Also known as: relets · reletting · re-let
Written by attorneys — see sources below.
An action by a landlord that leases abandoned premises to a new tenant. The landlord may undertake the reletting for the original tenant's account and thereby relieve that tenant of future liabilities under the lease to the extent the new lease performs the obligations.
Riley Rivera abandons the commercial space after six months. Reliance Insurance, the landlord, elects to leave the premises vacant and sues for accrued rent. Because the landlord has no duty to relet, the tenant remains liable for the full remaining rent.
Rhea Reynolds abandons the apartment mid-lease. The landlord notifies Reynolds that it will relet the unit for her account and finds a new tenant at the same rent. Reynolds is relieved of future rent liability to the extent the new lease performs.
Rosalind Reed vacates a retail storefront early. The landlord elects not to relet and sues for the full remaining term. Because the landlord has no duty to mitigate, Reed remains liable for all future rent under the lease.
Ralph Richardson abandons his apartment. The landlord elects to attempt reletting on Richardson's account and secures a replacement tenant. Richardson's liability is reduced only to the extent the new lease actually performs the obligations.
Raphael Rivera abandons the leased premises. The landlord relets without notifying Rivera it is acting on his account. Rivera remains fully liable because the landlord did not undertake the reletting for the tenant's account under the Restatement rule.
Ryan Roberts abandons the restaurant space. The landlord relets the premises on its own account without notifying Roberts. Roberts's future liability continues because the landlord did not relieve him by reletting for the tenant's account.
Under the Restatement approach, the landlord has no duty to attempt to relet the leased property to mitigate the tenant's liability. Many jurisdictions now impose a duty to mitigate by making reasonable efforts to relet.
Supporting sources
The landlord notifies the tenant that it will relet for the tenant's account. This relieves the tenant of future liabilities to the extent the new lease performs the obligations on reasonable terms.
Supporting sources
Reletting on the tenant's account reduces the tenant's liability by the rents received from the new tenant. If the landlord relets on its own account, it may constitute acceptance of surrender and end the original tenant's future rent obligation.
Reletting may constitute acceptance of the tenant's implied offer of surrender if the landlord acts for its own account. Conduct inconsistent with continuation of the original lease supports a finding of surrender.
…If the tenant defaulted, the lease gave the landlord the option of re-entering or re-letting, but stipulated that failure to re-let or to recover the full rental would not discharge the tenant’s liability for rent. : The trial court noted that damages had been erroneously calculated in the complaint to reflect…