if another lease is signed or after they have moved out. You may well end up having to start the eviction process.

There are so many types of leases and so many laws pertaining to leases, deposits and accepting first and last month’s rent it is incredible. This is just one of the many reasons property managers and property management companies exist. If you have found yourself in this position as a landlord without professional assistance, get some immediately. You may find out your tenant is a professional tenant, has done their research and knows all about holdover tenancy.

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