My tenant's one year lease expires on October 15, 2018. They have requested to extend their occupancy on a month to month basis with a 60 day notice to vacate( for both them and myself). I'm comfortable with that.

How do I handle their last month's rent which I am holding? Do I apply it towards their last month under the existing lease or do I hold it and apply it towards the last months when I'm given the 60 day notification?

Thank you

Hold it toward last month, the lease terms should still be in force, merely the terms of month to month, which can be added with just a short statement signed by both.

Thank you for your response. Just to be clear are you suggesting that I hold it for the last month of the 60 day notice or apply it towards the last month under the existing lease which is coming up.

Greatly appreciate your input!