Also known as:relet on the tenant's account · re-letting on tenant's account · relet on tenant account · reletting · re-let
Written by attorneys · grounded in primary & secondary sources — see below
A landlord remedy by which the landlord, after notice to an abandoning tenant, relets the premises for the tenant's account. The action reduces the tenant's liability for future rent to the extent the new lease is performed on reasonable terms.
Sources & Authorities
How it applies
Common Examples
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Landlord Relets After Notice
Ryan Roberts abandoned his storefront lease with Riverfront Developments after six months. Riverfront sent written notice that it would relet the space on Roberts's account. When a new tenant took the premises at a reasonable rent, Roberts's obligation for future rent ended to the extent the new lease performed.
Mitigation Through Reletting
Renata Russo vacated her apartment mid-lease. The landlord located a replacement tenant after reasonable marketing efforts and credited Russo with the new rent received. Russo remained liable only for the gap between the original rent and the reasonable amount collected from the replacement.
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Restatements
Casebooks
Sommer v. Kridel378 A.2d 767
Reasonable Terms Required
Roger Ramirez abandoned commercial space leased from Ridgeway Partners. The landlord relet the premises on Ramirez's account but at a below-market rate without justification. Ramirez successfully limited his liability to the difference that would have existed under reasonable rental terms.
Kendall v. Ernest Pestana, Inc.40 Cal. 3d 488, 709 P.2d 837
Landlord Retains Possession Option
Roland Rhodes left his restaurant premises before lease end. The landlord chose to relet on Rhodes's account rather than accept surrender. After securing a new tenant on reasonable terms, the landlord recovered only the shortfall from Rhodes while the new lease performed.
Berg v. Wiley264 N.W.2d 145
Common questions
Frequently Asked
3
What notice must a landlord give before reletting on the tenant's account?+
The landlord must notify the tenant that it will undertake to relet the leased property for the tenant's account. This notice relieves the tenant of future liabilities to the extent the new lease is performed on reasonable terms.
Supporting sources
Does the landlord have a duty to relet after abandonment?+
The landlord has no duty to relet to mitigate the tenant's liability. The landlord may instead accept surrender or simply leave the premises vacant while pursuing accrued rent.
Supporting sources
How are damages measured when the landlord relets on the tenant's account?+
Damages equal the difference between the rent the original tenant agreed to pay and the rent received from the replacement tenant, plus reasonable costs of finding the new tenant and any lost rent during the search period.
Supporting sources
378 A.2d 767Property
…whether a landlord seeking damages from a defaulting tenant is under a duty to mitigate damages by making reasonable efforts to re-let an apartment wrongfully vacated by the tenant. Separate parts of the Appellate Division held that, in accordance with their respective leases, the landlords in both cases could recover…