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Health Law Highlights

Importance of Negotiating Holdover Provisions in Health Care Leases

Summary of article from Epstein Becker & Green, by Zlata Fayer, Allison Zangrilli:

Negotiating holdover provisions, clauses that account for situations when a tenant remains in the property after lease expiration, is crucial in health care leases. Tenants who fail to vacate on time face holdover rental rates which can be up to double the agreed monthly rent. Therefore, tenants should negotiate these provisions to ensure a reasonable holdover rental rate. They may also aim for a grace period with an unchanged base rental before the holdover rate comes into effect. This negotiation can help tenants limit their liability in unforeseen circumstances that prevent them from vacating the premises on time.