How Much Is a Reletting Fee for Breaking a Lease?

A reletting fee is a charge a tenant may encounter when terminating a lease agreement before its predetermined end date. This fee covers the administrative and marketing expenses a landlord incurs to secure a new tenant for the property. It is important to understand that a reletting fee is distinct from any potential charges for lost rent, which may be a separate financial obligation.

Understanding Reletting Fees

A reletting fee is typically considered a form of liquidated damages, representing an agreed-upon charge to compensate a landlord for the efforts involved in finding a replacement tenant due to an early lease termination. The purpose of this fee is to offset specific costs associated with the re-rental process. These costs can include expenses for advertising the vacant unit, screening new applicants, processing paperwork, and any commissions paid to agents involved in securing a new lease.

This fee is generally assessed when a tenant initiates an early departure from the rental property, rather than at the natural conclusion of the lease term. It functions to reimburse the landlord for the administrative burden and marketing investment required to minimize vacancy periods. The reletting fee specifically addresses the expenses of preparing and marketing the unit for a new occupant, not the rent that would have been collected if the original tenant had remained.

Calculating Reletting Fees

The amount of a reletting fee is typically outlined within the lease agreement, providing transparency regarding this potential charge. Common methods for determining this fee include a fixed dollar amount, such as $500 or $750, or a percentage of one month’s rent, often ranging from 85% to 100% of the monthly rental amount.

In some instances, leases may stipulate that the tenant is responsible for the landlord’s actual, documented reletting expenses, though this approach is less common. Factors influencing the specific amount can include prevailing market conditions, the remaining duration of the original lease, and the landlord’s assessment of the risk associated with an early termination.

State-Specific Regulations

The legality and enforceability of reletting fees can differ significantly depending on the jurisdiction. Many states permit reletting fees, particularly if they are deemed “reasonable” and reflect actual costs or a fair estimate of damages incurred by the landlord. Some jurisdictions may impose specific statutory limits on the amount or the circumstances under which these fees can be charged.

Other states may have regulations that prohibit or heavily restrict reletting fees, sometimes requiring landlords to actively mitigate damages by making reasonable efforts to find a new tenant. Any reletting fee must be clearly stipulated in the lease agreement for it to be enforceable. Landlords typically cannot collect rent from both the vacating tenant and a new tenant for the same period.