Since Minnesota’s admission to the Union on May 11, 1858, commercial maintenance responsibilities have been primarily dictated by the lease agreement. However, unlike residential tenancies where covenants of habitability are mandatory, commercial properties are subject to specific statutory defaults regarding uninhabitable buildings and mandatory compliance with the State Building Code. While the statutory covenants of habitability found in Chapter 504B apply exclusively to residential tenancies, commercial owners retain legal responsibility for code compliance.

Official Law Citation: MN Stat. § 504B.131 (Right to Surrender); MN Rules 1300.0110 (Owner responsibility for code maintenance); Bedow v. Watkins, 552 N.W.2d 543 (No implied warranty of habitability in commercial leases).

No Implied Warranty of Habitability

The residential implied warranty of habitability (including the 68°F heat rule under MN Stat. § 504B.161 and pest extermination duty) does not apply to commercial leases in Minnesota (Bedow v. Watkins). A commercial property is typically leased "as-is," and maintenance duties are allocated by the signed lease agreement.

However, under MN Stat. § 504B.131, a tenant or occupant of a building that is destroyed or becomes uninhabitable or unfit for occupancy through no fault or neglect of the tenant may vacate and surrender the building and is not liable for rent thereafter. This statutory right applies to commercial leases unless the parties "expressly agree otherwise" in the lease agreement.

Maintenance by Lease Type

Regardless of the lease type, MN Rules 1300.0110, Subp. 3 dictates that the owner or the owner's designated agent shall be responsible for the maintenance of buildings and structures to ensure compliance with the Minnesota State Building Code. While a lease may shift the financial burden of repairs to a tenant, the owner remains legally responsible to the building official for the property's maintenance.

Triple Net (NNN) Lease

• Landlord: Typically responsible only for structural elements (foundation, exterior walls, structural roof members).
• Tenant: Responsible for essentially everything else—interior repairs, HVAC maintenance, plumbing, electrical, parking lot, landscaping, snow removal, roof membrane, and even some structural repairs depending on the lease.

Gross / Full Service Lease

• Landlord: Maintains the building's exterior, roof, HVAC systems, elevators, common areas, and all base building systems.
• Tenant: Typically responsible only for their interior suite—basic cleaning, cosmetic maintenance, and any tenant-installed fixtures or equipment.

Modified Gross Lease

• A hybrid arrangement where the parties negotiate which specific maintenance items fall to each party.

Common Area Maintenance (CAM)

In multi-tenant commercial properties, the landlord typically arranges and manages maintenance of common areas (parking lots, lobbies, hallways, restrooms, landscaping). The cost is then charged back to tenants as CAM charges, allocated on a pro-rata basis by square footage.

The lease should clearly define:

• What expenses are included in CAM.
• Whether CAM charges have a cap (a "CAM cap").
• The annual reconciliation process.

Minnesota's Cold Climate Considerations

Minnesota's extreme winters create unique commercial maintenance challenges:

• Snow Removal: Who is responsible for plowing parking lots and shoveling sidewalks? This must be clearly defined, as slip-and-fall injuries create significant liability.
• Heating Systems: In a NNN lease, the tenant is typically responsible for maintaining the heating system—a critical and potentially expensive obligation in Minnesota's sub-zero winters.
• Freeze Protection: Pipes, sprinkler systems, and water lines must be properly insulated. Responsibility for damage from frozen/burst pipes should be explicitly addressed.

Best Practices for Minnesota Commercial Landlords

• Be Specific About "Structural": Clearly define which items are "structural" (landlord's responsibility) vs. "non-structural" (tenant's responsibility). Is the roof membrane structural? Is the parking lot surface? Ambiguity leads to disputes.
• Require HVAC Maintenance Contracts: If the tenant is responsible for HVAC, require them to maintain a professional maintenance contract and provide annual proof.
• Address Statutory Surrender: Ensure the lease explicitly addresses MN Stat. § 504B.131 if the parties intend to waive the tenant's right to surrender the lease upon the building becoming uninhabitable.

How Landager Helps

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