Also known as: use & occupancy · use and occupation · U&O · use and occupation clause
Written by attorneys · grounded in primary & secondary sources — see below
Compensation owed to a landlord or incoming tenant by a tenant who remains in possession after the lease term ends. The amount equals the prior rental rate unless the landlord or incoming tenant independently proves a different reasonable value for the holdover period.
Ursula Upton leased her barn and bunkhouse to Upstream Petroleum through March 31 at a set monthly rent. Upstream stayed in possession and continued operations through April even after Ursula had already leased the same facilities to Unity Capital beginning April 1. Ursula and Unity Capital may recover from Upstream for the April use and occupation at the prior rent or at a separately proven reasonable value.
Vertex Manufacturing held over after its warehouse lease with Owner Olivia expired on June 30. Vertex continued storing inventory through July while Olivia had already contracted to lease the space to a new tenant at a higher rate. Olivia and the incoming tenant may recover use and occupation damages from Vertex at the prior rent or at the proven reasonable value shown by the new lease.
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The default measure is the prior rental rate. The landlord or incoming tenant may instead recover a different reasonable value if that amount is independently established by proof such as a new lease or market data.
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No. The lack of a new writing does not eliminate liability. The holdover tenant must still pay for use and occupation at the prior rate or proven reasonable value.
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Recovery may exceed the prior rate only when the landlord or incoming tenant supplies independent proof that reasonable value is higher. A new lease at a higher rent can serve as that proof if it reflects genuine market conditions for the property in its current state.
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An incoming tenant whose possession is delayed by the holdover may join the landlord in seeking recovery. The incoming tenant may also hold the election right to treat the holdover as creating a new term when the original landlord has already leased the premises to that incoming tenant.
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…as "inland navigation and transportation, inland marine, sprinkler leakage, explosion, windstorm and tornado, extended coverage, use and occupancy, and riot and civil commotion insurance." [^maj-2]: The pertinent provisions of §§ 1 and 2 of the Act of July 2, 1890, 26 Stat. 209, as amended, 15 U.S.C. §§ 1 and 2, commonly known as the…