10. MITIGATION OF DAMAGES
If a resident breaks the lease, you’re not entitled to let the unit sit vacant and collect rent. You’re legally obligated to “mitigate damages” by making a reasonable effort to re- rent the unit. This means advertising the unit, showing it to prospective tenants, and documenting your efforts. You may still hold the original tenant accountable for unpaid rent until a replacement is found, but only if you’ve made good faith efforts to fill the vacancy.
FINAL THOUGHTS Understanding the legal landscape is part of running a responsible and successful rental business. While these ten areas don’t cover every law affecting landlords, they represent a strong foundation. Consulting with a local attorney or landlord association like the American Apartment Owners Association can help you stay compliant and out of court.
ALLEN ARTCLIFF-CRONROD COO AAOA Properties
Allen Artcliff-Cronrod is the COO of AAOA Properties and heads up the Brokerage division. His goal is to provide resources for multifamily investors and operators, so they can purchase and manage their properties more efficiently.
PAGE 100
Powered by FlippingBook