General holdover question
I have read several posts here on the topic of holdovers as well as researched the idea elsewhere. Based on your advice (Nathan) I think I'll be adding the criteria that holdovers will be charged at 4X normal prorated daily including the day the keys are retuned.
What I'm not sure about is the situation where a tenant does leave the property, but the property in a poor condition such as filled with trash, or excessively dirty, or in need of repairs and the like. Lets say it takes you 3 days to get a crew in there to clean it up or it takes you 4 days to have a handyman to get it fixed up... or even just 1 day. Maybe they screwed up your new flooring and that takes 2 weeks to get a repair scheduled and performed. Do you charge something like a holdover fee for the loss of use you incurred while diligently getting the unit rehabbed? I'm not talking about routine wear and tear repairs or typical cleaning I always seem to have to do, but something that is clearly above and beyond an expected return condition. Do you suck it up? Do you charge for lost rent? Do you only charge for repairs / cleaning and not lost rent? Or otherwise? Any suggestions or a text blurb to consider for the contract are appreciated. Thanks!
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
Aloha,
You first need to check local law, as that will tell you what holdover rate is allowed. States I am familiar with only allow 2X rent.
What does your Rental Agreement state regarding move out procedures/requirements, and what does local law allow? Be sure you have proper documentation and good pics of move in condition and move out.
Quote from @Chris B.:
A holdover Tenant is one that remains on the property after lease expiration. That's different.
Let me make sure I understand your question.
If a Tenant trashes your property and it takes three weeks to clean and repair before you can market it to another renter, can you charge the Tenant for the three-week delay? No.
You can charge for the cost of cleaning and repairs, but you cannot charge the Tenant rent for the days you are working on the rental.
Thanks, that was the intent of my question. Easy answer. Regarding the actual holdover fees, I'll check local laws to see if there are any rules around this.