In an ideal situation, property owners find decent and responsible tenants who stay without damaging the property and pay the rent on time. However, as much as you want to avoid it, sometimes you may have a tenant who does not move out after the lease expires. (Viagra) These tenants are also called holdover tenants.
The Legal Status of Holdover Tenants
If the property owner continues to accept rent after the lease expires, the tenant can continue to occupy the property legally. The Federal and state laws will establish the duration of the new rental terms, however, in some cases, the original lease agreement will change to a month-to-month tenancy. If the tenant stays without having a valid lease and does not pay rent, the law considers him a trespasser, and he is liable for eviction if he does not vacate the premises immediately.
What to Do Before the Lease Expires
In most states, the law requires the property owner or the tenant to provide notice of their intention after the lease expires. If your state has no rules, you should ideally get in touch with your tenant at least 90 days before the lease expiry date to find out if the tenant intends to vacate the premises or renew the lease, recommends a leading Eugement property management agency.
Notice of Termination
If the tenant does not inform you when they will vacate the property, you need to serve him with a notice of termination. The notice should include the reason for termination, the last date by which, the tenant should vacate, and the consequences of non-compliance. You should seek the advice of a lawyer since the requirements vary according to the state. If the tenant does not act, you can move the court for an eviction process texas. You must remember you must follow the legal means provided in your state and local eviction laws and not take any action outside them since even holdover tenants have rights. However, the law allows you to collect rent or sue the tenant for such rent for the holdover period. According to Forbes, you should try to agree with the tenant because an eviction can be long and expensive.
Avoiding Holdover Tenants
You must clearly explain to the tenant and provide the details in the lease agreement regarding what will happen after the expiry of the lease. Typically, most property owners allow for month-to-month arrangements pending a fresh long-term lease. You must specify the days of notice the tenant must give if they want to renew or not renew the lease. Most states provide 90-120 days’ notice. Make it a point to reach out to the tenant in writing well in advance of the date by which he needs to inform you of his decision to renew the lease or vacate the property. Once you know his decision, you can either renew the lease or inspect the property to initiate his moving-out process.
Holdover tenants can cause unnecessary stress and anxiety, but you can prevent it by drafting a comprehensive lease agreement and reaching out to the tenant well before the lease expires. An eviction is usually the last resort.