How to Handle Holdover Tenants in Commercial Properties

A holdover tenant is one who, apparently, overstays the duration of their commercial lease. The center of a holdover tenancy case is the question of whether the tenant has a legal right to remain in possession of the rental property. 

A landlord will begin a holdover proceeding to recover possession of the property when the tenant’s legal right to occupy the property comes to an end. That right to occupy may end at the end of the stated duration of the lease or if there has been an apparent violation of lease terms. 

What are the Different Types of Holdover Proceedings?

Holdover Tenancies occur in a variety of situations. Depending upon the type of holdover tenant, the landlord will need to provide different types of notice before initiating an eviction. 

• A Notice to Quit must be served in situations where a licensee who is not listed on a lease occupies a commercial unit with the permission of a tenant. Typically, these are individuals who are friends or a family member of the tenant. A notice to quit allows the licensee a chance to leave the unit voluntarily. A holdover proceeding will commence if the licensee refuses to do so. 
• A Notice to Cure is necessary for service upon tenants whose tenancies interfere with the rights of another tenant. When a tenant damages property or is engaging in illegal activities, this person is a nuisance holdover. The notice to cure is intended to allow a tenant to stop the behavior before an eviction is initiated. 
• Lease terminations occur when a commercial landlord chooses not to renew a tenant’s lease. A notice of termination must be provided to a tenant. If a tenant does not vacate the property before the termination period expires, a landlord may file a holdover proceeding. 

Holdover Proceedings: A Timeline

By understanding the process involved in a holdover proceeding, a landlord can save time and money. 

Notice must be provided to a tenant before beginning court proceedings. Anywhere from thirty to ninety days’ worth of notice must be given depending upon the length of tenancy. A case where proper notice is not given can result in a dismissal by the court. 

A landlord files a holdover petition in housing court once the notice period comes to a close. The tenant will be served with both a petition and a notice of hearing. Depending on the county where the holdover petition is filed, anywhere from approximately thirty to 125 days of waiting occurs between service of the petition and the first court date. 

On the Intake Date (first court setting), a tenant has a right to learn their rights under the law and potentially meet with the landlord or their legal counsel. Failure to do so may result in the landlord being afforded a hearing before the court, where arguments can be made in favor of eviction. A trial date will be set, and the two sides will then have an opportunity to settle the case in the meantime. 

A trial involves both the landlord and tenant presenting evidence, making legal arguments,s and examining/cross examining witnesses. A judgment will result once all evidence and arguments are made. 

In a Holdover Tenancy, Legal Representation Matters- Contact Knox Law Group

A New York City holdover tenancy lawyer at the Knox Law Group understands the complexities faced by landlords in attempting to restore possession of a leased premises. Contact our office today for a free case review.