What is Holdover Tenant?
A tenant who remains in possession of leased space after their lease expires, typically subject to increased rent and continued CAM obligations.
Definition
A holdover tenant is a tenant who remains in possession of their leased space after the lease term has expired without executing a renewal or extension. Most commercial leases impose a holdover penalty — typically 125% to 200% of the final month's rent — and may convert the tenancy to a month-to-month arrangement. For CAM reconciliation, holdover tenants present billing challenges because their lease terms (including CAM caps, exclusions, and pro-rata share calculations) may be ambiguous during the holdover period. Some leases specify that all CAM terms continue during holdover, while others are silent. Property controllers must determine whether to continue billing under the expired lease terms or adjust based on holdover provisions, and ensure the tenant remains in the CAM pool until they vacate.
Related Terms
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