The reletting clause allows a landlord to re-rent a property if the current tenant vacates before the lease term ends, typically to mitigate financial loss due to vacancy. This clause often requires the landlord to make reasonable efforts to find a new tenant and may hold the original tenant responsible for any shortfall in rent until a new lease is secured.
If Landlord elects to take possession of the premises without terminating the Lease, Tenant shall pay to Landlord the rent and other sums due under this Lease, which would be payable, less the net proceeds, if any, of any reletting of the Leased Premises, after deducting all expenses in connection with the reletting, including but without limitation, all repossession costs, brokerage fees, remodeling and repair costs, attorney fees and costs, advertising , and expenses of preparation. If, in connection with any reletting, the new lease term extends beyond the existing term, or the premises covered include other premises not part of the Leased Premises, a fair apportionment of the rent received from the reletting and the expenses incurred, will be made by Landlord in determining the net proceeds received from the reletting. Tenant shall pay such amounts to Landlord monthly on the days on which the rent and all other amounts owing hereunder would have been payable;
Any reletting of the Premises shall be on such terms and conditions satisfactory to Landlord in its sole discretion (including without limitation a term different than the remaining Lease Term, rental concessions, alterations and repair of the Premises, lease of less than the entire Premises to any tenant and leasing of any other portions of the Project before reletting the Premises). Landlord shall not be liable, nor shall Tenant’s obligations be diminished because of Landlord’s failure to relet the Premises or collect rent from such reletting. For the purpose of such reletting Landlord is authorized to make any repairs, changes, alterations, or additions in or to the Premises as Landlord deems reasonably necessary. If the Premises are not relet, then Tenant shall pay to Landlord as damages a sum equal to the Base Rent, Monthly FOE, and Taxes due and payable by Tenant for such period or periods, plus the cost of recovering possession of the Premises (including attorneys’ fees and costs of suit), the unpaid Base Rent, Taxes, Monthly FOE, other amounts accrued including interest per paragraph 37(k) below at the time of repossession, and the costs incurred by Landlord’s efforts to relet the Premises. If the Premises are relet and a sufficient sum is not realized from such reletting [after first deducting the unpaid Base Rent, Taxes, Monthly FOE, and other amounts accrued under this Lease at the time of reletting, the cost of recovering possession (including attorneys’ fees and legal costs), the costs and expenses of repairs, alterations, and additions, reletting expenses (including leasing commissions and repairs completed by Landlord on Tenant’s behalf) and the cost of rent collection] to satisfy the rent provided for in this Lease, then Tenant shall immediately pay any such deficiency upon demand. Tenant agrees that Landlord may file suit to recover any sums as they become due. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect in writing to terminate this Lease for such previous breach.
Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord the rent due under this lease on the dates the rent is due, less the rent Landlord receives from any reletting.
The reasonable costs of reletting and obtaining possession of the Premises shall include the brokerage fee of an independent third party broker, reasonable attorneys’ fees and costs, and the cost of repairing the Premises and preparing the Premises for reletting.
Reletting. At any time or from time to time after the repossession of the Demised Premises or any part thereof, whether or not the Lease Term shall have been terminated pursuant to this Lease, Landlord may (but shall be under no obligation to) relet the Demised Premises or any part thereof for the account of Tenant, for such term or terms (which may be greater than or less than the period which would otherwise have constituted the balance of the Lease Term) and on such conditions (which may include concessions or free rent) and for such uses as Landlord, in Landlord’s absolute discretion, may determine, and may collect and receive the rents therefrom. Landlord shall not be responsible or liable for any failure to relet the Demised Premises or any part thereof or for any failure to collect any rent due upon any such reletting.
Reletting may be done either in Landlord’s own name or under Landlord’s name as agent of the Tenant, for a term or terms which, at the option of the Landlord, may be for the remainder of the term of this Lease, or for any longer or shorter period. At its option, Landlord may make any such alterations to the Premises as in Landlord’s reasonable judgment Landlord considers advisable and necessary in connection with such reletting, and the making of such shall not operate or be construed to release Tenant from liability under this Lease. Landlord shall in no event be liable in any way for failure to re-let the Premises (so long as a reasonable effort to do so is made) or, in the event they are re-let, for failure to collect rent under the reletting.
Tenant shall pay Landlord, on demand, all past due Rent and other losses and damages Landlord suffers as a result of Tenant’s Default, including, without limitation, all Costs of Reletting (defined below) and any deficiency that may arise from reletting or the failure to relet the Premises. “Costs of Reletting” shall include all reasonable costs and expenses incurred by Landlord in reletting or attempting to relet the Premises, including, without limitation, legal fees, brokerage commissions, the cost of alterations and the value of other concessions or allowances granted to a new tenant. Landlord shall be entitled to take into account in connection with any such reletting of the Premises all relevant factors which would be taken into account by a sophisticated landlord in securing a replacement tenant for the Premises including the first class quality of the Property, matters of tenant mix, and the financial responsibility of any such replacement tenant.
