LL-T Law - Termination of Leases

Question 1

What is a surrender?

Answer 1

A surrender terminates the lease agreement and ends the landlord-tenant relationship between both parties (releases both parties from their duties and obligations under the lease agreement).

A surrender occurs when:

1. A tenant returns possession of the leased premises to the landlord before the expiration of the lease;

AND

2. The landlord consents.

Question 1

What is an abandonment?

Answer 1

An abandonment occurs when the tenant unilaterally returns possession of the leased premises before the lease expires WITHOUT the landlord’s consent. Here, the tenant will have to continue paying rent until the landlord is able to find a replacement tenant. If the tenant refuses to pay rent, the landlord is entitled to damages for the difference between the original rent and the rent received from the replacement tenant.

Question 2

What is the duty to mitigate?

Answer 2

Under the majority rule, the landlord has a duty to mitigate damages if the tenant abandons the property early or is evicted by making reasonable efforts to re-rent the property to another tenant. The landlord is entitled to damages for the difference between the original rent and the rent received from the replacement tenant.

Under the minority rule, the landlord does NOT have to mitigate damages (more common in cases involving commercial leases).