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And in California, it is illegal to rent a unit without a certificate of occupancy. A certificate of occupancy is a document that confirms that a building complies with all state and local building codes and is safe to live in. A rental unit without a certificate of occupancy is illegal.
Getting a certificate of occupancy can be a lengthy and expensive process, especially if you need multiple inspections. Rules around them vary significantly from market to market, and one may not even be needed in your local market. But in areas where theyre required, theyre non-negotiable.
Yeah, new buildings must have a C of O before anyone can occupy it, although they may get a TC of O, which is a temporary certificate which allows move ins. Even regular leases have language that absolves the LL if you cant take occupancy by the start date, usually the only options being wait or move on.
Opening a building to use without a CO can have major consequences for the owner. In these cases, many local governments issue lawsuits or repeated fines. Most buildings cannot be sold without a certificate of occupancy.
A TCO allows occupancy of a structure prior to final approval by all developmental related Departments. Traditionally, a TCO has been approved for a Tenant/Owner to gain access to a commercial occupancy for stocking of inventory, staff training, installing, and testing of computer systems etc.

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The California Building Code (CBC) states that no building or structure can be used or occupied until a building official has issued a certificate of occupancy. The penalties for operating without a certificate of occupancy in California can include fines of up to $1000 a day until the violation is corrected.
a Certificate of occupancy (COO) is necessary for people to occupy the property. without a COO, you ca not legally collect rents as you are renting space that no one should live in. The COO is issued when the building permit is final.
The California Building Code states that all businesses shall have a valid Certificate of Occupancy.

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