Commercial leases generally do not include an Implied Warranty of Habitability that residential leases enjoys under California Civil Code section 1941 et seq.. Under section 1941 et seq., a landlord’s breach of the warranty of habitability may be used by a defense to an eviction based on non-payment of rent. This imputes a responsibility on the landlord to repair damaged heating units and plumbing and gives the tenant the option to abate their rent if their unit is not habitable from lack of heat and running water.

In a commercial setting, no such warranty exists so landlords may shift the burden of repairs onto the tenants. For instance, commercial landlords may limit their responsibilities to keeping the foundations, roof, and structural portions of the outer walls of a leased property. They may shift the burden of repairing such things as air conditioning, HVAC, interior ceiling, electrical, plumbing, and sewers onto the tenant. Therefore, if some of all of these items malfunction and render the property unfit for habitability or for conducting business, the tenant may be prevented from abating the rent as a remedy.

Tenants should be very careful to sign a commercial lease agreement without understanding the full extent of responsibilities between them and the landlord, and then negotiate those clauses to make the terms more fair for themselves.