California Commercial Maintenance: Landlord & Tenant Duties
Understand maintenance responsibilities in California commercial leases, including NNN vs. gross allocations, seismic retrofit, and building code compliance.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
In California, commercial maintenance obligations are primarily governed by the California Civil Code (originally enacted March 21, 1872, effective January 1, 1873). Unlike residential tenancies, where the law implies a warranty of habitability, commercial maintenance is entirely governed by the lease agreement. However, since January 1, 2025, SB 1103 has introduced significant transparency requirements for Common Area Maintenance (CAM) charges, particularly for small "Qualified Commercial Tenants" (QCTs).
"As Is Default"
Official Law Citation: The rules and regulations outlined on this page are strictly configured under the official California Civil Code § 1925 et seq.. Landlords must always ensure their lease agreements directly adhere to this state code and the transparency mandates of SB 1103.
Under California law, if the lease does not specify otherwise, the commercial tenant is presumed to have accepted the premises "as is" and assumes responsibility for maintenance. This makes explicit lease language on maintenance allocation critically important.
Maintenance by Lease Type
Landlord Obligations That Cannot Be Disclaimed
While maintenance is primarily governed by the lease, California law imposes specific statutory requirements and disclosure obligations that must be addressed:
Building Code Compliance
In California commercial leases, parties may contractually shift the burden of compliance with government-ordered repairs (including building codes and structural safety) to the tenant (Brown v. Green, 8 Cal. 4th 812). If the lease is ambiguous, courts apply a six-factor test to determine responsibility: (a) cost of repair vs. rent, (b) lease term, (c) relationship of benefit to the parties, (d) whether the repair is structural/non-structural, (e) degree of interference with tenant's use, and (f) likelihood the parties contemplated the law.
ADA Compliance
The ADA requires that commercial properties open to the public be accessible. The lease should allocate responsibility, but the landlord retains underlying liability as the property owner. Common approaches:
- Landlord handles common areas - lobbies, elevators, parking, restrooms.
- Tenant handles their leased space - ensuring accessibility for their customers and employees.
Furthermore, under Civil Code § 1938, every commercial lease executed on or after July 1, 2013, must state whether the premises have been inspected by a Certified Access Specialist (CASp). If a CASp report exists and indicates the property does not meet standards, the landlord must provide the report to the tenant at least 48 hours prior to lease execution. Failure to provide the report gives the tenant a 72-hour right of rescission after signing.
Seismic Retrofit
California requires certain older buildings (particularly unreinforced masonry buildings pre-dating 1978) to undergo seismic retrofitting. The cost allocation should be addressed in the lease. If not:
- Local ordinances typically place the obligation on the building owner.
- Landlords may attempt to pass costs through as capital improvement amortization in NNN leases.
Fire and Life Safety
The landlord is generally responsible for maintaining fire alarm systems, sprinkler systems, emergency exits, and other life safety equipment in common areas and the building shell.
Typical Tenant Maintenance Obligations
Interior Maintenance
- Keeping the premises clean and in compliance with health regulations.
- Interior painting, flooring, and fixture maintenance.
- Plumbing and electrical repairs within the demised premises.
HVAC Maintenance
NNN leases almost always require tenants to maintain a preventive maintenance contract with a licensed HVAC contractor. Many leases require proof of this contract upon execution.
Trade Fixtures
Tenants are responsible for maintaining all equipment they install (commercial ovens, coolers, manufacturing equipment, racking, etc.).
CAM Charges and Reconciliation
In NNN and modified gross leases, the landlord maintains common areas and passes costs through as CAM charges. The lease should specify:
- What expenses are included in CAM.
- Whether there is a CAM cap.
- The reconciliation process (typically annual).
- Audit rights for the tenant.
