“Hold Over Amount” ?

[Jerraill Murphy]

So Im a new landlord and I’m generating a brand new lease agreement but have no idea what “Hold Over Amount” means in the contract? Could someone please explain.

Thanks!

[Nathan Gesner]

Tenant is supposed to move out September 30th but doesn't move out until October 3rd. This means the tenant is a "holdover" for three days of October. Because this holdover can affect you and any incoming Tenant, there should be a penalty in the lease.

My lease states they will be charged 3x the ordinary monthly rent, prorated per day, continuing through the day the property is returned to me. Example:

Rent is $1,000 a month. I multiply that times three and then divide by the number of days in the month to create a daily holdover fee:

$1,000 x 3 = $3,000

$3,000 / 31 = $96.77

$96.77 x 3 days = $290.31