Holdover Tenant

One of the worst fears Maryland landlords have is thinking that their tenants will leave before their fixed term is over. However, at times, tenants may choose to continue staying even after their lease expires. In most cases, it's a landlord's mistake to let said tenant stay without renewing their lease.

A holdover tenant is one that has stayed beyond their lease period. If a landlord continues accepting rent payments from the holdover tenant after the lease agreement expires, the tenancy will continue and will automatically become month-to-month. The tenant can continue renting the property at the same terms and conditions as the previous lease without a new lease being created.

In today’s blog, we’ll provide answers to commonly asked questions regarding holdover tenancies for landlords.

What Issues Can Arise in a Holdover Tenancy?

A number of issues can arise by letting your tenant continue renting your property after their lease is up. They are as follows.

• Laws for holdover tenants and actions taken for other landlord-tenant disputes aren’t the same. Therefore, make sure you have familiarized yourself with the local laws.
• Getting rid of a holdover tenant isn’t simple. You’ll have to go through Maryland eviction process to get rid of them, which can take you anywhere between three and five months. It can also take longer if the holdover tenant files an appeal or requests a continuance of the lease.
• You won’t have control over when there is a tenancy. The holdover tenant could choose to move out at a time when finding a tenant may not be easy, leaving you with a vacancy.
• There is a risk of property damage. Generally speaking, the more a tenant stays renting a property, the more property damage they cause.
• You may not be able to change the terms of the lease, such as raising rent for as long as the tenant stays.

What Should a Landlord Do When Dealing with a Holdover Tenant?

As a landlord, there are two ways in which you may be able to handle holdover tenants.

Firstly, you may choose to allow the tenant to rent after their lease expires. If you’ve had a great tenant, it may be worthwhile to let them continue renting the property. All you’ll have to do is allow them to continue to pay rent for the tenancy to hold.

Secondly, you may choose to remove them from your rental property after their lease is up. As per the Maryland eviction process, landlords have a legal right to evict a tenant for the following legitimate reasons.

• Failure to pay rent and lack of payments
• End of lease
• Absence of a lease
• Violation of the lease

Each of these reasons requires that landlords follow a specific eviction process. When it comes to evicting a holdover tenant, the following is a step-by-step process that you must follow for the eviction process to be successful.

Step 1: Serve the tenant with an appropriate eviction notice

Since a holdover tenant will technically be in a month-to-month tenancy, landlords must serve the holdover tenant with a 30-Day Notice to Quit to end the tenancy. This eviction notice will allow the tenant a maximum of 30 calendar days to move out. If the tenant fails to move out by the end date, you can continue with the process.

Step 2: File a lawsuit in the District Court

This is the next step landlords must take in a Maryland tenant eviction process. You must file a complaint in the District Court where your rental unit is located. This will cost you about $46 in fees.

Next, after successful filing, the court will issue the landlord with a copy of the summons and complaint. This will need to be served to the tenant by either a sheriff or constable before the day of the hearing.

Step 3: Attend the court hearing

Except for hearings involving failure to pay rent issues, Maryland eviction laws don’t specify when a hearing will be held for other types of eviction lawsuits.

Make sure to bring as much evidence to the court as possible, including a copy of the lease agreement. With the holdover tenant not having a contractual lease agreement, the judgment in the eviction lawsuit will most likely tilt in the landlord’s favor.

Step 4: Eviction of the tenant

Once the judgment is in the landlord's favor, the court will issue them with a Writ of Restitution. This will be the tenant’s final notice to leave the rental unit. The writ affords them an opportunity to remove their belongings before being forcibly removed by either the sheriff or constable.

You’ll have a maximum of 60 days to order the writ from the judgment date or else it could expire.

What Must a Landlord Not Do When Evicting a Holdover Tenant in Maryland?

In Maryland, the only way you can evict a tenant is by obtaining a court order. Trying to evict a tenant in any other way will automatically fail and the tenant may even sue you for damages. The following are examples of eviction tactics that you must not engage in.

• Using “self-help” eviction tactics. No matter the situation, you must not try to remove a tenant and end the lease by shutting off their utilities, changing the locks, or removing their belongings. The tenant must always be safe.
• Evicting a tenant for retaliatory reasons. It’d be illegal for you to try to remove the tenant as retaliation for exercising a legally protected right. For instance, because of their participation in a tenants’ rights organization, filing a lawsuit against you, or complaining to local authorities about habitability violations.
• Evicting a tenant because of their race, religion, sex, color, nationality, disability, or familial status. Maryland fair housing laws require landlords to treat their tenants fairly and equally regardless of such classes.

How Can Landlords Avoid Holdover Tenants?

You may be able to avoid holdover tenants by doing the following.

• Remind your tenant of the date at which their lease is coming to an end. Advisedly, give this notice at least 60 days before the lease is set to expire.
• Send them another notice at least 3 weeks before the end of the lease reminding them of the move-out requirements
• Once a tenant overstays the term of the lease, don’t accept rent payment. Allowing them to continue to pay rent will grant them legal authority to continue staying past the expiry of the lease.

Bottom Line

Now you know everything there is to know about holdover tenants in Maryland. If you have questions about your lease agreement or need expert help in managing your rental property, McKenna & Vane Property Management can help.

We’re one of the best property management companies in Maryland. Get in touch to learn more!