Lease Agreement Holding Over: Understanding the Consequences
When you rent a property, you and your landlord sign a lease agreement that outlines the terms and conditions of your tenancy. The lease agreement will usually specify the duration of your tenancy, and what happens when your lease expires. However, if you continue to occupy the property after your lease expires, you may find yourself in a situation known as ‘holding over.’
Holding over refers to the act of continuing to occupy a rented property after the expiration of your lease agreement without signing a new agreement. If you find yourself in this situation, it is essential to understand the consequences of holding over.
1. Rent Increases
When a lease agreement expires, the landlord has the right to increase the rent. If you continue to occupy the property without signing a new lease agreement, you may be subject to a rent increase. The landlord may also choose to prorate the rent in case of partial months.
2. Legal Action
If you hold over without the landlord’s permission, they may take legal action against you to evict you from the property. This can result in expensive court fees and may also harm your credit score.
3. Losing Your Security Deposit
When you first move into a rented property, you will usually provide a security deposit. If you hold over without signing a new lease agreement, the landlord may refuse to return your security deposit, citing the breach of the lease agreement.
4. Losing Your Rights as a Tenant
When you hold over, you lose the protection granted to tenants under the lease agreement. This means that the landlord may choose to change the terms of your tenancy, such as access to amenities, maintenance duties and responsibilities, and more.
Conclusion
Holding over can be a tricky situation to navigate. It is essential to understand the consequences and be proactive in communicating with your landlord if you wish to continue your tenancy. If you are uncertain about the terms of your lease agreement or need guidance about holding over, it is best to consult with a lawyer or a local tenant advocacy group.