Legal Definitions - abatement clause

An abatement clause is a specific provision found within a lease agreement that allows a tenant to temporarily reduce or suspend their rent payments if the leased property becomes unusable or inaccessible due to circumstances beyond human control. These circumstances are often referred to as "acts of God," such as natural disasters, which make it impossible for the tenant to occupy or use the property for its intended purpose.

Here are some examples illustrating how an abatement clause might apply:

• Commercial Property Damaged by Hurricane: Imagine a small bookstore that leases a storefront in a coastal town. Their lease agreement includes an abatement clause. A powerful hurricane strikes, causing significant flooding and structural damage to the building, rendering the bookstore completely unusable for three months while repairs are made. Due to the abatement clause, the bookstore owner would not be required to pay rent for those three months, allowing them to allocate resources towards rebuilding their business rather than paying for a space they cannot occupy.

• Residential Apartment Uninhabitable After Earthquake: Consider a tenant renting an apartment in a multi-story building. Their lease contains an abatement clause. A severe earthquake occurs, and while the building remains standing, it is declared structurally unsafe by city inspectors, requiring all residents to evacuate immediately for an indefinite period. The abatement clause would relieve the tenant of their obligation to pay rent for the duration that the apartment is uninhabitable and they are unable to live there, preventing them from paying for a home they cannot use.

• Industrial Warehouse Inaccessible Due to Wildfire: A logistics company leases a large warehouse to store goods for distribution. Their lease includes an abatement clause. A major wildfire breaks out in the region, leading to mandatory road closures and evacuation orders that make the warehouse completely inaccessible for several weeks, even though the building itself is undamaged. Because of the abatement clause, the logistics company would be able to temporarily suspend or reduce its rent payments for the period the warehouse is inaccessible and cannot be used for its operational needs.