What You Need to Know About Holdover Tenants in California

Tenants are supposed to leave the rental unit or sign a new rental contract when their lease ends, but what happens if they remain in the rental beyond the official term of the tenancy?  These so-called “holdover tenants” can continue to live on the property legally until you complete the necessary steps to evict them.

Who is Considered a Holdover Tenant?

A holdover tenant is someone who remains on the premises after the lease agreement has expired or after a valid notice to vacate expires. A holdover tenant is also known as a “tenant at sufferance” in many jurisdictions.

Acceptance of Rent Continues the Holdover Tenancy

If the landlord continues to accept rent payments from the tenant after the lease expires, the tenant can legally continue residing at the property.  In California, the original lease will convert to a month-to-month tenancy.

Essential terms of the Lease Apply to Holdover Tenancy

A holdover tenant must still follow the terms of the original lease unless a new lease is executed by the parties.  California courts have ruled that only the essential terms of the original lease carry over, however, such as the amount of rent and payment due date.

Landlords Can Raise the Rent for Holdover Tenants

A lease typically fixes the amount of rent a tenant must pay during the lease term. When the lease ends, landlords can increase the rent on a holdover tenant. California courts have found commercial rent increases of 150% to be enforceable, since the tenant could choose to leave the unit instead of paying the increased rent.

Notice Required to Evict a Holdover Tenant

In California, a landlord is required to give the holdover tenant a notice before formal eviction proceedings can commence.  If the holdover tenant has been residing at the premises for less than 1 year, a 30-day notice is required. For tenancies of 1 year or more, the landlord serves a 60-day notice.

At a minimum, the notice of termination should include (1) the reason for termination, the date that the tenant must vacate the property, and the consequences if the tenant fails to comply by the specified date (i.e. that legal action will be pursued against the tenant.)

Lawsuit Required to Evict a Holdover Tenant

Self help is prohibited.  To the contrary, if the holdover tenant remains at the premises after the notice expires, court action is required to evict.  This process involves serving the tenant with a summons and complaint, and completing a court trial if the tenant responds to the lawsuit.  If the tenant fails to respond no court hearing will be required and the court will enter a default judgment based on the filed documents.

If the court rules in favor of the landlord, a writ of possession will be issued. This writ allows the sheriff or marshal to physically evict the tenant.

Beware of “Just Cause” Eviction Laws

Many cities in California require “just cause” to evict, meaning a reason allowed by the applicable ordinance.  In those cities landlords cannot simply terminate the tenancy of a holdover tenant with a 30- or 60-Day Notice.  They will instead need a reason, such as nonpayment of rent, breach of the lease, etc.

Conclusion

As a landlord, dealing with holdover tenants can be a frustrating and time-consuming process.  Accordingly, it is essential to follow all the legal procedures to ensure a successful eviction. 

Lynx specializes in evictions, from start to finish.  We can be reached at 888-441-2355 or info@lynxlegal.com.  You can also schedule a telephonic consultation on our website to discuss your eviction issues.  Our experienced professionals are standing by to start your case or answer any questions you may have.