😀
Real Property • Landlord-Tenant
PROP#077
Legal Definition
A landlord may bring an unlawful detainer action to evict a tenant, or sue for rent. If the tenant unjustifiably abandons, the landlord has a duty to mitigate by seeking to re-let the space, and the tenant's liability will be based on if the landlord accepted the surrender. If there is no surrender, the tenant is liable for damages, but if there is a surrender the tenant is free from post-abandonment rent liability.
Plain English Explanation
If a tenant doesn't pay rent, a landlord can either sue for rent or sue to evict, or both.
What happens if a tenant abandons their lease? Well, what is "abandonment"? Abandonment happens when a tenant walks away from their leased property, gives up possession of it, and makes it known to the landlord. This last part is important, because if a landlord isn't aware that the tenant has abandoned the property, they don't have an opportunity to try to find a new tenant and reduce potential losses.
Thus, if a tenant decides to abandon their lease, a landlord still has the right to sue for rent owed, however they also have a duty to "mitigate," which means they have to try to find someone else to take over the apartment to reduce the amount of time the property would be without a tenant. The landlord then has a right to recover any lost revenues for months they were unable to find another tenant.
Finally, something to be mindful of is "surrender." Surrender occurs when a landlord accepts a tenant's abandonment. In other words, surrendering the property is asking the landlord for permission to abandon the property and lease. If the landlord accepts, then the tenant is off the hook for any rent they would have owed under the lease in the future.
What happens if a tenant abandons their lease? Well, what is "abandonment"? Abandonment happens when a tenant walks away from their leased property, gives up possession of it, and makes it known to the landlord. This last part is important, because if a landlord isn't aware that the tenant has abandoned the property, they don't have an opportunity to try to find a new tenant and reduce potential losses.
Thus, if a tenant decides to abandon their lease, a landlord still has the right to sue for rent owed, however they also have a duty to "mitigate," which means they have to try to find someone else to take over the apartment to reduce the amount of time the property would be without a tenant. The landlord then has a right to recover any lost revenues for months they were unable to find another tenant.
Finally, something to be mindful of is "surrender." Surrender occurs when a landlord accepts a tenant's abandonment. In other words, surrendering the property is asking the landlord for permission to abandon the property and lease. If the landlord accepts, then the tenant is off the hook for any rent they would have owed under the lease in the future.
Hypothetical
Hypo 1: Amy rents an apartment from Bob for $500 per month and signs a lease for 6 months. After 2 months, it is clear that she can no longer afford the rent. She packs her things, leaves the property, and lets Bob know she is abandoning her lease. Even though the rental market is hot and there is a lot of interest in Amy's apartment, Bob decides to do nothing out of spite. For 3 months, the apartment stays empty and Bob continues to try to collect rent from Amy. After 6 months, Bob finds a new tenant and sues Amy for the 3 months of rent she owes him. Result: Though Amy does owe for the 3 months she did not pay rent on her lease, she can argue that Bob committed a failure to mitigate. In other words, Amy can argue that Bob could have easily found another tenant to pay $500 per month, but he didn't even try. Here, the law will side with Amy. Though the law wants tenants to pay their obligations, they don't want to encourage inefficiency in the market by allowing landlords to be lazy and not at least try to reduce their losses.
Hypo 2: Amy rents an apartment from Bob for $500 per month and signs a lease for 6 months. After 2 months, it is clear that she can no longer afford the rent. She packs her things, leaves the property, and lets Bob know she is abandoning her lease. Bob immediately begins looking for a new tenant. He posts ads online and hangs a sign outside the apartment that says "For Rent." After 2 months, Bob is able to find a new tenant who takes over the lease for $500 per month. Bob sues Amy for 2 months of rent owed. Result: Bob will win. Here, Bob tried to mitigate his losses by looking for a new tenant, which he found. However, he was unable to find a new tenant immediately and the apartment sat empty for 2 months during Amy's lease. Thus, Amy must pay for those 2 months of rent.
Hypo 2: Amy rents an apartment from Bob for $500 per month and signs a lease for 6 months. After 2 months, it is clear that she can no longer afford the rent. She packs her things, leaves the property, and lets Bob know she is abandoning her lease. Bob immediately begins looking for a new tenant. He posts ads online and hangs a sign outside the apartment that says "For Rent." After 2 months, Bob is able to find a new tenant who takes over the lease for $500 per month. Bob sues Amy for 2 months of rent owed. Result: Bob will win. Here, Bob tried to mitigate his losses by looking for a new tenant, which he found. However, he was unable to find a new tenant immediately and the apartment sat empty for 2 months during Amy's lease. Thus, Amy must pay for those 2 months of rent.
Visual Aids
Related Concepts
How do lease covenants affect a landlord-tenant relationship where one party breaches?
How may a landlord waive a covenant prohibiting assignment?
If a leasehold is condemned or taken via eminent domain, what is the effect on a tenant's duty to pay rent?
If an assignment occurs, what is the relationship between the assignee and the landlord?
If a tenant violates a covenant against assignment or sublease, what remedies are available to the landlord?
In a landlord-tenant relationship, who has a duty of restoration when the premises being leased are destroyed due to no fault of either party?
In assessing a landlord's tort liability, what six duties does a landlord have to make the premises safe?
In assessing a landlord-tenant issue, what is an assignment?
In assessing a landlord-tenant relationship, what are the landlord's duties?
In assessing a landlord-tenant relationship, what are the tenant's duties?
In assessing a landlord-tenant relationship, what is the result of a tenant's covenant to repair?
What are the exceptions to the hold-over doctrine?
What constitutes a constructive eviction?
What constitutes an actual eviction?
What constitutes a partial eviction?
What is a landlord's duty to deliver possession?
What is a landlord's duty to provide quiet enjoyment?
What is a landlord's duty to repair?
What is a leasehold estate?
What is a periodic tenancy and how does it terminate?
What is a retaliatory eviction?
What is a sublease?
What is a tenancy at sufferance and how does it terminate?
What is a tenancy at will and how does it terminate?
What is a tenancy for years and how does it terminate?
What is a tenant's duty to not use the premises for an illegal purpose?
What is a tenant's duty to pay rent, and how does it affect their security deposit?
What is a tenant's duty to repair?
What is the hold-over doctrine?
What is the implied warranty of habitability, and what remedies are available to the tenant if breached?
When does a covenant run with the land?
When does a tenant cause ameliorative waste?
When does a tenant cause permissive waste?
When does a tenant cause voluntary waste?