The untenantability clause in a lease agreement addresses the conditions under which a rented property becomes uninhabitable due to damage or destruction, such as from a fire or natural disaster. This clause typically outlines the rights and responsibilities of both the landlord and tenant, including possible rent abatement or the termination of the lease if repairs cannot be made within a reasonable time.
(iii)If during the HVAC Work Period Tenant believes that a Substantial Portion of the Demised Premises is Untenantable, Tenant shall promptly notify Landlord by email to Alice Zhu ([email protected]) and Peter Ofarrill ([email protected]) (or such other party as Landlord may direct by written notice to Tenant) of such Untenantability (the “Construction Period Untenantability Notice”). Upon receipt of the Construction Period Untenantability Notice, Landlord shall use commercially reasonable efforts to promptly dispatch a representative to meet with a Tenant representative at the Demised Premises to investigate Tenant’s Untenantability claim. In connection with said investigation, the parties shall take multiple temperature readings (with a maximum of six) in mutually agreed to locations (the “Temperature Readings”) in the affected Substantial Portion area(s) (the “Affected Area”) of the Demised Premises. In the event that the average of the Temperature Readings confirms Tenant’s Untenantability claim and Tenant has (a) notified its employees that Tenant is ceasing operations at the Demised Premises, and (b) substantially all of the Tenant’s employees have vacated or not shown up for work at the Demised Premises as a result of the Untenantability, then for the period commencing on the day of Tenant’s Construction Period Untenability Notice until such Substantial Portion of the Demised Premises is no longer Untenantable, 100% of Fixed Rent for the Demised Premises shall be abated.
(a) In the event (i) the Premises shall be destroyed or so damaged or injured by fire or other casualty during the life of this Lease or (ii) the Premises shall be materially adversely affected by any repairs, additions or alterations required to be performed by Lessor under the terms of this Lease, whereby the Premises shall be consequently rendered either partially or completely untenantable, then within thirty (30) days of the untenantability, Lessor shall provide written notice to Lessee stating the amount of time reasonably estimated by Lessor to complete the restoration of the Premises to the condition that existed immediately prior to the untenantability. (b) In the event Lessor's notice states that the restoration cannot be completed within 180 days from the date of the untenantability, Lessee shall have the option to cancel this Lease by providing written notice to Lessor within ten (10) days of receipt of Lessor's notice. (c) In the event that in Lessor's reasonable opinion the restoration can be completed within one-hundred and eighty (180) days from the date of the untenantability or Lessee does not terminate this Lease as described above, Lessor shall be obligated to complete the restoration.
For the purposes hereof, the “Premises Untenantability Cure Period” shall be defined as four (4) consecutive business days after Landlord’s receipt of written notice from Tenant of the condition causing untenantability in the Premises, provided however, that the Premises Untenantability Cure Period shall be ten (10) consecutive business days after Landlord’s receipt of written notice from Tenant of such condition causing untenantability in the Premises if either the condition was caused by causes beyond Landlord’s control or Landlord is unable to cure such condition as the result of causes beyond Landlord’s control.
(b) Notwithstanding anything to the contrary in this Lease contained, if due to any such repairs, alterations, replacements, or improvements made by Landlord (a “Repair Interruption”) or if due to Landlord’s failure to make any repairs, alterations, or improvements required to be made by Landlord (a “Failure to Repair”), any portion of the Premises becomes untenantable or inaccessible so that for the Premises Untenantability Cure Period, as hereinafter defined, the continued operation in the ordinary course of Tenant’s business is materially adversely affected, then, provided that Tenant ceases to use the affected portion of the Premises for the conduct of its business during the entirety of the Premises Untenantability Cure Period by reason of such untenantability or inaccessibility, and that such untenantability or inaccessibility and Landlord’s inability to cure such condition is not caused by the fault or neglect of Tenant or Tenant’s agents, employees or contractors, Yearly Rent, Tenant’s Proportionate Share of Taxes and Tenant’s Proportionate Share of Operating Costs shall thereafter be abated in proportion to such untenantability until the day such condition is completely corrected and Tenant can use and access the Premises or such portion thereof for the conduct of its business therein. For the purposes hereof, the “Premises Untenantability Cure Period” shall be defined as four (4) consecutive business days after Landlord’s receipt of written notice from Tenant of the condition causing untenantability in the Premises, provided however, that the Premises Untenantability Cure Period shall be ten (10) consecutive business days after Landlord’s receipt of written notice from Tenant of such condition causing untenantability in the Premises if either the condition was caused by causes beyond Landlord’s control or Landlord is unable to cure such condition as the result of causes beyond Landlord’s control. (c) The provisions of Section 15.5(b) shall not apply in the event of untenantability caused by fire or other casualty, or taking (see Articles 18 and 20). Tenant’s sole remedy in the case of a Repair Interruption shall be as set forth in this Section 15.5.
