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  1. #1
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    Default Does a Landlord Have a Duty to Mitigate Damages for Breach of a Commercial Lease

    Landlords have a duty to mitigate their damages when a residential tenant breaks a lease, by trying to find a replacement tenant. Does that duty to mitigate also apply to a commercial tenant?

  2. #2
    Join Date
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    Default Re: Does a Landlord Have a Duty to Mitigate Damages for Breach of a Commercial Lease

    In some states, and depending on the terms of the lease, even with a residential property the landlord may have the option of collecting the rent for the duration of the lease, so it's important not to speak too broadly.

    Commercial tenants have fewer rights than residential tenants. Commercial leases often include acceleration clauses that provide for an acceleration of some or all future rent in the event of a breach. The extent to which such clauses are enforceable varies by state and the amount of rent accelerated. States are all over the place in terms of the extent to which rent acceleration or liquidated damages clauses are enforceable.

    A commercial tenant should understand state law before signing a lease and, if presented a legal but harsh clause that would be triggered by early termination, should negotiate for more favorable terms or consider renting elsewhere.

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