Case brief summary
When a tenant breaks a lease early, courts now treat leases like contracts. Landlords must make reasonable efforts to find a new tenant instead of letting the unit sit empty and billing the original tenant for everything.
Facts
In the first case, Kridel signed a lease but backed out before moving in because his wedding was called off, and the landlord ignored his request to be released, later rejecting a different renter who wanted to move in, then waited over a year before even trying to re-rent the unit. In the second case, Perosio moved out of his apartment before his lease ended and stopped paying rent, and the landlord sued him for the unpaid months without clearly showing any effort to find a replacement tenant.
Procedural history
Lower courts ruled against both tenants, following an old rule that landlords didn't have to try re-renting before collecting full rent. The New Jersey Supreme Court agreed to review both cases together.
Issue
Does a landlord who sues a tenant for unpaid rent after the tenant abandons an apartment have a legal duty to make reasonable efforts to re-rent the unit to reduce the damages owed by the tenant?
Holding
Yes. Landlords must make reasonable efforts to find a new tenant after one leaves early. The old rule allowing landlords to collect full rent without trying is overturned, and landlords must prove they tried.
Reasoning
Treating leases as simple property transfers with no landlord responsibility is outdated. It's unfair to let a landlord leave an apartment empty and still collect full rent, especially since landlords best know if they tried to re-rent.
Opinions
Majority (Pashman): A landlord must make reasonable efforts to re-rent an apartment abandoned by a tenant before collecting unpaid rent, overruling the old no-duty rule.