Understanding Holdover Tenancy

The end of the lease term for an apartment often arrives much quicker than parties expect. The landlord or tenant may lose track of when the lease agreement will end. If the renter doesn’t want to move, they may stay and keep making payments. If the landlord keeps getting checks, evicting them is unnecessary.

However, the legal status of a landlord-tenant relationship without a new lease can be unclear. This applies to holdover tenants who keep making payments after the end of the rental term. This page is an overview of holdover tenancies. However, real estate laws are based on state and local regulations. For more information about how things work where you live, talk to a local landlord-tenant lawyer. 

What Is a Holdover Tenant?

A holdover tenant is a tenant who stays in the property and continues to pay rent after the end of the lease period. If the property manager or landlord continues to accept rental payments, the holdover tenant can stay in the property.

Generally, lease agreements provide for what happens with continuing payment after a lease expiration. In most cases, the lease will indicate that the lease automatically converts to a month-to-month tenancy. Other rental agreements may provide for an automatic lease renewal at the end of the period.

At the end of a lease, the landlord and tenant can enter into a new lease agreement. Alternatively, if the landlord wants a new tenant, they can remove the tenant after the end of the lease term. If the tenant doesn’t pay rent or the landlord doesn’t accept continuing payments, the landlord may have to go through the eviction process.

What Happens if the Tenant Pays Rent After the Lease Ends?

At the end of a lease, if the tenant continues to pay monthly rent, what happens depends on whether the landlord accepts the rent payment. As long as the landlord accepts the rental payments, the tenant can generally stay in the property.

If the lease agreement does not indicate what will happen at the end of a lease, state law can control what happens. In some states, the lease will convert to a month-to-month lease. Other states may renew the lease. Some states will treat the new status as a tenancy at will.

If the landlord doesn’t accept the rental payments, then the tenant doesn’t have the landlord’s permission to overstay the lease. The landlord can ask the tenant to leave at the end of the lease term, and if the tenant doesn’t leave, the landlord can go through the eviction procedures.

Can the Landlord Evict a Tenant Paying Rent?

A landlord can evict a tenant for not paying rent. At the end of the lease term, the landlord is not obliged to accept rent. If the landlord doesn’t accept the continuing payment, the property owner can send a written notice to vacate the property. After going through the local process and state court, the tenant can be forced out of the house as a trespasser.

How Much Notice Do You Need for an Eviction?

Again, the notice period to evict a tenant depends on state and local laws. The time limit and the eviction proceedings can range from two weeks to six months. For rental properties, there is usually a time limit from the eviction notice to the eviction date. If the holdover tenant is now on a month-to-month tenancy, the eviction process may differ from eviction for nonpayment.

Why Would a Landlord Not Want a Holdover Tenant?

A property owner may not want a holdover tenant, even if they keep paying rent. If rental prices increase, there may be a limit on how much they can increase rent for an existing renter. By getting a different tenant in a new rental, they may be able to increase the rental amount.

The landlord could also prefer a more predictable tenant stay of one year with a new lease. A holdover tenant who rolls over to a month-to-month may only have to give a 30-day notice.

How Can a Landlord-Tenant Attorney Help?

It isn’t easy to summarize the exact process of a holdover tenancy. This is because so much depends on state and local laws. Residential rental laws are constantly changing. The best advice you can get is from a local lawyer with experience in landlord-tenant law. They will be familiar with the process, timelines, and how to protect your rights.

If you are a landlord with a holdover tenant or a tenant looking to stay in your rental, a landlord-tenant lawyer can help. Contact a local landlord-tenant attorney for answers to your specific legal questions.