Holdover Clause

Termination
warning risk
both lease

Consequences of staying past the lease term without a new agreement.

Tenant-friendly language

Holdover rent is 110% of the prior rent on a month-to-month basis.

Landlord-friendly language

Holdover rent is 200% of the prior rent plus consequential damages.

What to watch out for

Holdover penalties of 150-200%+ and exposure to consequential damages.

How to negotiate

Cap holdover at 110-125% and exclude consequential damages.

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