The rent herein required to be paid shall abate during the period of such untenantability.
14.01 SUBSTANTIAL UNTENANTABILITY (a) If any fire or other casualty (whether insured or uninsured) renders all or a substantial portion of the Premises or the Building untenantable, Landlord shall, with reasonable promptness after the occurrence of such damage, estimate the length of time that will be required to substantially complete the repair and restoration and shall by notice advise Tenant of such estimate (“Landlord’s Notice”). If Landlord estimates that the amount of time required to substantially complete such repair and restoration will exceed one hundred eighty (180) days from the date such damage occurred, then Landlord, or Tenant if all or a substantial portion of the Premises is rendered untenantable, shall have the right to terminate this Lease as of the date of such damage upon giving written notice to the other at any time within twenty (20) days after delivery of Landlord’s Notice, provided that if Landlord so chooses, Landlord’s Notice may also constitute such notice of termination. (b) In the event that the Building is damaged or destroyed to the extent of more than twenty-five percent (25%) of its replacement cost or to any extent if no insurance proceeds or insufficient insurance proceeds are receivable by Landlord, or if the buildings at the Project shall be damaged to the extent of fifty percent (50%) or more of the replacement value or to any extent if no insurance proceeds or insufficient insurance proceeds are receivable by Landlord, and regardless of whether or not the Premises be damaged, Landlord may elect by written notice to Tenant given within thirty (30) days after the occurrence of the casualty to terminate this Lease in lieu of so restoring the Premises, in which event this Lease shall terminate as of the date specified in Landlord’s notice, which date shall be no later than sixty (60) days following the date of Landlord’s notice. Notwithstanding the provisions of Section 14.01 above or the provisions of Section 14.03, Landlord shall not terminate this Lease due to a casualty if it actually intends to restore the Premises, as evidenced by Landlord commencing restoration within four (4) months from the date the casualty damage occurred. (c) Unless this Lease is terminated as provided in the preceding Subsections 14.01 (a) and (b), Landlord shall proceed with reasonable promptness to repair and restore the Premises to its condition as existed prior to such casualty, subject to reasonable delays for insurance adjustments and Force Majeure delays, and also subject to zoning Laws and building codes then in effect. Landlord shall have no liability to Tenant, and Tenant shall not be entitled to terminate this Lease if such repairs and restoration are not in fact completed within the time period estimated by Landlord so long as Landlord shall proceed with reasonable diligence to complete such repairs and restoration. (d) Tenant acknowledges that Landlord shall be entitled to the full proceeds of any insurance coverage, whether carried by Landlord or Tenant, for damages to the Premises, except for those proceeds of Tenant’s insurance of its own personal property and equipment which would be removable by Tenant at the Termination Date. All such insurance proceeds shall be payable to Landlord whether or not the Premises are to be repaired and restored, provided, however, if this Lease is not terminated and the parties proceed to repair and restore Tenant Alterations at Tenant’s cost, to the extent Landlord received proceeds of Tenant’s insurance covering Tenant Alterations, such proceeds shall be applied to reimburse Tenant for its cost of repairing and restoring Tenant Alterations.
14.02 INSUBSTANTIAL UNTENANTABILITY Unless this Lease is terminated as provided in the preceding Subsections 14.01 (a) and (b), then Landlord shall proceed to repair and restore the Building or the Premises other than Tenant Additions, with reasonable promptness, unless such damage is to the Premises and occurs during the last six (6) months of the Term, in which event either Tenant or Landlord shall have the right to terminate this Lease as of the date of such casualty by giving written notice thereof to the other within twenty (20) days after the date of such casualty. Notwithstanding the foregoing, Landlord’s obligation to repair shall be limited in accordance with the provisions of Section 14.01 above.
