Bill > S00421

This bill amends New York's real property law to require landlords to make good faith efforts to mitigate damages when commercial tenants vacate premises before their lease term ends. Specifically, the law now mandates that landlords take reasonable and customary actions to re-rent the vacant space at either the fair market value or the original lease rate, whichever is lower. If the landlord successfully rents the space to a new tenant, the new lease will effectively terminate the previous tenant's lease and limit the damages that can be recovered from the original tenant who broke the lease. The bill also explicitly states that any lease provisions attempting to exempt landlords from this damage mitigation duty are void and against public policy. Importantly, the bill removes language that previously limited this requirement to residential properties, thereby expanding the damage mitigation obligation to commercial leases. The burden of proving damages remains on the party seeking to recover them, and the law takes effect immediately upon passage.

Justice

https://www.nysenate.gov/legislation/bills/2025/S421