A holdover clause in a contract specifies the conditions and obligations of the parties if a tenant or lessee continues to occupy the property beyond the expiration of the lease term. It typically outlines the changes in rental terms, such as an increase in rent, and the landlord's rights and remedies during the holdover period.
If Tenant fails to deliver possession of the Premises in accordance with the applicable provisions of the Lease on or before expiration of the First Option Term, or the Second Option Term as the case may be, the Minimum Monthly Rent for first calendar month following the expiration of the applicable Option Term (the “First Holdover Month”) shall be an amount equal to one hundred and fifty percent (150%) of the applicable Option Term Rent; provided, however, Tenant shall pay such amount on or before the last business day of the applicable Option Term, together with Tenant's proportionate share of Landlord's estimated Total Operating Costs as provided in Section 4 above, and each as otherwise provided in Sections 3 and 7.3 of the Lease.
If Tenant fails to deliver possession of the Premises in accordance with the applicable provisions of the Lease on or before expiration of the First Holdover Month, the Minimum Monthly Rent for second calendar month following the expiration of the applicable Option Term (the “Second Holdover Month”) shall be an amount equal to one hundred and seventy five percent (175%) of the Minimum Monthly Rent payable during the First Holdover Month; provided, however, Tenant shall pay such amount on or before the last business day of the First Holdover Month together with Tenant's proportionate share of Landlord's estimated Total Operating Costs as provided in Section 4 above, and each as otherwise provided in Sections 3 and 7.3 of the Lease.
Holdover. Tenant will, at the termination of this Lease by lapse of time or otherwise, yield up immediate possession of the Premises to Landlord with all repairs and maintenance required herein to be performed by Tenant completed. If Tenant remains in possession after such termination without Landlord’s written consent, such holdover shall not be deemed to be a renewal of this Lease but shall be deemed to create a month-to-month term which may be terminated by either party on the thirtieth (30th) day after written notice is delivered to the other party. In the event that any such holdover exists, all of the terms and provisions of this Lease shall be applicable during such holdover period, except that Tenant shall pay Landlord from time to time upon demand, as rent for the first three (3) months of any holdover an amount equal to the then-current Monthly Base Rent and Operating Expenses in effect on the termination date, and thereafter, an amount equal to one hundred fifty percent (150%) of the Monthly Base Rent and Operating Expenses in effect on the termination date, computed on a daily basis for each day of the holdover period. Tenant agrees to indemnify, defend and hold Landlord harmless from any and all claims, loss or damage arising from Tenant’s holdover.
If Sublessee fails to surrender all or any part of the Premises at the termination of this Sublease, occupancy of the Premises after termination shall be that of a tenancy at sufferance. Sublessee’s occupancy shall be subject to all the terms and provisions of the Master Lease, and Sublessee shall pay an amount (on a per month basis without reduction for partial months during the holdover) equal to 200% of the sum of the minimum rent set forth in Section 6 of the Sublease due for the period immediately preceding the holdover (“Holdover Rent”). No holdover by Sublessee or payment by Sublessee after the termination of this Sublease shall be construed to extend the Term or prevent Lessor or Sublessor from immediate recovery of possession of the Premises by summary proceedings or otherwise. If Lessor is unable to deliver possession of the Premises to a new tenant or to perform improvements for a new tenant as a result of Sublessee’s holdover and Sublessee fails to vacate the Premises within 15 days after notice from Lessor or Sublessor, Sublessee shall be liable to Sublessor and Lessor for all damages that Lessor actually suffers from the holdover in addition to the Holdover Rent set forth above.
Holdover Tenancy. Any holdover tenancy after termination of the Monthly Tenancy with Landlord’s consent shall be construed to be a month-to-month tenancy. Any holdover tenancy after termination of the Monthly Tenancy without Landlord’s consent shall be construed as a tenancy at sufferance.
