Cal. Civ. Code § 227-E
Landlord duty to mitigate damages
Operative Text
§ 227-e. Landlord duty to mitigate damages. In any lease or rental agreement, excluding any real estate purchase contract defined in paragraphs (a), (c) and (d) of subdivision four of section four hundred sixty-one of this chapter, covering premises occupied for dwelling purposes, if a tenant vacates a premises in violation of the terms of the lease, the landlord shall, in good faith and according to the landlord's resources and abilities, take reasonable and customary actions to rent the premises at fair market value or at the rate agreed to during the term of the tenancy, whichever is lower. If the landlord rents the premises at fair market value or at the rate agreed to during the term of the tenancy, the new tenant's lease shall, once in effect, terminate the previous tenant's lease and mitigate damages otherwise recoverable against the previous tenant because of such tenant's vacating the premises. The burden of proof shall be on the party seeking to recover damages. Any provision in a lease that exempts a landlord's duty to mitigate damages under this section shall be void as contrary to public policy.
Under N.Y. Real Prop. Law § 227-E, when a tenant leaves a rental unit before their lease ends, the landlord is not free to simply let the unit sit vacant and collect the full remaining rent. Instead, the law requires the landlord to make good-faith, reasonable efforts to re-rent the unit at fair market value or the original lease rate, whichever is lower. If a new tenant is successfully placed, that new tenancy ends the departing tenant's lease obligations and reduces any damages the landlord could otherwise claim. Any lease clause that tries to waive this landlord duty is void under New York public policy.
Plain English — not legal advice.
Under N.Y. Real Prop. Law § 227-E, a compliant landlord generally documents the steps taken to re-rent a vacated unit — such as listing the property, responding to inquiries, and showing the unit — so there is a clear record of good-faith mitigation efforts. Operators typically price the re-listed unit at fair market value or the prior lease rate, whichever is lower, and keep records of comparable market rents to support that pricing decision. Because the burden of proof in any damages claim rests with the party seeking recovery, maintaining thorough documentation of marketing activity and any offers received or rejected is a standard practice among property managers operating under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.Y. Real Prop. Law § 227-E gives tenants who have vacated early a meaningful protection: a landlord cannot simply ignore the vacant unit and demand full rent for the remainder of the lease without first making reasonable efforts to find a new tenant. If a landlord pursues a damages claim, the burden falls on the landlord to show those mitigation efforts were made, which means a tenant may be able to raise the landlord's failure to mitigate as a defense in any legal proceeding. Tenants facing such a claim may benefit from gathering evidence about the rental market and the landlord's re-leasing activity, and can explore their options by contacting a local tenant-rights organization or a housing court self-help center familiar with this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.