The amount that increases the rent under a Holdover clause varies from lease to lease. The usual battle of the hold-over clause is in the landlord`s first project, which increases the rent from 25% to 300%. Once this percentage increase has been observed, the increase, hard or not, usually ends when the tenant goes. However, other over-coverage clauses constitute the possibility of an additional year, often with a certain increase in rent that would never have been pleasant in advance during a negotiation, or to extend the duration of a period equivalent to the initial duration, and always with a huge increase in rent. Consider the tenant who needs only a week or a month longer; An extension of the term of one year or more at the owner`s choice will be problematic. Landlords who want to avoid the mistake of closing to a retained tenant should always include in the original tenancy agreement a clause indicating what is happening at the end of the tenancy period to protect their property and interests. A one-year lease may indicate, for example. B, that the lease is converted into a monthly lease after the expiry of the lease. Please note that this document does not constitute legal advice.
Please contact a lawyer who wishes to give definitive advice on what to do in a given situation. Suppose a tenant paid a gross rent of $12 per square metre per year, when the lease ended on an area of 5000 square metres. If the tenant decides to exercise the Holdover clause and stay in the space without signing a new lease, the new rent could be $18 or even $24 per square metre. Here are four important points that a tenant can negotiate in an overcharging clause to create a win-win situation for the tenant and landlord: to remove a tenant from a property, a landlord must initiate a surge procedure, which is essentially an eviction case that does not rely on missed rents. This is a process that is generally dealt with in deportation courts or small claims. As a general rule, the Holdover clause in a commercial lease stipulates that if the tenant stays in the premises he rents at the expiry of the tenancy agreement, the tenant must pay a higher rent above the rental price at the time the lease expires. In the absence of a contrary provision, a tenant who has not obtained the landlord`s approval for overbooking may be considered by the landlord to be an offender. A tenant considered a transgressor is also liable to the landlord for the fair value of the premises and for any other damages that the lessor can recover from the tenant (p.B the loss of a new tenant).