The multiplier applied to base rent if the tenant remains post-expiration.
Also known as: Overstay Penalty
By Angel Campa, Founder · Updated March 2026
Holdover rates of 150-200% of base rent can cost tenants thousands per month if they stay even one day past expiration. Missing this field during abstraction means the tenant does not know their penalty exposure. A tenant paying $40,000/month in base rent faces $60,000-$80,000/month in holdover charges. Beyond the rent premium, holdover tenants may be liable for consequential damages if an incoming tenant sues the landlord for late delivery.
Found in the "Holdover" or "Holding Over" section, typically near the end of the lease. The rate is usually expressed as a percentage of the last applicable base rent (e.g., "150% of the then-current Base Rent").
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the holdover rate from your lease PDF. The AI searches for the field name and common aliases like "Overstay Penalty" across all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Lextract automatically checks this field against its 15-rule red flag engine. Issues detected for holdover rate:
Monetary Cure Period
The number of days allowed to remedy missed financial payments after notice.
Non-Monetary Cure
The number of days allowed to remedy operational or physical breaches after notice.
Acceleration Clause
Landlord's right to demand all future rent immediately upon a lease default.
Liquidated Damages
A predetermined penalty fee assessed for specific breaches of the contract.
Late Fee %
The penalty percentage applied to overdue rent payments.
Most commercial leases set holdover rates between 150% and 200% of the last base rent. Rates above 200% are aggressive and should be negotiated. Some leases also specify that holdover creates a month-to-month tenancy terminable on 30 days notice, while others treat it as a tenancy at sufferance.
Yes, though landlords resist because the high rate incentivizes timely vacating. A common compromise is 125% for the first 30-60 days (to account for reasonable move-out delays) escalating to 200% thereafter. This protects the tenant from short delays while still penalizing extended holdover.
No. Beyond the elevated rent, the holdover tenant may be liable for consequential damages including rent differential to the landlord if they had a signed lease with a new tenant at a higher rate, moving and storage costs incurred by the incoming tenant, and attorney fees for eviction proceedings.
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