Termination of Tenancy Agreements

Leasehold Estates: Expiration and Renewal

A leasehold estate is a temporary right to possess real property granted by a landlord (lessor) to a tenant (lessee). These arrangements are governed by the terms outlined within a tenancy agreement. The agreement specifies a defined term, upon which the estate terminates. Understanding the implications of termination is crucial for both parties.

Potential Outcomes Upon Tenancy Agreement Conclusion

Vacation of the Premises: The tenant is obligated to surrender possession of the property to the landlord in substantially the same condition it was received, barring reasonable wear and tear. All personal belongings must be removed.
Renewal or Extension: The existing accord may contain options for renewal or extension. These options often require advance notice to the landlord within a specified timeframe. If exercised correctly and agreed upon by both parties, the occupancy can continue under the terms of the original or a renegotiated agreement.
Holdover Tenancy: Should the tenant remain in possession after the expiration of the term without a formally executed renewal or extension, a holdover tenancy is created.
Creation of a New Tenancy: The parties may negotiate and execute a new agreement that is separate from and potentially supersedes any previous understandings.

Holdover Tenancy: A Deeper Look

Types of Holdover Tenancies

The type of holdover arrangement depends on state law and the actions of the landlord. State law determines the length of the new term.

Tenancy at Sufferance: Created solely by the tenant remaining in possession without the landlord's consent. The landlord can pursue eviction at any time.
Periodic Tenancy: A landlord may accept rent payments after the initial term, which may be construed as establishing a periodic tenancy. The duration of the periodic tenancy (e.g., month-to-month) depends on how rent is paid or state statutes. This requires proper notice to terminate.

Landlord's Options with Holdover Tenants

A landlord typically has options, including: treating the tenant as a trespasser and initiating eviction proceedings, or consenting to the tenant's continued occupancy, potentially creating a new tenancy agreement.

Eviction Process Following Termination

If the tenant fails to vacate after proper notice (or at the cessation of the original agreement, assuming no proper holdover or renewal agreement is in place), the landlord must typically pursue legal eviction proceedings to regain possession. These proceedings are governed by state and local laws and require proper legal notice and court action.

Responsibilities Regarding Property Condition

Upon surrendering the premises, the tenant is generally obligated to leave the property in a clean and undamaged condition, consistent with the "wear and tear" clause defined in most agreements. The landlord will inspect the property for damage and may use the security deposit to cover repairs beyond normal wear and tear.

Security Deposit Return

Landlords are generally required to return the security deposit to the tenant within a specified timeframe, less any deductions for damages beyond normal wear and tear or unpaid rent. An itemized list of any deductions must usually be provided to the tenant.