Legal Question in Real Estate Law in California

Re: Commercial Utilities Responsibility

The simplistic answer would be to tell you to read the contract and see whether it promises hot water and heat, and if it does, failure to provide it constitutes a breach.

However, truly assisting you requires going beyond inquiry as to whether an express term of the lease is breached. The landlord may also be in breach of an implied promise to deliver a suitable premises for your use.

I can't really tell without knowing more about the type of property, your intended use, whether the landlord was aware of that intent, and some other features of the property, such as whether it has a hot water heater of any kind. It is also of some importance to know what climate region of California you're in, and possibly the age and overall quality of the building.

First, many commercial spaces don't have hot water, and some are unheated. This may be appropriate depending on type of use, climate, tenant expectations, etc.

Second, natural gas is not the only way to heat water or space. Does the building have gas water heaters that are nonfunctional? Does it have electric water heaters? Could it? Is there even hot water piping? Is it reasonable for you to use a small (5-10 gallon) under-sink electric heater for your needs? Etc. etc.

Then, as to the space heat. Are there no provisions for heat at all, or are they there but non-functioning? Do the other tenants (if any) have heat? Do the other tenants also need heat? What is their position? Have you investigated other means of providing heat? If you have an office or store, unvented heaters would probably be illegal and dangerous, but maybe if it is warehouse or shop space you could use propane infrared or some other kind of heat safely and legally.

Then, there is always electric heat. Probably dreadfully expensive, and maybe the building wiring wouldn't handle it, but there are certain advantages including localized sourcing and control.

So, whether a court wouldlet you out of your lease based upon breach of an implied warranty or other condition would depend on circumstances including your intended use and the building itself. It could also depend in part on how much diligence you usedin checking it out and the degree of candor by the landlord in telling you about the space. Without knowing more facts I cannot predict the outcome and I advise full-blown negotiation as a better choice than withholding rent.