Property Maintenance ## California Habitability Standards California Civil Code §1941 establishes the implied warranty of habitability — a non-waivable obligation that every residential landlord must maintain the rental unit in a habitable condition throughout the tenancy. "Habitable" is defined by a specific list of required conditions: 1. Weatherproof and waterproof structure — effective roof, windows, and exterior walls 2. Functional plumbing — hot and cold running water; adequate sewage disposal 3. Functioning heating — capable of maintaining 70°F in all habitable rooms 4. Working electrical — adequate wiring and lighting in all common areas and habitable spaces 5. Adequate garbage receptacles — with regularly scheduled pick-up 6. Pest and rodent free — free from vermin infestation 7. Clean common areas — hallways, stairways, lobbies 8. No lead paint hazards — compliance with lead paint disclosure and remediation rules A rental unit missing any of these conditions is legally uninhabitable. A landlord who allows a unit to become uninhabitable risks: - A tenant repair-and-deduct action - A rent withholding defense in eviction proceedings - A lawsuit for breach of the warranty of habitability - City inspection and housing code enforcement action --- ## Maintenance vs. Capital Improvement Understanding the distinction between maintenance and capital improvement matters for accounting, taxation, and owner reporting: Maintenance/Repair: - Restores an item to its original working condition - Deductible as a current business expense for tax purposes - Examples: fixing a broken faucet, patching a hole in drywall, repairing a fence, replacing a broken window Capital Improvement: - Adds value, extends useful life, or adapts the property to a new use - Must be capitalized and depreciated over time (not fully deducted in the year…
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