Reletting: Overview, definition, and example
What is reletting?
Reletting is when a landlord rents out a property again after a tenant has moved out—often because the original tenant left early, broke the lease, or was evicted. The landlord finds a new tenant to take over the space, either for the rest of the old lease or under a brand-new agreement.
In plain terms, it’s the process of finding a replacement renter when the first one doesn’t stick around.
Why is reletting important?
Reletting helps landlords recover lost rent when a lease ends unexpectedly. For tenants, it can reduce how much they owe if they break a lease early—because if the landlord successfully relets the property, the tenant may no longer be responsible for paying rent through the end of the lease.
In some states or lease agreements, landlords are legally required to try to relet the property rather than just letting it sit empty and charging the original tenant. That’s why reletting is often tied to fairness, mitigation of losses, and clearly defined responsibilities in the lease.
Understanding reletting through an example
Let’s say you lease an office space for your business, but halfway through the lease term, you decide to shut down the location and move out early. Your lease says you’re on the hook for rent until the lease ends—but it also allows the landlord to relet the space.
The landlord lists the space and finds a new tenant two months later. Thanks to the reletting clause, you’re only responsible for the two months the space sat empty—not the full remaining term. The new tenant takes over, and your obligation ends there.
An example of a reletting clause
Here’s how a reletting clause might appear in a commercial lease agreement:
“If the Tenant vacates the Premises prior to the expiration of the Lease Term, the Landlord shall use commercially reasonable efforts to relet the Premises. Any rent received from such reletting shall be applied to reduce the Tenant’s remaining rental obligations. The Tenant shall remain liable for any shortfall between the rent owed and the rent received from the new tenant.”
Conclusion
Reletting is a practical solution when a lease ends early. It protects the landlord’s income while giving tenants a fairer path to exit a lease without paying for time they didn’t use.
If you’re signing a lease or considering moving out early, pay close attention to the reletting terms. It can make a big difference in how much you owe—and how smoothly the transition goes for everyone involved.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.