Also known as:relet for tenant's account · reletting on tenant's account · relet on tenant's account · reletting · tenant account relet
Written by attorneys · grounded in primary & secondary sources — see below
A landlord remedy under which the landlord relets abandoned premises as the tenant's agent. The landlord must notify the tenant of the election to relet for the tenant's account. This election relieves the tenant of future liabilities under the lease to the extent the new tenancy performs the obligations on reasonable terms.
Sources & Authorities
How it applies
Common Examples
2
Landlord Notifies Tenant of Reletting
Roberto Reyes abandoned his storefront after six months. The landlord notified Reyes in writing that it would relet the space for Reyes's account. The landlord found a new tenant at the same rent within two months. Reyes owes only the accrued rent through the date of reletting.
Reletting Reduces Tenant Liability
Rowan Russell vacated a warehouse and stopped paying rent. The landlord relet the space for Russell's account at a lower monthly rate. Russell remains liable for the rent differential between the original and new leases plus any accrued amounts before the new tenancy began.
Select any source to read its text and confirm it supports the definition.
Restatements
Study Supplements
Kendall v. Ernest Pestana, Inc.40 Cal. 3d 488, 709 P.2d 837
Common questions
Frequently Asked
3
What must a landlord do to elect reletting for the tenant's account?+
The landlord must notify the tenant that it will relet the premises for the tenant's account. This election limits the tenant's future liability to the extent the new lease performs the obligations on reasonable terms.
Supporting sources
Does reletting for the tenant's account terminate the original lease?+
No. The original lease remains in effect. The tenant's liability continues for any shortfall in rent and for obligations that accrued before the new tenancy begins.
Supporting sources
What damages can the landlord still recover after reletting for the tenant's account?+
The landlord recovers rent due before the new tenant took possession plus any difference if the new rent is lower. The tenant is relieved only to the extent the new lease performs the obligations.
Supporting sources
40 Cal. 3d 488, 709 P.2d 837Property
…could only recover, in the event of the lessee's breach, that amount of damages which the lessor could not reasonably avoid by reletting the premises. Since the statutory scheme would be frustrated if the lessor could first contract to shift the duty of mitigation onto the lessee and then block the lessee's attempts to…