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Landlord mitigating damages? (permission given to break lease)

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Junior Member
What is the name of your state? CA

Due to change in personal circumstances we will not be able to afford a lease we recently signed (move in date July 1). We contacted the landlord who was sympathetic to our situation and we told him that we had already advertised the property and could give him names of three potential tenants. He said he would immediately attempt to re-rent it but he didn't want us to market it. He said he was going to ask for a higher rent and wanted it to be managed by a realtor friend of his. He did in fact put it in the hands of a local real estate agent for showing and marketing. This house is currently being marketed for rent at a full $400 MORE PER MONTH than the lease we signed.

The house is in a highly desireable neighborhood with excellent public schools where most houses rent within a week from when they become available. Some even rent the exact same day they are first marketed! We notified the landlord more than 2 weeks ago of our dilemma and the house is still not rented. Even the agent told me (in writing in an email) that the amount of rent was a stretch and that there were a couple of other nicer/larger homes in the same neighborhood listed for the same rent that were making it even more difficult to find new tenants.

What are our responsibilities here?
Is the landlord complying with the law that requires a good faith effort to rerent and mitigate damages even if he is asking a rental amount substantially higher than the one on our lease? Does the fact that the lease we signed was for a rental amount $500 more per month than the previous tenant have any bearing here?

The landlord has our security deposit that equals 1 month of rent. Do we need to pay the rent on July 1 if the property has not been re-rented.

Please advise.What is the name of your state?

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