Holdover

Include lease language that stipulates what happens in the event you remain in the space beyond the expiration of the term. Will your lease automatically be renewed? Will the landlord allow you to go on a month-to-month lease?

Many landlords require you to pay increased rent if you hold over your tenancy. Because you cannot predict what your needs will be at the end of your lease, it is wise to negotiate the terms of a holdover at the beginning of the lease.

Many leases will include language that financially compensates the landlord for any costs s/he incurs due to your holdover. For example, if you holdover two additional weeks, and the landlord’s new tenants sues him or her for not being able to take over the space immediately, the landlord might try to get reimbursement from you.

When negotiating the holdover clause, try to limit the landlord’s compensation for your holdover to a per-day amount based upon the rent at the time of the expiration of the term.

TIP: Never sign the lease until you have taken time to read it carefully. Ask questions and request changes, deletions and additions before you sign.