Lease Term talk

By Nancy Kaller on Jul 15, 2021 at 07:02 PM in Articles
Lease Term talk

Lease Term talk

Like the section in our Rental Agreement, your rental agreement should have a section that shows the Term of the agreement. It could be either fixed-term or month-to-month. The fixed-term will clearly state a start date and an end date of the agreement, whereas a month-to-month agreement, is just that, your agreement is month-to-month.

In our rental agreement, in this Term section, we reference an additional section in the agreement that references Termination/Holdover. In the Termination/Holdover section, for the month-to-month term, it states when you should give a written notice to terminate the agreement, and for the fixed term agreement, it says it shall automatically convert to a month-to-month tenancy at the end of the term, absent a written agreement between parties to the contrary. 

Before leasing a home, your landlord had to prepare the home, get any items fixed, get the home clean and sparkly, so when a resident is found, your landlord will have the home ready and will then begin preparing the paperwork, do background checks, etc. It takes time and effort to get a resident into the home. Therefore, once the landlord has selected you to be the resident of their home, the landlord usually hopes that you don’t leave before the lease is over. Once the fixed term lease is over, and the landlord lets you stay in the home after the lease has expired, and the rent has continued to be paid, this is referred to as a Holdover. The rental agreement essentially becomes a month-to-month tenancy. In short, a holdover tenant is a tenant who stays in the home after the rental agreement expires. 

Some landlords will avoid a holdover tenancy for reasons that it could disrupt their normal processes and perhaps the laws governing this type of tenancy could differ. Therefore, if you try to pay your rent without a renewal agreement, your landlord probably won’t accept the rent payment because once they start collecting rent, usually the tenancy then becomes a holdover tenancy and is treated as a month-to-month tenancy. Check into your state laws that are available to ensure you are compliant in your rental agreement.

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This article is not intended to be exhaustive or a substitute for qualified legal advice. Laws and statutes are always subject to change and may vary by county or city. You are responsible for performing your research and complying with all laws applicable to your unique situation.

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