Legal Definitions - holdover tenancy

A holdover tenancy occurs when a tenant continues to occupy a property after their lease or rental agreement has officially expired, without the explicit consent of the landlord. This situation arises when the agreed-upon term for occupancy has ended, but the tenant has not vacated the premises.

Even though the original lease has concluded, a holdover tenant is generally still obligated to pay rent according to the terms of the expired agreement. A landlord may accept these rent payments without necessarily agreeing to the tenant's continued occupancy, thus preserving their right to seek eviction. If the tenant does not leave voluntarily, the landlord can initiate legal proceedings, such as issuing a formal notice to vacate and, if necessary, filing an unlawful detainer (eviction) lawsuit to regain possession of the property.

Here are some examples to illustrate a holdover tenancy:

• Example 1 (Residential - Lease Expiration):

  Maria's one-year apartment lease officially ended on June 30th. She had planned to move to a new city but experienced unexpected delays in securing her new job, preventing her from moving out by the lease end date. She remained in her current apartment throughout July without having signed a new lease or received explicit permission from her landlord to stay longer.

  Explanation: Maria is a holdover tenant because her original lease term expired, and she continues to occupy the apartment without her landlord's agreement. She is still responsible for paying July's rent, but the landlord has the right to initiate eviction proceedings to regain possession of the property.

• Example 2 (Commercial - Unfinalized Renewal):

  The "Bright Ideas Bookstore" had a five-year commercial lease for its retail space, which expired on September 30th. The owner, Mr. Henderson, had been negotiating a renewal with the property management company for several months, but the new lease agreement was not finalized and signed by the expiration date. Mr. Henderson continued to operate his bookstore in October, assuming the new lease would eventually be approved.

  Explanation: Mr. Henderson's bookstore is in a holdover tenancy. The original lease term has ended, and while a new agreement is anticipated, there is no current, active lease allowing him to legally occupy the space. He must continue paying rent, but the landlord could still demand he vacate the premises if the new lease falls through or if they decide not to renew.

• Example 3 (Residential - Non-renewal Notice Ignored):

  Sarah was renting a house on a month-to-month basis. Her landlord provided her with a proper 30-day notice, as required by law, stating that her tenancy would terminate on August 31st and she needed to vacate the property. Despite receiving this notice, Sarah did not move out and remained in the house throughout September.

  Explanation: Sarah is a holdover tenant because her tenancy was explicitly terminated by the landlord's non-renewal notice, and she continued to occupy the property past the specified end date without permission. The landlord can now pursue legal action, such as an unlawful detainer lawsuit, to evict her and regain possession.