/res-tuh-TOO-shuhn for yoos and ok-yuh-PAY-shuhn/·doctrine
Also known as:restitution for use & occupation · use and occupation
Written by attorneys · grounded in primary & secondary sources — see below
A remedy by which a landlord or incoming tenant recovers from a tenant who holds over after lease termination the reasonable value of the premises during the holdover period. The measure is the prior rental rate unless a different reasonable rental value is independently established.
Sources & Authorities
How it applies
Common Examples
2
Holdover After Commercial Lease
LuxeMall leased a storefront to LuxeThread Boutique at eight thousand dollars monthly with the term ending December thirty one. LuxeThread remained in possession through February without consent and blocked TrendNation from taking possession under its new lease. LuxeMall sued for the value of the use during the two month holdover. The court awarded recovery at the prior eight thousand dollar rate because no independent proof established a higher reasonable value.
Holdover Blocking Incoming Tenant
Gerard leased a fenced yard to Elm Framing at two thousand dollars monthly with the term ending June first. Elm Framing continued storing equipment for three weeks after termination and prevented Gerard from delivering possession to Liberty Development under its new lease at thirty five hundred dollars monthly. Gerard and Liberty sued for use and occupation during the holdover. The court limited recovery to the prior two thousand dollar rate because no independent market evidence showed a higher reasonable value for the property.
Put it into practice
Test Yourself
9
Practice Questions5
· 4 sources
Select any source to read its text and confirm it supports the definition.
Restatements
Hornbooks
Raven Red Ash Coal Co. v. Ball184 Va. 534, 39 S.E.2d 231 (1946)
Common questions
Frequently Asked
4
What measure of recovery applies when a tenant holds over after lease termination?+
The landlord or incoming tenant recovers the reasonable value of the premises during the holdover period. Recovery is measured by the prior rental rate unless the claimant proves a different reasonable rental value by independent evidence.
Supporting sources
Does a new lease at a higher rent automatically establish the reasonable value for holdover recovery?+
No. The new lease supplies evidence of market value but does not control unless the claimant proves that the higher figure reflects the reasonable rental value of the premises for the holdover tenant's use. Independent proof is required to depart from the prior rate.
Supporting sources
Can an incoming tenant recover for use and occupation from the holdover tenant?+
Yes. The rule expressly permits an incoming tenant whose possession is blocked to recover from the holdover tenant for the value of the use during the holdover period at the prior rent or proven reasonable value.
Supporting sources
Is eviction required before a landlord may recover for use and occupation?+
No. Liability arises from the tenant's wrongful retention of possession after the lease ends. The landlord may seek both possession and monetary recovery for the holdover period without first completing an eviction action.
Supporting sources
Real PropertyOwnership of real property · Landlord-tenant lawNEXTGENFoundational