What is a lease holdover fee?
Asked by: Cordell Lebsack | Last update: February 7, 2026Score: 4.3/5 (67 votes)
A lease holdover fee, also known as holdover rent, is a penalty landlords charge tenants who remain in a property after their lease expires, typically at a significantly increased rental rate (e.g., 150% to 200% or more of the original rent) to compensate the landlord for lost income and to encourage the tenant to move out quickly. This charge is outlined in a holdover clause in the lease agreement and can also make the tenant liable for other damages, such as costs for a new tenant's delayed move-in.
What does holdover mean in a lease?
California. In California, "if the landlord accepts rent from you after the end of your term, you will automatically become a holdover tenant" and "your new tenancy will be a periodic tenancy." [1] Under California law, a “30 Day Notice to Quit” is required to evict a periodic tenant. [2].
Do you get your holding fee back?
You should usually get all the money back if the landlord decides not to rent to you. The landlord or agent might keep your holding deposit if you: decide not to rent the property. give wrong information or tell them something that is false.
What is a holdover fee?
At the end of each month after which the lease has the expired and the tenant refuses to leave, the landlord has the right to collect 200% of the rental rate, in what's referred to as holdover rent.
What does it mean if a lease is holding over?
What is holding over? Holding over is simply a tenant remaining in occupation of premises once the original term of their letting has come to an end. Holding over – the risks. Holding over principally presents risks as a result of the lack of clarity on the legal position of the parties that it creates.
What Is A Holdover Tenant In A Lease Agreement? - Consumer Laws For You
Can I get my holding fee back if I signed a lease?
A holding deposit may or may not be refundable. It often depends on the lease terms and local laws. In many cases, if you sign the lease, the holding fee for the apartment will apply toward your first month's rent or security deposit.
How much does it cost to convert leasehold to freehold?
The average cost of buying the freehold is around £8,500. This is based on the value of the house and a share of its marriage value. Your surveyor will take the current value of the property, the years left on the lease and the annual ground rent to calculate the premium.
What is the downside to buying out a lease?
The main disadvantages of a lease option to buy are the risk of losing significant money (option fee, rent credits, improvements) if you don't buy, potential to overpay for the house due to market changes, and taking on maintenance/repair costs without owning the property, all while facing uncertainty about qualifying for a mortgage later. You also get limited choice in properties and property modifications.
Can a landlord charge a holding fee?
A landlord may ask a prospective tenant to provide a certain amount of cash in order to hold a rental unit for a certain time. If you eventually do not rent the unit, the landlord may retain all or most of this deposit.
What is the best excuse to break a lease after?
The best excuses to break a lease legally without penalty are usually active military duty, uninhabitable living conditions (like no heat, mold, major repairs ignored by landlord), or being a victim of domestic violence/stalking, as federal and state laws often protect these situations. Other strong, negotiable reasons include a landlord harassing you, a major health crisis, or a job transfer, but these often require landlord negotiation, finding a replacement tenant, or paying a fee, rather than being automatic legal outs.
Can a landlord change his mind after holding a deposit?
The holding deposit is only refunded if the Landlord decides not to continue with the rental agreement. However, if you, as the tenant, change your mind and decide not to proceed with the tenancy, the landlord can keep the holding deposit.
How much should a holding fee be?
There is no single answer for the cost of a holding deposit, as it can vary widely. The fee might range from a small, flat sum of $100 to a much larger amount, like half or even a full month's rent. The exact amount often depends on the rental market's competitiveness and the landlord's policies.
Can you get a security deposit back before signing a lease?
Generally, however, if you give a security deposit for an apartment that you don't ever take possession of or sign a lease for, then you are entitled to the entire deposit back. The lessor, however, has the right to lease out the apartment until the moment a lease is signed.
What is another name for a holdover tenant?
Another term for a holdover renter is a "tenant at sufferance." This indicates that the tenant is living at the landlord's discretion even though they are not occupying the property unlawfully.
What is a holdover payment?
In commercial real estate, a holdover clause states that, should a tenant remain in the space beyond the lease's expiration date, they must then pay an increased rental rent until they leave the premises.
What happens if I don't move out at the end of my lease?
If you don't move out when your lease ends, you become a "holdover tenant," potentially turning into a month-to-month renter if the landlord accepts rent, or a trespasser if they don't; either way, you're liable for extra rent, fees, and your landlord can start formal eviction proceedings to legally remove you and seek damages, impacting your credit and ability to rent elsewhere.
How long does a holding fee last for an apartment?
The holding deposit is a tenant's way of committing to an apartment while the details of the lease and move-in date are figured out. Once a holding deposit is paid to a landlord, it means that an apartment will be taken off the market for a certain amount of time (usually two weeks, at most).
How long does a holding fee last?
Landlords can only keep the holding deposit for 15 days unless both parties agree to a different deadline in writing. If the landlord doesn't accept or reject the application by the deadline, the deposit must be returned to the tenant in full.
Can my landlord charge me a move out fee?
If tenants agreed to the fee at the outset, they can't contest it during move-out. But if they didn't agree to any exit fees, then landlords have no right to charge a move-out fee after the fact.
What is the 90% rule in leasing?
The 90% rule in leasing, primarily under U.S. GAAP, is an accounting guideline to classify a lease as a finance lease (like a purchase) versus an operating lease, stating that if the Net Present Value (NPV) of lease payments is 90% or more of the asset's Fair Market Value, it's treated as a finance lease, reflecting that the lessee essentially buys the asset over the lease term. It's one of several criteria, but it remains a commonly used benchmark for "substantially all" of the asset's value, even with newer standards.
Why should you not put money down on a lease?
Risk of Losing Money: If your leased car is stolen or totaled early in the lease, your insurance company may cover the vehicle's value, but you might not get back the money you put down. This means you could lose thousands of dollars with no real financial benefit.
What is the 1% rule when leasing?
The 1% lease rule is a quick guideline for evaluating car lease deals, suggesting a good lease has a monthly payment (excluding tax) around 1% or less of the car's MSRP (e.g., $400/month for a $40k car), while deals over 1.25% to 1.5% are often average to poor, requiring negotiation; it's a useful initial filter but doesn't capture all costs like fees, mileage, or incentives.
Can you be kicked out of a leasehold property?
The landlord (usually the freeholder) should only be able to evict the leaseholder if they can prove the lease has been breached, though this is very rare. This page is about leasehold properties.
What is the best way to transfer a property to a family member?
The best way to transfer property title between family members often involves a Quitclaim Deed, due to its speed and simplicity, especially for gifts or added family members, though it offers no title guarantees. Other methods include Gift Deeds, Bargain Sales (selling below market value), or incorporating it into a Will/Trust for after death, with the choice depending on tax, mortgage, and inheritance goals. Always consult an attorney to understand tax (gift/capital gains) and mortgage implications, and ensure proper recording with the county recorder.
How long does it take to change a property from leasehold to freehold?
If you follow the formal route, the process can take some time and a period in excess of 12 months is not unusual. If you follow the informal route, it depends entirely on the speed of negotiations as there are no hard and fast rules in this case.