15.UNTENANTABILITY. If the Premises or the Building or any substantial part of either is damaged or destroyed by fire or other casualty, cause or condition whatsoever, such that the damage or destruction cannot be repaired within one hundred fifty (150) days, Landlord may, by written notice to Tenant given within thirty (30) days after such damage, terminate this Lease as to all the Premises covered by this Lease. If the Premises are damaged or the access or use thereof is materially impaired by the damage, then Landlord's termination shall be effective as of the date of such damage; otherwise said termination shall be effective thirty (30) days after receipt of such notice by Tenant. Landlord agrees to give notice (the "Repair Notice") to Tenant within twenty (20) days after Tenant notifies Landlord of any such fire or other casualty and requests a Repair Notice; the Repair Notice will state the time Landlord requires to repair and restore the Premises and/or Building and will contain either a promise by Landlord to complete the repairs and restoration within such time (subject to force majeure), or a statement by Landlord that it elects to terminate by reason of the damage not being repairable within one hundred fifty (150) days. If the Repair Notice is not given by Landlord within the time required or does not contain a promise by Landlord to complete such repairs and restoration within the Required Time (as defined below), Tenant may terminate this Lease by written notice to Landlord provided that Tenant gives such notice within thirty (30)days after expiration of the twenty (20) day period specified above.
21. UNTENANTABILITY. If the premises or the Building are made unfit for occupancy by fire or other casualty, acts of God, or other cause, and cannot be repaired within ninety (90) days, either Lessee or Lessor may elect (a) to terminate this Lease as of the date when the premises or the Building are so made unfit for occupancy, by written notice to the other party, or (b) to repair, restore, or rehabilitate the premises or the Building at Lessor's expense within one hundred eighty (180) days after Lessor is enabled to take possession of all damaged areas and to undertake reconstruction or repairs; and if Lessor elects so to repair, restore, or rehabilitate the premises or the Building, this Lease shall not terminate, but rent shall be abated on a per-diem basis to the extent and for the period that the premises are unfit for occupancy. In the event Lessor shall proceed under (b) above and shall not substantially complete the work within said one hundred eighty (180) day period (excluding from said period loss of time resulting from delays beyond the reasonable control of Lessor) either Lessor or Lessee may then terminate this Lease, as of the last day of such one hundred eighty (180) day period, by written notice to the other not later than ten (10) days after the expiration of said one hundred eighty (180) day period, computed as herein provided, and Lessor shall have no liability to Lessee for failure to restore, repair, or rehabilitate the premises. In the event of termination of this Lease pursuant to this Paragraph, rent shall be apportioned on a per-diem basis to and including the effective date of such termination. Except as provided in this Paragraph, neither party hereto shall have the right to terminate this Lease by reason of damage to, or destruction of, the premises or the Building.
The provisions of this Section 5.3(d) shall not apply in the event of untenantability caused by fire or other casualty, or taking. The remedies set forth in this Section 5.3(d) shall be Tenant's sole remedies in the event of a Service Interruption.
Untenantability refers to a condition or situation where a rental property is not fit for occupancy or use according to the terms of a lease or rental agreement. This can occur due to damages, hazardous conditions, or a failure to meet certain standards such as health and safety codes.
You should consider using the term “untenantability” when evaluating whether a property is suitable for habitation or continued use by a tenant. It is particularly relevant in the following situations:
Damage Assessment: After an event like a natural disaster or a significant accident, to determine if the property can still be lived in.
Health and Safety Evaluations: When assessing whether a property adheres to legal standards for living conditions, including those related to mold, lead, or asbestos.
Lease Disputes: In cases where a tenant claims that the property does not meet the habitable standards agreed upon in a lease, or the landlord asserts that the property remains tenantable despite a tenant’s claim.
When writing about untenantability, make sure to:
Define the Term Clearly: Begin by explaining what constitutes untenantability in the context of your discussion.
Provide Contextual Examples: Use examples to illustrate scenarios where untenantability might be claimed or contested. Clearly outline the conditions leading to this assessment.
Example: After the severe storm, the house’s roof was severely damaged, leading to leaks and untenantable living conditions.
Reference Legal or Contractual Standards: If relevant, mention specific local housing laws or lease agreement terms that define and govern issues of untenantability.
The concept of untenantability is typically found in:
Residential Lease Agreements: Details what constitutes a violation of the habitable condition clause, often including considerations for repairs and remedies in cases of untenantability.
Commercial Lease Agreements: Addresses conditions similar to residential leases but may also include stipulations specific to commercial uses, like business interruption.
Insurance Policies: Certain property insurance clauses may cover losses resulting from untenantability, detailing the insurer’s obligations in such cases.
Property Management Contracts: Stipulates the responsibilities of property managers with regards to maintaining tenantable conditions across rental properties.
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