If the landlord breaches a material obligation (covenant) of the lease, the tenant’s obligation to pay rent may be suspended or terminated and the tenant may withhold payment of rent.
For example, in a residential lease, if the landlord breaches the implied warranty of habitability—which is deemed so material or important that it cannot be waived by the tenant—the tenant is considered to be constructively evicted and may remain in the home and suspend rental payments in proportion to the impairment of use and enjoyment of the premises.
In addition, if a residential or commercial tenant is actually or constructively evicted from the premises as a result of events not caused by the tenant—such as partial condemnation or lack of access to the premises—and assuming that the risk of such occurrence is not allocated to the tenant in the lease—the tenant’s rental obligations terminate if (and only if) the tenant vacates the premises.
But withholding rent is usually not the best way for a tenant to get the landlord to make repairs or fix another problem. For example, the lease agreement may require the tenant to provide one or more notices of a needed repair and may prohibit the tenant from withholding rent during a reasonable time period for making the repairs.
If the landlord doesn’t timely respond to a routine or emergency repair request, the tenant may be able to have the repair made and seek reimbursement from the landlord. And in that case, the tenant may be able to negotiate with the landlord for a reduction in the rent due for the time in which the repair was not made. This is often a better approach for the tenant (and for the landlord) than refusing to pay the rent and risking an eviction lawsuit—and ultimately, eviction.
Laws vary from state to state and the tenant’s ability to withhold rent depends on the specific terms of the lease agreement and the specific facts and circumstances of the needed repairs or disturbance, for example. For these reasons, tenants and landlords are often well served by getting advice from a lawyer who practices landlord-tenant law in their state.
In New Jersey, if a landlord breaches a material obligation of the lease, such as the implied warranty of habitability, the tenant may have the right to withhold rent in proportion to the impairment of use and enjoyment of the premises. This concept is known as 'constructive eviction.' Additionally, if a tenant is actually or constructively evicted due to events not caused by them, such as partial condemnation or lack of access, and the lease does not allocate the risk of such events to the tenant, the tenant's obligation to pay rent may terminate upon vacating the premises. However, withholding rent is not typically the first recommended course of action. New Jersey law often requires tenants to provide notice to the landlord and allow a reasonable time for repairs before taking further action. If the landlord fails to respond to repair requests, the tenant might be able to make the repairs themselves and seek reimbursement or negotiate a rent reduction. Since laws and lease terms vary, tenants and landlords are advised to consult with an attorney familiar with New Jersey landlord-tenant law to navigate these issues.