Holdover
Gridlync land and infrastructure glossary.
A holdover occurs when a tenant remains in possession after a lease term expires. Many leases define holdover rent, often a premium, and the conditions under which a holdover tenancy continues month to month. Holdover rent is commonly set at 125 to 200 percent of the prior rent to discourage tenants from overstaying. Whether a holdover is permitted or counts as a trespass depends on the lease and how the landowner responds.
Unmanaged renewals can slip into costly holdover periods. Gridlync alerts teams before terms expire so renewals are handled on time.
Example
Apex Telecom’s tower lease with the Nguyen family expires before renewal terms are settled, and Apex keeps operating. The holdover clause bumps its rent to 150 percent, so the family collects $3,000 a month instead of $2,000 until the parties sign an extension.