What is a relet fee?
A relet fee is what your landlord charges to cover the cost of finding a new tenant after you break your lease early. It's different from an early termination fee — a relet fee is tied to the landlord's actual cost of re-renting, while termination fees are often a flat penalty.
When you break a lease early, your landlord has to find someone new. A relet fee is supposed to cover that cost — advertising, showing the unit, processing a new application, maybe a leasing agent commission. Typical relet fees range from one to two months' rent, though some landlords try to charge more.
Here's the thing most renters don't know: in most states, your landlord has a legal duty to mitigate damages. That means they have to make a reasonable effort to re-rent the unit — they can't just leave it empty and bill you for the remaining lease term. If they find a new tenant in two weeks, they can't charge you for three months of vacancy.
Before you sign a lease, check the early termination clause. Some leases let you pay a flat fee (usually 1-2 months' rent) to break the lease cleanly. Others charge a relet fee plus rent until the unit is filled. The flat fee is usually the better deal — it's predictable, and you're not on the hook if the landlord drags their feet finding a replacement.
If you're facing a relet fee you think is excessive, ask for documentation. How much did advertising cost? How long was the unit actually vacant? If the numbers don't add up, push back.
How This Works State by State
The rules vary depending on where you live. Here's how the biggest states handle it.
Under Cal. Civ. Code § 1951.2, California landlords must mitigate damages when a tenant breaks a lease, and relet fees cannot exceed actual re-renting costs.
Under Tex. Prop. Code § 91.006, Texas landlords must mitigate damages when a tenant breaks a lease. Relet fees commonly range from 85% to 100% of one month's rent.
Under N.Y. Real Prop. Law § 227-e, New York landlords must mitigate damages after early lease termination, and relet fees must reflect actual re-renting costs.
Under Fla. Stat. § 83.595, Florida allows early termination clauses in leases, including relet fees, but courts expect landlords to mitigate damages in practice.
Under 735 ILCS 5/9-213.1, Illinois landlords must make reasonable efforts to mitigate damages. Under Chicago RLTO § 5-12-120, landlords cannot charge rent after a replacement tenant is found.
| State | Rule | Statute |
|---|---|---|
| California | California requires landlords to make reasonable efforts to re-rent. A relet fee that exceeds the landlord's actual damages from the early termination may be unenforceable as a penalty. | Cal. Civ. Code § 1951.2 |
| Texas | Texas requires landlords to mitigate by making reasonable efforts to re-rent. Many Texas leases include a specific reletting charge, often 85% of one month's rent, but courts can reduce excessive fees. | Tex. Prop. Code § 91.006 |
| New York | New York requires landlords to mitigate damages by making good-faith efforts to re-rent the unit. Relet fees must reflect actual costs — courts have struck down fees that function as penalties. | N.Y. Real Prop. Law § 227-e |
| Florida | Florida does not explicitly require landlord mitigation by statute, but courts have imposed a duty to mitigate in practice. Relet fees must be specified in the lease to be enforceable. | Fla. Stat. § 83.595 |
| Illinois | Illinois requires landlords to mitigate. Chicago's RLTO specifically mandates that landlords make good-faith efforts to re-rent the unit and cannot charge for periods after a replacement tenant moves in. | 735 ILCS 5/9-213.1; Chicago RLTO § 5-12-120 |
●Frequently Asked Questions
Frequently Asked Questions
What is a relet fee?
A relet fee is what your landlord charges to cover the cost of finding a new tenant after you break your lease early. It's different from an early termination fee — a relet fee is tied to the landlord's actual cost of re-renting, while termination fees are often a flat penalty.
Can my landlord keep my entire deposit if I break my lease early?
Your landlord can deduct actual damages from early termination — unpaid rent until they re-rent the unit, re-listing costs — but they must make reasonable efforts to find a new tenant. They can't just pocket the whole deposit and leave the unit empty.
Can my landlord charge me excessive late fees?
Late fees must be reasonable and are capped in many states. A late fee that's disproportionate to the landlord's actual cost of the late payment may be unenforceable as a "penalty" rather than legitimate damages.
Can my landlord charge a non-refundable application fee?
Most states allow application fees to cover screening costs (credit check, background check), but many cap the amount. Some states require the fee to reflect actual screening costs only.
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