Reletting
Reletting means the landlord rents a property to a new tenant after the current tenant moves out before the lease ends. The new tenant signs a new lease with the landlord, and the original tenant usually pays a reletting fee and the rent until the unit is rented again.
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Sample Reletting clauses
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.
Source
Zenlabs Holdings IncReletting 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.
Source
TAURIGA SCIENCES, INC.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.
Source
Quanterix Corp (QTRX)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.
Source
Quanterix Corp (QTRX)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.
What does relet mean?
To relet means to rent a property out again. In a lease, reletting means the landlord finds a new tenant for a unit after the current tenant moves out before the lease ends. The new tenant signs a new lease directly with the landlord, and the original tenant’s duty to pay rent usually ends once the new lease starts.
Landlords, property managers under a property management agreement and leasing offices use the term most. On an apartment listing, “relet” or “re-let” simply marks a unit that is being rented out again, often because the previous tenant broke the lease.
How does reletting work?
- The tenant gives notice that they will move out early, or abandons the unit.
- The landlord markets the unit and screens applicants, as it would for any vacancy.
- A new tenant signs a new lease with the landlord, at the rent the market supports.
- The original tenant settles up: usually the reletting fee, rent for the months the unit stood empty, and any shortfall if the new rent is lower, as far as the lease and state law allow.
What is a reletting fee?
A reletting fee (also called a reletting charge or relet fee) is a charge in the lease that the tenant pays when they leave early and the landlord has to find someone new. It covers the cost of re-renting: advertising, showings, screening and paperwork. Leases often set it at a flat amount or as a share of one month’s rent.
A reletting fee is not a release from the lease. Paying it usually does not end the tenant’s duty to pay rent until the unit is rented again, unless the lease says so. And it only applies if the lease includes it.
Does the landlord have to relet?
In most US states, yes. A landlord whose tenant leaves early has a duty to mitigate its damages, which means making reasonable efforts to relet the unit instead of leaving it empty and charging the old tenant for the whole remaining term. Texas, for example, writes this into Texas Property Code § 91.006 and voids lease clauses that waive it. A few states do not impose the duty on residential landlords, and commercial leases are often treated differently, so the lease and local law decide.
Reletting vs. subletting vs. assignment
| Reletting | Subletting | Assignment | |
|---|---|---|---|
| Who finds the new tenant | Landlord | Original tenant | Original tenant |
| Lease | New lease between landlord and new tenant | Sublease between tenant and subtenant | Existing lease transferred to the new tenant |
| Who pays rent to the landlord | New tenant | Original tenant | New tenant |
| Original tenant still liable? | Usually not for rent after the new lease starts, but often for any shortfall | Yes, fully | Often yes, unless the landlord agrees to release them |
| Typical cost to the original tenant | Reletting fee plus rent until relet | None to the landlord, but the risk stays | Assignment fee, if any |
Reletting clause example
Sample clause: Reletting
Add this clause to a contract, send it and get it signed in fynk.
Use it in fynk for freeHow to keep lease terms consistent
Reletting terms differ from lease to lease: one property charges 85% of a month’s rent, another a flat fee, a third nothing at all. In fynk, the reletting fee and notice period are fields in your lease template, so every lease uses the same approved wording and only the numbers change. When a tenant gives notice, reminders and the contract calendar keep the move-out date, the notice period and the end of the term in view.
Which contracts contain a reletting clause?
Residential and commercial leases, and property management agreements that let the manager relet units on the owner’s behalf. These free templates cover reletting or the alternatives to it:
Free templates with this clause
Commercial lease agreement template (office, retail and warehouse space)If the tenant defaults or abandons the premises, the landlord may relet them on the tenant's behalf, and the tenant pays any shortfall on demand.
Use the free template
Office sublease agreement templateThe alternative to reletting: the tenant stays in the prime lease and rents the space to a subtenant under the same terms.
Use the free template
Lease termination agreement templateThe other way out: landlord and tenant end the lease on an agreed date and release each other from further claims.
Use the free template
Related clauses
- Duty to mitigate damages The duty to mitigate damages clause requires a party who has suffered a loss or injury to take reasonable steps to minimize the financial impact of that loss. Failure to mitigate can reduce the amount of compensation recoverable from the other party responsible for the breach or harm.
- Lease termination A lease termination clause outlines the conditions under which a lease agreement can be legally ended by either the landlord or tenant before its scheduled expiration. It typically includes specific terms such as notice periods, potential penalties, reasons for termination, and any obligations both parties must fulfill upon ending the lease.
- Early termination The early termination clause outlines the conditions under which a contract can be ended before its agreed-upon expiry date, including any required notice periods and potential penalties or fees. This clause provides parties with a legal framework to exit the contract, ensuring clarity and protecting both parties' interests in unforeseen circumstances.
- Assignment An assignment clause in a contract outlines the conditions under which one party may transfer its rights or obligations to another party. It typically specifies whether prior consent is required for such a transfer and identifies any exceptions to these requirements.
Frequently asked questions
No. Breaking a lease is the tenant leaving early. Reletting is what the landlord does next: renting the unit to a new tenant. Reletting usually limits what the tenant owes for breaking the lease.
It is the fee a tenant pays under the lease when they move out early, to cover the landlord's cost of finding a new tenant. It is often a flat amount or a share of one month's rent, and it does not by itself end the duty to pay rent.
When you sublet, you find the new occupant, collect their rent and stay liable to the landlord. When the landlord relets, it signs a new lease with a new tenant, and your liability usually ends when that lease starts.
Usually yes, if the lease allows it: the reletting fee covers the cost of finding a new tenant, and rent stays due until the unit is relet or the lease ends. The landlord cannot collect rent twice for the same months.
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