Net lease glossary
Holdover
When a tenant stays in possession after the lease expires without a new agreement, usually at an elevated holdover rent.
Holdover occurs when a tenant remains in the premises after the lease ends without signing a renewal or extension. Most leases set holdover rent at a premium, often 125% to 200% of the last rent, and may make the tenant liable for damages if holdover delays a new tenant. Holdover usually creates a month-to-month tenancy. For investors, an expiring lease with a tenant in holdover is a signal to negotiate term or plan for re-leasing.