Here are the steps landlords and property managers can take to evict a tenant whose lease has ended.
When a tenant’s lease agreement ends, you expect that they’ll either renew the lease and keep living in the unit or inform you that they’re moving out. But what if a tenant doesn’t take either action? That’s when they become a holdover tenant.
These tenants don’t sign a new lease but continue to live in the rental. And there are several options for handling the situation, including eviction. Here’s a look at what to do about a holdover tenant.
What is a holdover tenant?
A holdover tenant is a renter who doesn’t vacate the home at the end of a lease term and keeps living in the property without permission from a property owner or manager. They often even continue paying rent.
Tenants can actually go on living in the home without a lease, until the property manager goes through a formal process to remove them. So, the holdover period officially starts when a lease concludes and ends when the tenant is given a written notice to leave.
What to do about a holdover tenant?
Landlord-tenant laws vary drastically by state and city, so you must read up on your local area’s regulations regarding holdover tenants. In some cases, if a property manager accepts rent, it resets the lease term and you can’t evict them. In other areas, accepting rent enacts a month-to-month lease.
When drafting your lease agreement, include details about what happens once a lease agreement expires to prevent having holdover tenants. Specify a timeframe when you’ll take action if someone doesn’t move out of the home after the lease term and what that action will be.
Since rental laws vary so much, how to best handle a holdover tenant depends on where you live. The first step is to discuss the situation with the tenant to get a sense of their intentions and what might work best for everyone. Often, finding a way to keep a good tenant in your unit is best. Advertising the home and finding new tenants is time-consuming and costly.
Eviction is often one option for dealing with a holdover tenant. You can also convert them to a month-to-month lease, especially if they’re still paying rent. Include terms for how they notify you when they want to move out and how you’ll inform them when you want to end the lease. And, of course, make sure everyone signs the new lease.
How to evict a holdover tenant
If you decide eviction is the best way to deal with a holdover tenant, there are several steps to take. Keep in mind that evictions can take time and usually come with hefty expenses. Here’s how to evict a holdover tenant:
Know the law
Eviction laws differ from state to state, so start by researching local laws. The laws are complex, so hiring an attorney is the best way to ensure you do the eviction by the book. Also, double-check that there are no local eviction moratoria in your area.
Establish grounds for eviction
Before you begin the official eviction, make sure you have a good reason. Staying past a lease term without permission is often grounds for eviction — but you must know for sure. And, if you’ve been accepting rent payments, that could complicate your ability to evict. That’s why consulting with an attorney is crucial.
If the tenant isn’t paying rent, has caused damage to the property or has violated the lease agreement in other ways, that’s adequate grounds for eviction. You’ll most likely need to prove your case if the eviction goes to court. So, hang onto any emails or letters about the end of the lease, late rent or any other issue that has come up.
Ask the tenant to leave
Simply asking the holdover tenant to leave the property can save you both a lot of time and money. If you have a good relationship with your renter, you can explain that the lease term has ended and that they’ll need to sign a new lease to continue living in the unit. Otherwise, you’ll have to evict them.
Mention that the eviction will take time, likely cost them money and could harm their credit, which might affect their ability to rent a home in the future. Working out a solution is better for everyone involved.
But, never take matters into your own hands. Avoid removing a tenant’s belongings from the home or changing the locks. If you can’t persuade the tenant to leave, that’s when you should send a formal eviction notice.
Provide the holdover tenant with a formal notice
To officially start the eviction process, you must send a formal eviction notice to the holdover tenant. The notice tells the tenant that they must vacate the property by a specific date or you’ll proceed with the eviction through the court system.
The eviction notice should include the following elements:
- Rental property address
- Date when the tenant must move out
- A detailed description of the situation, including the reason for the eviction
- An explanation of why the holdover status violates the lease agreement
Deliver the eviction notice in person or send via certified mail or a read receipt email, so you have proof they received it. Deliver the notice within a certain number of days before filing with the courts, usually 30 or 60 days but it depends on local eviction laws.
File the eviction with the court
If the tenant doesn’t respond to the eviction notice or move out of the unit, file it with the court. The specific process for filing evictions with the courts is different from place to place, so contact your courthouse for the details.
Usually, the process goes something like this:
- File the paperwork in person at your local courthouse
- Pay a fee
- Show proof that you provided a formal eviction notice to the tenant
- Receive a scheduled hearing date
The court will inform the tenant of the eviction filing and hearing.
On the hearing date, be sure to attend and make your case for removing the tenant. You have the option to hire an attorney or represent yourself. And, you’ll want to bring evidence, such as the original lease agreement, records of communication with the tenant, the formal eviction notice and proof that the tenant received the notice.
Go through with evicting the holdover tenant
If the court sides with you, the holdover tenant will be given a move-out date. The exact timeframe they’ll have to move out depends on local laws.
Hopefully, they’ll go peacefully. If not, you have the right to contact local law enforcement, citing the court’s judgment in your favor. A police officer will tell the tenant to move out in a day or two or escort them off the property.
If the tenant owes back rent, you can file a small claims lawsuit to collect it. You’ll receive a court order to garnish the renter’s wages and repay the owed rent.
Evicting a holdover tenant from your rental
A holdover tenant isn’t something most property managers or owners expect, but it happens. The best way to handle it is to prepare and include provisions for holdover tenants in the lease agreement. In the worst-case scenario, you can use these tips to evict the tenant. When you list your rental at Rent., you can get in front of millions of potential renters, screen tenants and collect rent online.
Source: rent.com