Landlord, at Landlord’s option, may relet the whole or any portion or portions of the Premises from time to time, either in the name of Landlord or otherwise, to such tenant or tenants, for such term or terms ending before, on or after the expiration date, at such rental or rentals and upon such other conditions, which may include concessions and free rent periods, as Landlord, in its sole discretion, may determine; provided, however, THAT LANDLORD SHALL HAVE NO OBLIGATION TO RELET THE PREMISES OR ANY PART THEREOF AND SHALL IN NO EVENT BE LIABLE FOR REFUSAL OR FAILURE TO RELET THE PREMISES OR ANY PART THEREOF, OR, IN THE EVENT OF ANY SUCH RELETTING, FOR REFUSAL OR FAILURE TO COLLECT ANY RENT DUE UPON ANY SUCH RELETTING, AND NO SUCH REFUSAL OR FAILURE SHALL OPERATE TO RELIEVE TENANT OF ANY LIABILITY UNDER THIS LEASE OR OTHERWISE AFFECT ANY SUCH LIABILITY, and Landlord, at Landlord’s option, may make such repairs, replacements, alterations, additions, improvements, decorations and other physical changes in and to the Premises as Landlord, in its sole discretion, considers advisable or necessary in connection with any such reletting or proposed reletting, without relieving Tenant of any liability under this Lease or otherwise affecting any such liability.
Tenant will pay to Landlord the cost of recovering possession of the Premises, all costs of reletting, including reasonable renovation, remodeling and alteration of the Premises, the amount of any commissions paid by Landlord in connection with such reletting, and all other costs and damages arising out of Tenant’s default, including attorneys’ fees and costs. Notwithstanding any termination or reentry, the liability of Tenant for the rent payable under this Lease will not be extinguished for the balance of the Term, and Tenant agrees to compensate Landlord on demand for any deficiency, whether arising from (v) reletting the Premises at a lesser rent than applies under this Lease, (w) reletting the Premises for a term shorter than the remaining Term, (x) reletting less than all of the Premises, (y) any default in the payment of rent by any person to whom Landlord relets the Premises, or (z) any other cause whatsoever. No reentry to or taking possession of the Premises or other action by Landlord or its agents on or following the occurrence of any default by Tenant ,viii be construed as an election by Landlord to terminate this Lease or as an acceptance of any surrender of the Premises, unless Landlord provides Tenant written notice of such termination or acceptance.
Reletting refers to the process of finding a new tenant for a rental property when the current tenant vacates before their lease term expires. It often involves the landlord or property manager seeking to re-rent the space to a new tenant, who would take over the remaining lease term or sign a new lease agreement. Reletting is a common practice in real estate to ensure continuous occupancy and rental income.
Reletting should be considered under circumstances such as:
Reletting can also be used as an alternative to charging the previous tenant a lease-breaking fee, depending on the terms of the original lease agreement.
When drafting a reletting clause, it’s essential to outline the rights and responsibilities of both the landlord and the tenant. A well-crafted reletting clause might include:
Example:
“In the event the Tenant vacates the premises before the lease term expires, the Landlord agrees to make reasonable efforts to relet the property. The Tenant shall be responsible for any costs incurred during the reletting process, including but not limited to advertising and administrative fees. Should a new tenant be secured, the original lease shall be deemed canceled, and the Tenant relieved of further obligation, subject to any reletting fees stipulated herein.”
Reletting clauses are typically found in:
Including a reletting clause provides clear guidelines and expectations for all parties involved in the lease, helping to manage the risks and responsibilities associated with breaking a lease early.
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The "Remedies for Breach" clause outlines the legal consequences and available actions if one party fails to fulfill their obligations under the contract. It typically specifies the types of remedies, such as damages, specific performance, or termination, that the non-breaching party may pursue to address the breach and mitigate its impacts.
The "Remedies" clause in a contract outlines the actions or compensation available to a party when the other party fails to fulfill their contractual obligations. It specifies the rights and procedures for seeking redress, such as damages, specific performance, or termination of the contract, aimed at addressing breaches and restoring the affected party's interests.
The "Removal of Personal Property" clause delineates the responsibilities and time frame within which tenants or parties must vacate and remove their belongings from a premises upon termination or expiration of a lease or agreement. Failure to comply may result in items being considered abandoned, potentially leading to their disposal or storage at the owner's expense.
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