Commercial Office Holdover Fees

 Hi Prospects & Friends!

When one leases a commercial office space, a key factor to know upfront is understanding holdover fees. If you're not familiar with holdover fees they will be explained in this post. Majority of landlords want to recoup their rent costs if you stay beyond your lease with a expired one or even not moving out on time if don't renew. What happens is holdover fees will generate against you coupled with even one months rent and you will be responsible for these fees. Example would be Mary's lease expired June 30, she doesn't renew and didn't move out in an timely manner out of her office space, and moved out July 2. The landlord sends her the July statement and she explodes when she sees her rent being charged as a holdover fee for July and another charge for Julys rent. Mary assumed 2 days wouldn't be a issue since the movers came late, but she didn't realize her landlord didn't view this as a simple just 2 days over. Best thing to do in cases like this in commercial office leases are if not going to renew;

• Contact your property manager and let them know well in advance your not renewing, as well as send them an email stating this along with the pictures showing your space is vacant when it's empty by your expiration date.
• Make sure you don't slip past your expiration date by even 2 days, it will cost you holdover fees and another rent payment.
• Don't damage the space while moving out, this will cost you the security deposit as well as holdover fees if the landlord thinks you did this neglectly. 

So if you apply these key factors against your commercial office lease move, you won't have any issues and will even walk away with a payment "your security deposit".