Landlord Cannot Recover Full Rent from Breaching Tenant Where a Replacement Tenant Was Found
FACTS:
The tenant breached the lease and vacated the premises six months early. The landlord marketed the property and was able to obtain a replacement tenant with a rental rate $250 more per month than what the original tenant was paying.
ISSUE:
May the landlord pursue the original tenant for the full amount due for the remaining six months of the lease?
ANSWER:
See discussion.
DISCUSSION:
Generally, a landlord has a duty to take reasonable steps to mitigate damages in the event of a tenant’s breach. See A.R.S. § 33-1305 and Dushoff v. Phoenix Co., 23 Ariz. App. 238, 532 P.2d 180 (1975). Here, the landlord was able to mitigate his damages and locate a tenant who was willing to pay more money on a monthly basis. As such, the landlord may not pursue the tenant for the full amount due under the original lease. The landlord would be limited to pursuing the amount of money, if any, in lost rent during the time the home was vacant, any repair expenses, and the marketing expenses incurred to find a new tenant, all balanced against the increased rent received from the second tenant.