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  1. #1
    Join Date
    Dec 2008
    Posts
    1

    Default Holdover Agreement vs Higher Rent Amount

    My question involves landlord-tenant law in the State of: (Virginia) I had 21days of a 5 year lease agreement left before it was set to expire (12/31/08) when my landlord came in with a rent increase notice, effective 1/1/09. She had previously delivered a notice of increase to a business in the unit next to mine (strip mall) but that notice was delivered in August, 2008. His lease was due to expire on the same date as mine. He chose not to renew. I heard nothing at that time and the landlord subsequently stopped in my office in October expressing her wishes that we would stay on, all without any notice of an increase. Now with only three weeks left on the lease, she delivered an increase notice.

    Being a doctors office, it would take much longer to ready the practice for a move. I feel it is unreasonable to give such a notice in that short a time period.

    In addition, there is a holdover clause in my lease that states: If Tenant remains in possession of the Demised Premises or any part thereof after the expiration of the term of this lease with the Landlord's acquiescence and without any written agreement of the parties, Tenant will be treated as a holdover Tenant on a year to year basis using the above increase in rents due. That increase amount is 3%

    My contention is that there wasn't sufficient notice given to cause me to not be treated as a holdover tenant and since the lease stipulates on a year to year basis, that would make it good for another year.

    Any problems with that assumption? I would appreciate your help and advice.

    drjpt
    Lynchburg, Va

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,635

    Default Re: Holdover Agreement vs Higher Rent Amount

    You could try staying on as a holdover tenant, formally abandoning your tenancy and insisting upon the 3% rent increase, but I don't see why your landlord couldn't summarily evict you.

    Your story highlights the reason why commercial tenants often negotiate a series of options to renew their leases, with fixed increases. (If the agreement fixes a rent increase above market, you can attempt to negotiate a new lease or rent amount instead of renewing; but as long as you hold an option your landlord can't impose a ridiculous rent increase or boot you out unless you wish to move.)

    Remember that commercial tenants have only a fraction of the protections offered to residential tenants.

    Try negotiating something with your landlord. And run your situation past your business lawyer.

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