Holdover Tenant

Holdover Tenant

What is a residual tenant?

A residual tenant is a tenant who remains in a property after the lease expires. If the landlord continues to accept rent payments, the residual tenant may continue to legally occupy the property, and state laws and court decisions determine the length of the residual tenant’s new rental period. If the landlord does not accept other rent payments, the tenant is considered an intrusion and if they do not move quickly, an eviction may be necessary.

Key points to remember

  • A residual tenant is a tenant who continues to pay the lease even after it expires. The owner must also accept, otherwise an eviction procedure could take place.
  • Residual tenure exists in a gray area between a full rental contract and an intrusion. Even a simple one-sentence agreement offers more protection to all parties and should be considered.
  • This problem is often solved by the monthly rental clause that exists in most rental contracts.

Understanding residual tenants

For landlords wondering how long a tenant can stay after the lease expires, they should include a clause in the original lease stating what happens at the end of the rental period to protect their property and interests. For example, a one-year apartment rental lease may specify that when the lease expires, the lease is converted to a month-to-month lease.

If a landlord accepts rent from a residual tenant, the implications vary depending on national and local laws. In some cases, acceptance of payment resets the term of the lease. To illustrate, if the original lease was for a year, a new year lease begins when the owner accepts payment. In other cases, accepting payment from a residual tenant triggers a month-to-month lease.

If a landlord wants a resident tenant to leave, they must not accept rent from them and they must treat them as an intruder.

To remove the tenant from the property, the owner must attempt to evict the tenant through a transfer procedure. This is a process usually dealt with by eviction courts or small claims.

Residual tenants have a temporary rental. The term suffering signifies the absence of objection without true approval, and a dependent rental is the opposite of an unlimited rental, where a tenant occupies the property with the consent of the owner but without necessarily a contract or a lease written. Conditional rentals, on the other hand, refer to residual tenants of an expired lease who no longer have the owner’s permission to stay on the property, but who have not yet been evicted.

Special consideration: Storage procedures

A transfer procedure is a legal procedure between an owner and a resident tenant. Redemption cases are essentially eviction cases that are not based on missed rent payments, and in addition to dealing with living tenants, these cases can also involve other problems.

For example, conservation cases can remove squatters who have never had a lease or permission to occupy the property. Likewise, if your landlord wants to evict you because you breached a condition of the lease (unrelated to paying the rent), this can also be called a maintenance case. The owners can apply to the courts for a transfer case if you or your guests have created a nuisance or if you have repeatedly refused to let the owner enter the property.

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