A legal battle has intensified between a California-based real estate software company and its former Colorado landlord over nearly a quarter-million dollars in rent payments. Yardi Systems, Inc. initially sued Hoehn Management Group to recover what it claims were accidental payments, but the landlord has now filed a countersuit, alleging the tech firm was a holdover tenant and actually underpaid its rent.
The dispute centers on a commercial lease at the Highland Place I office building in Centennial, Colorado. Hoehn Management Group, the property owner, is now seeking approximately $75,000 in what it claims is unpaid rent, directly contradicting Yardi's lawsuit which demands a refund of $239,930.
Key Takeaways
- Real estate tech firm Yardi Systems sued its former landlord, Hoehn Management, to recover $239,930 in alleged accidental rent payments.
- Yardi claims it continued paying nearly $15,000 per month for 16 months after its lease ended in October 2023.
- Hoehn Management has countersued, claiming Yardi never fully vacated the premises and became a holdover tenant.
- The landlord asserts Yardi owes a higher holdover rent rate, totaling nearly $315,000, and is suing for the $75,000 difference.
Yardi Systems Alleges Costly Payment Error
The conflict began in August 2025 when Yardi Systems, a company that develops property management software, filed a lawsuit against Hoehn Management Group. According to the initial complaint, Yardi's lease for its office at 8085 S. Chester St. concluded in the fall of 2023.
Despite the lease termination, Yardi states that due to an internal oversight, it continued to send monthly rent checks. The company claims it mistakenly sent payments of $14,996 each month from November 2023 through February 2025.
Disputed Payments by the Numbers
- $14,996: The monthly amount Yardi claims it paid by mistake.
- 16 Months: The duration of the alleged accidental payments.
- $239,930: The total amount Yardi is seeking to have refunded.
The lawsuit details that Yardi discovered the error in March 2025 and subsequently requested a full refund. The complaint also includes a claim for an additional $10,000 for office furniture that Yardi alleges Hoehn Management had agreed to purchase but never paid for.
"While Yardi correctly did not send payment in October 2023, it, due to inadvertence, sent payments to Hoehn each month from November 2023 to February 2025," the company's lawsuit stated. It further noted that, "Each inadvertent payment was endorsed by Hoehn, deposited into its account, and subsequently cleared."
When the landlord denied the refund request, Yardi proceeded with legal action to recover the funds. Attorneys representing Yardi Systems from the law firm Womble Bond Dickinson have declined to comment on the ongoing litigation.
Landlord Rejects Claim and Files Countersuit
In a response filed on September 18, 2025, Hoehn Management Group presented a starkly different version of events. The landlord firmly denied that the payments from Yardi were accidental and rejected the tech company's entire premise for the lawsuit.
Instead, Hoehn Management, which is owned by Jonathan Hoehn, argues that Yardi never officially vacated the office space at the end of its lease. According to the countersuit, Yardi's furniture and equipment remained on the property, which legally classified the company as a holdover tenant.
What is a Holdover Tenant?
In commercial real estate, a holdover tenant is a lessee who remains in possession of a property after their lease has expired. Leases often contain a "holdover clause" that specifies a much higher rent, frequently 150% to 200% of the original rate, to discourage tenants from overstaying and to compensate the landlord for potential damages.
The Dispute Over Rent Calculation
Hoehn Management's legal filing states that as a holdover tenant, Yardi was obligated to pay a higher monthly rent. The landlord claims the correct holdover rate was $22,493 per month, significantly more than the nearly $15,000 Yardi was paying.
The landlord's claim covers the period from October 2023 to November 2024, when they assert Yardi was occupying the space. Based on this higher rate, Hoehn Management calculates that Yardi should have paid a total of nearly $315,000 for that period.
Since Yardi paid approximately $240,000, the landlord is now countersuing for the difference, which amounts to about $75,000. Hoehn Management also denies that there was ever an agreement to purchase Yardi's office furniture.
"Defendants deny any payments made by (Yardi) were due to inadvertence," Hoehn Management wrote in its legal response.
Legal Teams and Next Steps
The case highlights the critical importance of clear communication and formal procedures at the end of a commercial lease term. The central question for the court will be to determine Yardi's status after October 2023: was it a former tenant making an administrative error, or a holdover tenant underpaying its rent?
Yardi Systems is represented by attorneys John Hawk IV, Tyler Owen, and David Berkley with the Denver and California offices of Womble Bond Dickinson. Hoehn Management Group is represented by Michael Connolly of the Connolly Law Firm in Lone Tree, Colorado.
The legal proceedings will now move forward, with both sides expected to present evidence supporting their interpretation of the lease agreement and the events that followed its supposed termination. The outcome will depend on whether Yardi can prove the payments were truly accidental and that it had fully surrendered the property, or if Hoehn Management can substantiate its claim of a holdover tenancy.
