Collecting Holdover Rent

Q: If the original lease doesn’t include a section regarding holdover rents, can the owner still collect an increased rent from the holdover tenant?

A: Many states, though not all, have laws that allow landlords to charge holdover rents even if the lease is silent on the matter. Check your state’s laws to determine if a holdover rent can be charged.

Holdover rents are applicable from the time the tenant’s lease ends until the tenant vacates the space. Holdover rents generally range from 200 to 300 percent of the tenant’s rent under the original lease, a very significant increase.

If you can charge your tenant a holdover rent, promptly send the tenant the bill for the amount. If you delay, the tenant can refuse to pay the rent, arguing you waived your rights to collect the holdover rent. Furthermore, the tenant’s refusal to pay based on that argument could be upheld in court.