A penalty clause that activates when a tenant remains in the leased space after the lease term expires without signing a renewal. It typically imposes a sharply increased rent rate.
Holdover rates usually range from 125% to 200% of the last month's base rent, designed to pressure tenants into either vacating on time or formally renewing. Beyond the rent premium, holdover clauses frequently expose the tenant to consequential damages: if an incoming tenant sues the landlord for failure to deliver the space, the holdover tenant may be liable for those costs. Upon holding over, the tenant's legal status typically converts to a month-to-month tenancy or a "tenancy at sufferance" under state law.
Lextract extracts these fields directly from your lease PDF:
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