The question for today is, “What happens at the end of the lease?” The tenants could move out. Obviously the parties could extend the agreement or make a new one. Or the tenants could stay and the owner accepts rent, and we have a “Holdover”.
Therefore, if tenants want to stay, either party can insist on a new lease, or the tenants continues paying rent and the owner accepts. What do I recommend as a tenant, try to get a new lease. What do I recommend as an owner, Holdover. In these cases the lease is a tenant’s friend.
Why do I like the Holdover? One main reason from experience is that if the tenant becomes a problem, I can give them a 3 Day or 30 Day Notice to Vacate. They have no lease. Also, the Holdover creates a month-to-month tenancy, so if conditions change, and I want to raise rents, I can at any time. These advantages have to be balanced with the problem that the tenants can also move at any time by giving a 30 day notice.
By the way, did you know that by giving the proper notices an owner can raise rents on a month-to-month tenancy at any time as long as the raises are not discriminatory, and your property is not in a Rent Controlled Area.Yes, more than once a year.
Just some thoughts.