Duty to Minimize Loss

This is a general duty for both tenants and landlords, where both have an obligation to try to reduce their losses within reason if they are hoping to be compensate for it. One common example is when a tenant ends a fixed term tenancy early. In such a situation, while a landlord is technically entitled to recover any the full amount of rent that the tenants agreed to under the tenancy agreement, there is a requirement for the landlord to try to find a replacement tenant to minimize their losses. The RTB has released Policy Guideline 5 to provide parties further guidance on how the RTB interprets the duty to minimize losses.