Does the term ‘holdover tenant’ seem like a new term to you?

In this article, the team from Sun-Pro Realty & Management explains what a holdover tenant is, how they could impact your rental business, and how you can protect yourself as a landlord.

What Is a Holdover Tenant?

A holdover tenant is one who decides to stay on the premises even after their lease has expired, but generally continues to pay the rent and comply with the clauses of the ‘previous’ lease agreement. Landlords may find themselves in this situation when a tenant asks for some extra time on the property as they clear up a few matters on their end.

While it may sound like a great arrangement, as you can continue to receive the same rental income every month, there is some gray area when it comes to having a holdover tenant, as neither party has signed a lease agreement.

In most cases, the most recent lease agreement has set a precedent in terms of when to pay rent and what rules to follow. This means the tenant might wish to or expect to continue paying the same rental rate. However, landlords in Florida may be allowed to charge double the rental rate for tenants with expired tenancy agreements.

Hand writing on a notepad next to a black calculator and a small stack of U.S. dollars

What Are Your Options as a Landlord?

If you have found yourself with a holdover tenant in your rental property, you may be wondering how to address the issue. Luckily, there are a couple of different ways to approach the situation.

The first option would be to keep the tenant. Put together a new lease agreement and have the tenant sign it. This will help establish a clearer landlord-tenant relationship, iron out the details of the tenancy, and protect your investment and your interests. Ensure that your lease agreement is in compliance with county ordinances and Florida Landlord-Tenant Laws.

Since you already have a rental history with the tenant, this first option would be ideal. If they were always a quality tenant, then you are assured they will comply with the terms of the lease agreement and pay their rent on time.

Although it’s not strictly necessary to request any additional personal or financial information from the tenant in this scenario, it’s always recommended to conduct a renewal screening check before signing a new lease.

The second option available to you would be to evict the renter. Since there is no lease agreement in place, evicting the tenant is a viable alternative. Landlords usually consider this option once they have secured a new renter and the holdover tenant isn’t being straightforward about moving out.

Living room full of closed moving boxes

If a landlord wishes to evict a holdover tenant, they should immediately stop accepting payments from the tenant and initiate the eviction process, following Florida’s eviction laws.

However, it’s important to note that the eviction process can become a lengthy and costly endeavor. For that reason, it is best to avoid evictions and only use them as a last resort.

Preventing Holdover Tenants

In order to avoid the potential issues that come with having a holdover tenant, it’s best to completely avoid having one in the first place. Here are some of the options landlords may consider.

Notice to the Tenant

Before the active lease agreement expires, get in touch with the tenant and inquire about the next step. Ask if the tenant wishes to renew their lease, or if they plan to move out.

Follow Florida guidelines regarding notice periods and don’t forget to mention the legal and financial ramifications of a tenant extending their stay on the premises.

It’s possible a tenant might still request to spend a few more days past their lease expiration. They might need a place to stay while their new home is being repainted or some new appliances are being fitted.

In such cases, the landlord can create a special arrangement for the tenant and their unique situation. They can choose to charge the tenant on a daily rate to prevent creating a special legal situation and protect their investment.

Use of the Lease Agreement

Printed sheet of paper that reads "Lease Agreement" at the top

Once signed by both the landlord and the tenant, the lease agreement becomes legally binding. Thus, the landlord can include a clause in the lease that doesn’t allow for the creation of a holdover tenant. Make it clear that no rental payment will be accepted after the lease expires unless a new agreement is signed.

This will put you in the best position to continue enjoying the full benefits of owning and renting out a property.


Having a holdover tenant in a rental property is not ideal for any landlord, as it can lead to costly or lengthy legal situations. To tackle such unique property issues, consider working with a reliable and dependable property service provider.

Sun-Pro Realty & Management is one of the leading service providers in the Daytona Beach area. Offering expert property management solutions to clients, we are known for our professionalism and excellent service. Get in touch with us today!