Holding over month to month

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Holdingover

Member
11 March 2020
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My 5 year commercial lease expired, as I was intending the business to sell and the new person to sign the new lease. Instead I am still here on a month to month term, as a default from the previous lease. The new lease requires me to pay $120,000 for the equipment in it, which I am not prepared to do. The new lease rent is not negotiable. My question is, how much rent should I be paying in this month to month situation? The old lease says it needs to be the same rent in the hold over period. Next question, How long can I hold over for? Neither the landlord or myself want to end the tenancy, and we are aware that one months notice can be given by either party to terminate the month to month situation. Can I stay on month to month indefinitely? How is the rent calculated? Previously it was CPI increases. Thanks
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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You haven't mentioned what state you're in - that can change things. My response is based on Queensland law.

All lease rent is negotiable. However, it may be that negotiation has to be by way of 'take it or leave it' and their willingness for you to walk.

If you're holding over under the terms of the previous lease, that lease will generally say what the holding over rent will be. I've seen it staying the same, and I've seen it increasing (often as an incentive to sign a new lease). The thing is, that's basically good for the 'month' it takes to give notice of a change. You or your landlord can terminate with appropriate notice. By the same mechanism, the landlord can raise the rent with appropriate notice. While you can stay on month to month indefinitely, there's no security of tenure for you or the landlord past that monthly period. There are pros and cons to that from both sides but, generally, landlords and tenants do like more certainty that that situation will give.
 

Holdingover

Member
11 March 2020
2
0
1
Thankyou Rob. I am in NSW. So he will no doubt raise the rent on me, and force a departure. I can now be prepared for that outcome. Thanks