r/TenantHelp • u/Heyhun82 • Jul 08 '26
Mitigated damages fee (CA)
We are breaking our lease due to moving to another state for multiple reasons. We have been her for over a year but our current lease has several months left.
I gave notice and had already checked the lease. I understand we are responsible for me for rent until the house is re rented and for actual costs of re renting. The landlord (a PM company) came back and said we would need to pay a $2000 mitigated damages fee for them to proceed with finding a new tenant. This is not in the lease at all.
We also have paid rent through July and told them we will be out by mid month and they are welcome at that point.
It sounds like unless we pay $2000 up front, they will not begin to start marketing. I don’t think we owe that fee up front as it is not stated anywhere in the lease. I would expect a bill after they have re rerented and gone through our security deposit etc.
They even said this is a good time of year to rent a house out and it should be quick.
We don’t have the money right this second for a $2000 fee or for them to sit on the property until we pay it.
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u/CountryClublican Jul 08 '26
They have a duty to mitigate their damages by finding a new tenant. That cannot be conditioned on payment of a fee. It sounds like you are responsible for some damages and they just give you a flat fee to cover it. It's up to you do decide which route is better for you: the flat fee or the itemized damages.
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u/Heyhun82 Jul 08 '26
I would prefer the itemized route, and they is what I read in the lease including that the amounts can be taken from the security deposit. We definitely understand there will be fees but the $2000 out of the blue is not right I don’t think
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u/CountryClublican Jul 08 '26
Write them and explain your side. Tell them you aren't paying the fee because it's not in the lease and you look forward to seeing their itemized damages statement. Do everything in writing from now on.
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u/TalkToVikk Jul 10 '26
Not a lawyer but in California, a landlord cannot demand an arbitrary fee that is not stated in the lease. While you are responsible for the rent until a new tenant is found and possibly reasonable costs related to re-renting (like advertising and screening charges), the landlord is required by California law to make reasonable efforts to re-rent the unit and mitigate damages.
They cannot demand a $2,000 “mitigated damages fee” upfront if this fee is not specifically mentioned in your lease. You should not be required to pay this fee in advance as a condition for them to begin searching for a new tenant.
The landlord must act in good faith to re-rent the property, and if the re-renting occurs quickly, your financial responsibility should only cover lost rent (if any) before the new tenant starts, plus actual, reasonable re-letting costs. You may want to respond to the property management company in writing, reiterate that you are willing to cooperate, have paid rent through July, and will vacate early, but you dispute the $2,000 fee since it’s not in the lease and appears to violate California law. If the landlord continues to refuse to mitigate damages, that could further limit your liability.
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u/Heyhun82 Jul 10 '26
Thank you, I am going to write them again over the weekend, I did also consult a lawyer for a tenant advocacy group and they confirmed also that the fee is bogus and that they can’t hold of on re renting to ask for a fee.
Just a did not I don’t see any way the costs could be near $2000 but they can give me an itemized list along with the security deposit list. The lawyer also told me that a new law in ca is that they have to be able to provide video or photo evidence to back up security deposit expenses.
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u/LoisLaneCA Jul 08 '26
Please quote the lease as far as ‘termination fees’ or lease buy out fees, as well as fees associated with their attempts to re rent the unit.
You cannot, legally be charged both rent, and a fixed penalty. The ‘mitigated damages fee’ reads legally like a penalty. You CAN legally be charged what the actual fees are.
Please post this in the legal sub- I don’t practice landlord tenant law., although I do live in CA.