Holdover Leases and 2020 Lease Expirations. As of January 4, 2021, the Company owns 90 properties with leases that expired in 2019 and 2020. The Company has agreed with the USPS upon rents on all properties. Of the 90 properties, 72 properties have new leases that have been fully executed by both the Company and the USPS and leases for the remaining 16 properties have been signed by the Company and returned to the USPS for execution. Leases for the remaining two properties, which were acquired in the fourth quarter of 2020, are awaiting draft leases from the USPS.
SECOND. Notwithstanding anything to the contrary contained herein or in the Existing Leases, if Tenant fails to surrender any portion of the Premises in the condition required hereunder on or before the Surrender Date (time being of the essence), (a) Tenant shall be deemed to be holding over in the entire Premises, and shall pay the sums due pursuant to Section 12.01 of the Original Lease for Rent due after the termination of the Original Lease together with the sums due pursuant to Section 7.10 of the Sublease for holdover rental due after the termination of the Sublease (such amounts shall collectively hereinafter be referred to as “Holdover Rent”), and shall be subject to all of Landlord’s rights and remedies set forth in the
The Court did not discuss whether it mattered if a “holdover” director was previously elected without opposition or under a different criterion for election. Nor did it consider that its ruling could result in a RIC having “holdover” directors whose terms had expired continue to serve not just temporarily, as it assumed (“Moreover, the measure is only temporary. The holdover directors can be replaced when successors are validly elected.”), but indefinitely. In addition, the Court used a strict textual analysis to conclude that a Majority Voting Requirement did not violate Maryland law. It acknowledged that the legislative history of the statute in question indicated that it was intended to ‘“essentially eliminate the possibility’ of failed elections and holdover directors” but concluded that “this is not a case where there is a need to look past the statutory text.
The Court did not discuss whether it mattered if a “holdover” director was previously elected without opposition or under a different criterion for election. Nor did it consider that its ruling could result in a RIC having “holdover” directors whose terms had expired continue to serve not just temporarily, as it assumed (“Moreover, the measure is only temporary. The holdover directors can be replaced when successors are validly elected.”), but indefinitely. In addition, the Court used a strict textual analysis to conclude that a Majority Voting Requirement did not violate Maryland law. It acknowledged that the legislative history of the statute in question indicated that it was intended to ‘“essentially eliminate the possibility’ of failed elections and holdover directors” but concluded that “this is not a case where there is a need to look past the statutory text.”
The Company received all of its April, May and June rents and payments due from holdover tenants and has not received any request for rent concessions as of the date of this Quarterly Report.
This Lease shall expire at the end of the Term, provided that in the event that the Lessee shall for any reason, fail to vacate the Leased Premises at the expiration of the Term, the Lessee shall be deemed to be a “holdover” Lessee and liable for additional rents provided herein.
HOLDOVER RENT. In the event that Lessee is classified as a holdover Lessee pursuant to paragraph 1.B. above, and Lessor does not authorize the holdover, monthly rent for the holdover period shall be increased by Fifty Percent (50%) of the then-existing monthly rental rate (the “Holdover Rent”). The Holdover Rent shall be due and payable in advance.
Holdover refers to a situation or condition where a tenant continues to occupy rental premises after the expiration of a lease agreement. It can also refer to provisions within contracts that deal with how a particular clause or condition should continue to apply once the primary terms of the agreement have ended. Holdover can be relevant in both real estate and contractual contexts.
Use a Holdover provision when there is a need to address the circumstances under which occupancy or certain contractual obligations might extend beyond the originally agreed term. This is particularly important in lease agreements to define the terms and conditions under which a tenant can remain in the property and the implications of such a situation, such as increased rent or transition to a month-to-month lease.
When drafting a Holdover clause, ensure the following elements are clear:
“If the Tenant remains in possession of the Premises after the expiration of the Lease Term, such possession shall be deemed a month-to-month tenancy terminable upon thirty (30) days written notice by either party. During such holdover period, all provisions of the Lease shall remain in effect except that the monthly rent shall be 150% of the rent applicable during the last month of the Lease Term.”
Holdover provisions are commonly found in:
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