SAN DIEGO — Some businesses in Southeast San Diego are still working to cleanup from last week’s devastating flooding. Viewers asked CBS 8 if they're still required to pay rent while their doors are closed.
CBS 8 visited an auto repair shop, Motor Car Services, in Logan Heights where floodwaters reached shoulder height last Monday. They say the shop suffered $500,000 in damage. More than 25 cars went under water.
"All my customers cars were flooded and damaged. It's devastating," said shop owner Richard Luarca.
Luarca opened the shop more than two decades ago. He's now working to clean up the pieces and says most of the cars are a total loss.
Car engines, parts, electric tools and documents all fell victim to the flood waters. Oil spilled everywhere and hazmat was called. The shop can't operate and has been temporarily shut down.
"We're losing. Everyone is not making money we're just losing," Luarca said.
"It's just heartbreaking it makes you want to cry," said Arturo Lopez, an employee at the shop.
They asked if landlords can still charge rent from a business that is shut down from a natural disaster like flooding.
"Residential leases and commercial leases are treated very different," said John Heilman, a professor at Southwestern Law School.
He explained how they differ.
"In a commercial lease yes, usually the obligation to pay rent would continue unless there were previsions in the lease that would state otherwise," he said.
Heilman says a landlord in a residential lease for an apartment is required to maintain a livable space and would have to provide alternative housing to continue charging rent from the displaced tenant.
A commercial lease for a business doesn't work the same way.
"The law is gonna be more hands-off and allow the parties to negotiate the terms when it's a commercial lease," he said.
He says more often than not that the business will need to keep paying rent. To better protect yourself, he recommends businesses get business interruption insurance. This would help cover costs while a business is inoperable because of unforeseen circumstances like flooding.
San Diego's Black Chamber of Commerce is accepting grant applications to help Southeast San Diego businesses.
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