Alabama Lease Agreement

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Alabama Lease Agreement

An Alabama lease agreement is a lease agreement between the party leasing the property (the Lessor) and the party to whom the property is leased (the Lessee).  This agreement is valid in the state of Alabama and is normally for a specified period of time. This lease agreement can be used for commercial or residential properties. The agreement can be for a period of a year with an option to renew or it may be a month-to-month lease. Under Alabama laws, a month-to-month lease may be terminated with notice of at least one month.

When Do You Need an Alabama Lease Agreement

An Alabama lease agreement is needed when a property is being leased from one party to another. The lease agreement helps to lay down the terms and conditions of the lease. It also states the duties and obligations of the tenant and how he shall use the leased property.

The purpose of the Alabama lease agreement is to formally lay down the terms and conditions of the lease. The agreement takes into account all rights and obligations of both the parties and makes sure that the interests of both parties are protected under the agreement.

The most commonly used Alabama lease agreements are for commercial spaces, a lease with an option to buy (commonly referred to as a lease to own agreement), a month-to-month lease agreement and a residential lease agreement (sometimes referred to as a standard lease agreement).

Inclusions in an Alabama Lease Agreement

The agreement must clearly states the names of the parties between whom the agreement is entered into. This will include the Lessor and the Lessee.  Under Alabama laws, the landlord or the property management company must be identified in the agreement. This includes identifying any individual or business who is authorized to act on behalf of the landlord.

The lease agreement must include a description of the premises and how the premises may be used. It must also lay down the amount of rent and security deposit. Under the laws of Alabama, the security deposit shall not be more than one month’s rent. The term of the lease and whether it can be renewed must also be mentioned.

Apart from this, the agreement must clearly mention under which law it will be governed and how the agreement shall be terminated.

How to Draft an Alabama Lease Agreement

The following are the steps to follow while drafting an Alabama lease agreement:

  • Decide on what type of lease will suit both the parties
  • Decide the term of the lease
  • Decide the amount of rent that will be payable by the lessee and the schedule for such payment
  • Decide the number of occupants who will occupy the leased premises.
  • Draft the agreement while providing for the obligations and duties of both the parties to the agreement
  • Lay out the events of defaults and the remedies for them
  • Make sure the agreement is signed by both the parties

Benefits of an Alabama Lease Agreement

  • The lease agreement provides solid evidence of the existence of property having being leased to the lessee.
  • The agreement will serve as evidence of the terms and conditions under which the property has been leased.
  • It helps to secure the interests of both the parties
  • If the lease agreement is created, the landlord has the right to terminate the lease in case of an default on part of the tenant and the right to recover actual damages.

Consequences of Not Having an Alabama Lease Agreement

  • If a lease agreement is not entered into between the parties, there is no evidence that such a lease exists.
  • In case of default on part of either party, the other party has limited remedies available.

Key Clauses in an Alabama Lease Agreement

The following are the key terms of an Alabama lease agreement:

  • Description of the premises
  • How the premises will be used
  • Term of the lease
  • Amount of rent
  • Schedule for payment of rent
  • Occupants
  • Amount of security deposit
  • Utilities and services
  • Improvements and alterations made by the lessee
  • Default on rent payment
  • Nuisance
  • Obligations of the tenant
  • Maintenance of premises
  • Landlord’s repairs
  • Tenant’s repairs
  • Renewal of lease
  • Landlord’s failure to give possession
  • Inspection by landlord
  • Defects in leased premises
  • Terms for assignment and sublease
  • Events of default
  • Abandonment and re-letting
  • Limitation of liability
  • Indemnity and public liability insurance
  • Modification of the agreement
  • Governing law and jurisdiction
  • Termination of the agreement

What Happens When You Violate an Alabama Lease Agreement

When an Alabama lease agreement is violated by the tenant, the landlord shall serve a notice on him to remedy the breach within a specified time period. If the tenant does the remedy breach within such time, the landlord shall have the right to terminate the lease agreement.  The landlord may recover actual damages and obtain injunctive relief for noncompliance by the tenant with rental agreement or the obligations of the tenant under the applicable laws of Alabama.

If the lease agreement is terminated, the landlord has a right to possession, for rent, and a separate claim for actual damages, for breach of the rental agreement and court costs.

The agreement can also mention that all disputes arising out of the agreement will be subject to the exclusive jurisdiction of a specified court.

Sample of an Alabama Lease Agreement

If you require a template of an Alabama lease agreement, you can download a sample here.

Download Alabama Lease Agreement Template

Alabama Lease

Download this USA Attorney made Original Agreement for only $9.99

This agreement is made between the Landlord and the Tenant on the effective date of 09th November, 2011.

Landlord represented by

Ms. Jackie Collin

Address: 5041 Academy Lane, Bessemer, AL 35022

Contact number: (205) 424-3351

Tenant represented by:

Mr. William Hayden

Address: 5031 Ford PKWY STE 100, Bessemer, AL 35022

Contact number: (205) 612-5442

Duration of contract: 2 years

Terms and Conditions:

  1. The Landlord is the owner of certain real estate situated in Jefferson County, Alabama, such real estate having a street address of 750 Academy Dr., Bessemer, AL 35022 (hereafter referred to as the “Premises”).
  2. Upon the due execution of this Alabama Lease Agreement, the Tenant shall deposit the sum of DOLLARS $ 20,000 with the Landlord, receipt of which is acknowledged by the Landlord.  Such deposit shall be returned to the Tenant less any damages to the Premises upon the termination of this Alabama Lease Agreement.
  3. The said Premises shall be occupied and used by Tenant and the Tenant’s immediate family, consisting of 7 members.
  4. The Tenant shall not assign this Alabama Lease Agreement, or sub-let any license for use of the Premises or any part thereof to anyone who is not part of the family mentioned without the prior written consent of the Landlord.
  5. The Tenant shall not make any improvements or alterations to the Premises or construct any building on the Premises without the prior written consent of the Landlord.

Landlord leases to Tenant the above mentioned Premises together with any appurtenances thereto, for a term of 2 years, such term beginning on 09 November 2011.