Landlord is Obligated to Mitigate Damages Caused by a Tenant’s Breach
FACTS: The tenant signed the residential lease agreement and was scheduled to take occupancy July 1st. In late June, the tenant advised the landlord that he was “canceling” the lease. The landlord has demanded that the tenant pay the rent for the entire one year lease term.
ISSUE: Is the tenant required to pay rent for the full one year lease term?
ANSWER: See Discussion.
DISCUSSION:
Generally, a landlord has a duty to take reasonable steps to mitigate damages in the event of a tenant breach. See A.R.S. §. 33-1305(A) and Dushoff v. Phoenix Co., 23 Ariz. App. 238, 532 P. 2d 180. (1975). The landlord is therefore obligated to attempt to rent the property to another tenant. The landlord’s recoverable damages based on the tenant’s breach would be the rent due under the original lease until a replacement tenant begins paying rent, plus the deficient monthly rent (if any), marketing costs, and agent compensation.