ADA Title III for Commercial Landlords and Tenants: Who Is Responsible?
Under the ADA, both the commercial landlord and the tenant are responsible for access at a store or office open to the public. Barrier removal and tax breaks.
By Seayora Editorial Team · Published · Facts checked · 3 min read
Short answer: Under the Americans with Disabilities Act, both the landlord who owns a building housing a place of public accommodation, such as a store, restaurant or office open to the public, and the tenant who operates it are responsible for complying with Title III. A lease can divide the work between them, but it does not change either party’s duty to the public. Existing facilities must remove architectural barriers where that is readily achievable. Small businesses can claim a credit of up to $5,000 a year on Form 8826, and any business can deduct up to $15,000 a year of barrier removal costs.
Key takeaways
- Landlord and tenant are both public accommodations under 28 CFR 36.201(b).
- The lease can allocate responsibility between them, but neither escapes it toward the public.
- Barrier removal is required where it is readily achievable: easily accomplishable without much difficulty or expense.
- Tax help: the disabled access credit (Form 8826) and the up-to-$15,000 barrier removal deduction.
Who is responsible for ADA compliance in a leased space?
Both. The Title III regulation says that both the landlord who owns the building that houses a place of public accommodation and the tenant who owns or operates the place of public accommodation are public accommodations subject to the rules, and that, as between the parties, the allocation of responsibility may be determined by lease or other contract (28 CFR § 36.201(b)). A clause making the tenant responsible decides who pays the landlord back; it does not stop a customer from naming both of them in a complaint.
What does “readily achievable” barrier removal mean?
A public accommodation must remove architectural barriers in existing facilities, including structural communication barriers, where removal is readily achievable, meaning easily accomplishable and able to be carried out without much difficulty or expense (28 CFR § 36.304). The regulation’s examples include installing ramps, making curb cuts, widening doors, installing grab bars and rearranging furniture. What is readily achievable depends on the resources available, so it is reassessed over time rather than settled once. New construction and alterations carry separate, stricter design requirements.
What should a commercial lease say?
- Who handles common areas, parking, entrances and restrooms outside the premises, usually the landlord.
- Who handles the interior layout, counters and fixtures the tenant controls, usually the tenant.
- Who pays for barrier removal triggered by the tenant’s alterations.
- An indemnity running each way, so the party responsible under the lease bears the cost of its own failure.
What tax breaks help pay for access work?
| Incentive | Who qualifies | Amount |
|---|---|---|
| Disabled access credit (section 44, Form 8826) | A business with gross receipts of $1 million or less, or no more than 30 full-time employees, in the prior year | 50% of eligible access expenditures over $250, up to a $5,000 credit a year |
| Architectural barrier removal deduction (section 190) | Businesses of any size | Up to $15,000 a year of qualified expenses that would otherwise be capitalized |
Both can be used in the same tax year (IRS; Form 8826).
Frequently asked questions
Is the landlord or the tenant responsible for ADA compliance?
Both are public accommodations under 28 CFR 36.201(b). The lease can split the work and the cost between them, but each remains responsible to the public.
What is readily achievable barrier removal?
Removing barriers in an existing facility where it is easily accomplishable and able to be carried out without much difficulty or expense, such as adding grab bars or a ramp.
How much is the ADA tax credit?
An eligible small business can claim 50% of eligible access expenditures over $250, up to $5,000 a year, on Form 8826. Separately, any business can deduct up to $15,000 a year of barrier removal costs.
Sources
- 28 CFR § 36.201, General (public accommodations), eCFR
- 28 CFR § 36.304, Removal of barriers, eCFR
- Tax benefits for businesses who have employees with disabilities, Internal Revenue Service
- Form 8826, Disabled Access Credit, Internal Revenue Service
How Seayora helps
Commercial leases: Record which party handles each obligation under a commercial lease.
This article is general information, not legal advice. Landlord-tenant law varies by state and city and changes often, so check the current rule for your property and talk to an attorney before acting on a dispute.
How we write and check these guides: editorial standards.
Related on Seayora
- Renting to Section 8 Tenants: A Landlord’s Guide to Vouchers — Guide. How the Housing Choice Voucher program works for landlords: the HAP contract, inspections and the 2027 NSPIRE change, rent reasonableness, and who pays what.
- VAWA Housing Protections: What Assisted-Housing Landlords Must Do — Guide. The Violence Against Women Act protects survivors in public housing, vouchers, LIHTC and other assisted housing. Who it covers and what owners must do.
- CAN-SPAM for Landlords: Marketing Email Rules for Leads and Tenants — Guide. Which landlord and contractor emails CAN-SPAM covers, the seven requirements for marketing email, the opt-out deadline, and what counts as transactional.
- Digital Leases & eSignature — Feature. Build digital leases from your templates, send them for legally binding eSignature under ESIGN/UETA with a full audit trail, and store executed copies automatically.
- The FARE Act fee disclosure — every fee itemized, checked and signed before the lease — Documentation. Under New York City's FARE Act the landlord gives a new tenant an itemized list of every fee and the tenant signs it before the lease. Seayora checks each fee against the FARE Act and New York's caps, refuses to send one the law forbids, and keeps the signed copy.
- Rental References from Previous Landlords — Documentation. Ask an applicant for a reference from a previous landlord: they name the landlord and agree, the landlord answers a short form about the tenancy, and both you and the applicant see the answers.