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If a tenant breaks a lease, the landlord can mitigate their damages by continuing to charge the tenant rent until theyâre able to re-rent the unit. If a landlord has to re-rent the unit at a lower amount than what is stated in the lease, the tenant can be charged the difference for the remainder of the lease period.
Having the clause lets both parties know what will happen.â. A holdover clause can be overlooked for a number of reasons. Notably, tenants may not realize that their obligation to vacate the space after the lease term expires is as critical an obligation as paying the rent.