Effective January 1, 2025, SB 1103 (Civ. Code § 1950.9) mandates strict CAM transparency for Qualified Commercial Tenants (QCTs). A QCT is defined as a microenterprise (≤5 employees), a restaurant (<10 employees), or a nonprofit (<20 employees). For these tenants, landlords cannot charge building operating costs unless: (a) costs are allocated proportionately (e.g., by square footage), (b) the tenant is provided an itemized list of expenses with supporting documentation (contracts, receipts), and (c) the landlord provides a signed, dated attestation that costs are true and correct. QCTs have an automatic statutory right to inspect supporting documentation upon 30 days' notice.
Frequently Asked Questions
▶What are the California landlord-tenant laws every property owner should know?
California landlord-tenant law is governed primarily by Civil Code §1940–1954.06 and the Tenant Protection Act (AB 1482). Key requirements include a one-month security deposit limit (effective July 2024), statewide rent caps of 5% + CPI or 10% (whichever is lower), just-cause eviction protections for tenancies over 12 months, mandatory habitability standards, and extensive disclosure requirements. Non-compliance can result in statutory penalties and punitive damages.
Read the complete guide▶What is the California eviction process and how long does it take?
California distinguishes between at-fault and no-fault evictions. For unpaid rent, landlords serve a 3-Day Notice to Pay or Quit. For lease violations, a 3-Day Notice to Cure or Quit is required. No-fault evictions require 30 days notice for tenancies under one year, or 60 days for longer tenancies, plus relocation assistance equal to one month's rent under AB 1482. After notice expires, an Unlawful Detainer lawsuit is filed, and the full court process typically takes 5-8 weeks.
Read the complete guide▶What is the California security deposit limit in 2026?
As of July 1, 2024, California limits security deposits to one month's rent for all residential properties, regardless of whether the unit is furnished or unfurnished — eliminating the previous two-month limit. Landlords must return the deposit within 21 days of move-out with an itemized statement of deductions. Allowable deductions include unpaid rent, cleaning beyond normal wear and tear, and repair of tenant-caused damage.
Read the complete guide▶What are the California rent increase laws and caps for landlords?
Under AB 1482 (the Tenant Protection Act), most California residential properties are subject to annual rent caps of 5% plus the local Consumer Price Index (CPI), or 10%, whichever is lower. Landlords must provide 30 days written notice for increases of 10% or less, and 90 days for increases above 10%. Exemptions include properties built within the last 15 years, certain single-family homes, and owner-occupied duplexes.
Read the complete guide▶What is the grace period for late rent in California?
California does not mandate a statutory grace period for late rent — technically, rent is late the day after it is due. However, most leases include a 3-5 day contractual grace period. Late fees must be reasonable and reflect the landlord's actual costs from the delay. A 3-Day Notice to Pay or Quit cannot be served until rent is actually past due, and courts may reject excessive late fee provisions as unenforceable penalties.
Read the complete guide▶What disclosures must California landlords provide to tenants?
California requires extensive pre-lease disclosures including: lead-based paint warnings (pre-1978 buildings), Megan's Law sex offender database notice, bed bug history, mold hazards, proximity to former military ordnance locations, flood zone status, and any known environmental hazards. Landlords must also disclose the property's demolition or renovation history and provide contact information for the property owner or authorized agent.
Read the complete guide▶What are the California lease requirements for rental properties?
While oral leases are technically valid for terms under one year, California strongly favors written agreements. Required lease elements include rent amount and due date, security deposit terms, maintenance responsibilities, and rules regarding pets, smoking, and subletting. Lease terms must comply with AB 1482 just-cause eviction protections, and any waiver of tenant rights in the lease is void and unenforceable.
Read the complete guide▶What are California landlord maintenance obligations and habitability standards?
Under California's implied warranty of habitability, landlords must maintain properties in fit and livable condition. This includes working plumbing, heating, electrical systems, weatherproofing, clean common areas, functioning locks and windows, and pest control. If a landlord fails to make necessary repairs within 30 days of written notice, tenants may use the 'repair and deduct' remedy (up to one month's rent) or withhold rent entirely until conditions are corrected.
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