Audrey
In the ideal landlord-tenant relationship, a tenant will remain a resident of the landlord’s property for exactly the length of the lease. And while most landlords try to ensure their tenants don’t break their lease early, sometimes they face the opposite problem.
In some cases, a renter might stay in their current home even after their lease has expired — becoming what’s referred to as a holdover tenant.
What Is a Holdover Tenant?
Holdover tenants are people who continue to occupy a property even though they should have moved out according to the terms of their lease. Holdover tenants are often referred to as “tenants at sufferance” because their ability to remain on the property is entirely up to the discretion of their landlord.
Is Holdover Tenancy Legal?
A tenant continuing to live in a home after their lease has ended doesn’t seem like it should be legal. However, the legality is determined by how the landlord chooses to move forward.
Technically, landlords can allow tenants to remain on their rental property indefinitely — as long as they own the property. Lease agreements are indeed contracts that set clear expectations for both tenants and landlords, but property owners are under no legal obligation to insist that tenants vacate after their lease is up.
In many holdover tenancy situations, landlords will continue charging their tenants the same rent price agreed upon in their lease, but instead on a month-to-month basis. A holdover tenancy might therefore seem like the easiest way to move forward if the lease is ending and you aren’t seeking to replace your tenant for any reason.
Holdover Tenancy Issues for Property Management in San Diego
If a tenant’s lease is ending soon and you suspect they have no intention of leaving, there are several things to consider before you allow them to become a holdover tenant.
While you may consider simply allowing the situation to play out, many providers of property management in San Diego have seen firsthand how many problems this situation can create. Let’s take a look at some of the most common issues that can arise for landlords with holdover tenants.
Eviction
If you’ve ever pursued eviction for a rental property tenant before, you know how complex and difficult this process can be. And when the individual you’re trying to evict has become a tenant at sufferance, the road to eviction can be even more complicated. The tenant has already demonstrated an unwillingness to abide by the terms of their lease and might therefore neglect to comply with the eviction.
The laws surrounding eviction for holdover tenants can vary from state to state. Make sure you consult with your trusted property management in San Diego so that you can navigate this process with the law on your side.
Sudden Vacancy
While a tenant is under their lease, you can count on how much rent money you’ll receive every month and when your property will be vacated for a new tenant to move in.
However, once they become a holdover tenant, they are essentially living month-to-month — putting the future of your income in question. Once they finally decide to leave, you might only have days to prepare for a sudden vacancy. This can lead to your property being vacant for longer than expected, which causes financial losses.
Maintenance
Many landlords schedule maintenance and repairs for the days or weeks between tenants when a rental property is scheduled to be vacant. If a tenant ends up staying on the property past their lease expiration, it could put much-needed maintenance on hold, which could negatively affect the quality of the home.
What Can I Do About My Holdover Tenant?
If you have a holdover tenant in California and you’re not sure what to do, there are only two paths forward in this situation.
The first option is to let them stay and continue to collect month-to-month rent, knowing the risks. The second is to pursue eviction, but keep in mind that even holdover tenants are required to have at least 30 days’ notice. Make sure you have the advice of experienced property management in San Diego on your side before you move forward.
