Legal Obligations of Landlords to Mitigate Damages After Tenant Breach

Sometimes, Tenants abandon or vacate their leased property before the end of their lease term. This could be because of necessity or a conscious decision to breach their lease and suffer the consequences.

Forced with such a problem and the resulting loss of rental income, landlords are still required to minimize and mitigate their damages to try their best to find a new renter for the space. This obligation applies even when the tenant vacates the premises without giving notice of a break in the lease. During the balance of the lease term, the landlord cannot passively collect rent from the previous renter. Instead, they must try to find a new tenant to reduce their losses.

Landlords have several options for minimizing their losses, such as:

1. Going to promote the property: The landlord should start advertising their property as soon as possible using internet directories, print publications, and any other channels at their disposal.

2. Allowing prospective tenants to view the property: The landlord must allow prospective tenants to view the property.

3. Tenant screening: To make sure potential tenants are eligible to lease the property, the landlord should examine their credit and background.

4. Reducing the rent: If the market demands it, the landlord might think about reducing the rate to make the property more alluring to potential tenants.

5. Providing incentives: To get potential tenants to sign a lease, the landlord may provide incentives like a rent discount or other concessions.

6. Scheduling the move-in and move-out dates with the previous tenant can help ensure a smooth transition and reduce any gaps in rental income.

The obligation to limit damages is critical because it prevents landlords from getting profit from a tenant's lease violation. Landlords are required by law to limit their losses, and if they don't, the judge may reduce the amount of damages they are awarded.

Also, the requirement to mitigate damages contributes to the smooth operation of the rental market. The landlord can ensure that the property is occupied and lessen the impact of the prior tenant's breach on the neighborhood rental market by swiftly re-renting a unit.