When a tenant’s lease ends, they’re supposed to move out or sign a new one. But if they stay without renewing, things change. The tenant becomes a holdover tenant. But exactly what is a holdover tenant, and what rights do they have? We’ll break that down below.
Key Takeaways
- What is a holdover tenant? in Texas, holdover tenants stay in a rental unit after their lease expires without signing a new agreement or getting landlord approval, but if the landlord accepts rent, the tenancy may transition to month-to-month.
- Landlords can either accept rent and continue the tenancy or refuse payment and issue a notice to vacate, which could lead to eviction if the tenant does not comply.
- Holdover tenants still have rights, including proper eviction notice, protection against unlawful lockouts, and the right to receive their security deposit refund within 30 days of moving out.
What is a Holdover Tenant?
As experts in San Antonio property management, we can tell you that a tenant is a holdover tenant who stays after their lease runs out–and doesn’t sign a new one.
In Texas law, specifically, a holdover tenant is one who stays past the lease’s end without landlord permission. So, if they keep paying the rent and the landlord knowingly takes those payments, they may not be considered a holdover tenant. Instead, if the lease allows it, their tenancy could transition into a month-to-month setup. They maintain the same lease terms as the original lease. However, some leases explicitly prohibit holdover tenancies or impose financial penalties for staying late. So, landlords should review the lease terms before moving forward.
How Does Someone Become a Holdover Tenant?
Someone can become a holdover tenant either on purpose or by accident. Some tenants are under the impression that their move-out timeframe is flexible since it hasn’t been explicitly spelled out. Additionally, others may face difficulties finding a new place in time. Then, they may stay in the unit as they try to find someplace new.
Crucially, landlords can unintentionally contribute to this problem. They may not take the time to set clear expectations or delay discussing lease renewals with the tenant. Doing this can leave a tenant in limbo.
What Are a Landlord’s Rights with a Holdover Tenant in Texas?
Landlords have two primary options. They can accept rent. Then, that will convert the tenant into an at-will, month-to-month tenant. In this case, either party can terminate the agreement with at least 30-days’ notice (unless the original lease or town regulations say otherwise).
Alternatively, they can refuse rent and issue a notice to vacate. Then, if the tenant doesn’t move out within the time provided, they can move forward with the legal eviction process.
Can a Landlord Evict a Holdover Tenant?
Yes! In Texas, landlords can evict a holdover tenant who stays without permission or stops paying rent. However, they must follow the proper legal process. Typically, landlords must give the tenant a three-day notice to vacate, but it could vary based on local ordinances or the original lease agreement. If the tenant fails to move out within the legally required timeframe, the landlord can file a forcible detainer eviction lawsuit in court. Then, if the court rules in the landlord’s favor, the tenant has five days to vacate voluntarily. If they still refuse to leave, the landlord can request a Writ of Possession. This lets law enforcement remove the tenant and their belongings from the property.
What Are a Tenant’s Rights as a Holdover Tenant in Texas?
Even after a lease expires, holdover tenants still have rights. While local ordinances vary, in most of Texas, landlords must give a three-day notice to vacate. They must do this before filing for eviction. Of course, all this only applies if the original lease agreement doesn’t say otherwise.
Also, regardless of location, landlords cannot change locks, shut off utilities, or forcibly remove tenants without a formal court order. By the same token, holdover tenants have the right to a habitable living space, one that is safe and healthy to live in.
Finally, they have the right to get a detailed breakdown of any security deposit deductions, and to get any leftover amount within 30 days of moving out. So, these are all rights to remember.
How Bay Property Management Group Can Help
A holdover tenant is someone who stays in a rental unit after their lease expires without signing a new agreement or receiving landlord approval. However, their tenancy may transition to month-to-month if the landlord accepts rent. Landlords can either continue the tenancy or refuse rent and issue a notice to vacate. Then, the tenant may get evicted if they do not comply.
That said, all this uncertainty around lease terms, legal requirements, and eviction procedures can be exponentially stressful. That’s where we come in. At Bay Property Management Group, we simplify the process for landlords and tenants alike. Our team can iron out clear, written lease agreements and make sure all parties are staying compliant with Texas and local regulations. This way, everyone’s rights and needs are protected and respected. Contact us today to learn more about our services.
