Breaking a Commercial Lease in Alabama & Agreement Requirements
Everything you need to know about breaking a commercial lease in Alabama, required lease agreement clauses, and the statute of frauds.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Drafting a solid contract is essential, especially if a tenant starts looking for reasons for breaking a commercial lease in Alabama. Unlike residential tenants who enjoy state-mandated protections, commercial leases are treated strictly as binding business contracts governed primarily by Title 35, Chapter 9 of the Code of Alabama 1975 and general contract law.
The Statute of Frauds
Official Law Citation: The rules and regulations outlined on this page are strictly configured under the official Code of Alabama 1975. Landlords must always ensure their lease agreements directly adhere to this state code.
Under Alabama's Statute of Frauds (Code of Alabama 1975, § 8-9-2), any commercial lease intended to last longer than one year is void unless the agreement is in writing and signed at the foot (subscribed) by the party to be charged.
While it's technically possible to have an oral agreement for a lease under one year, it's a terrible idea. Running a business involves complex liabilities like insurance, maintenance, and taxes. A verbal agreement simply won't cut it.
Drafting the Rental Agreement
To make sure your Alabama commercial rental agreement holds up in an eviction or lawsuit, it needs several key components. Make sure you include the full legal names of both businesses and a highly specific description of the property.
To be legally valid and executed under Ala. Code §§ 35-4-20 and 35-4-23, all written leases must be either attested by at least one witness who can write their name or acknowledged before an authorized officer, such as a Notary Public.
Furthermore, under Code of Alabama 1975, § 35-4-6, no leasehold estate can exceed 99 years. If you are signing a lease that lasts over 20 years (including all renewal options), Alabama requires it to be officially acknowledged and recorded with the local judge of probate within one year of execution; otherwise, the portion of the lease exceeding 20 years is void.
Dealing with Early Termination
Tenants often ask for an early out. You should explicitly lay out the rules for a commercial lease termination notice within your contract. Will the tenant owe a penalty fee to break the lease? Do they need to provide a 90-day notice?
Under Ala. Code § 35-9-6, if a tenant breaches any lease condition (default), the landlord may terminate the tenancy by providing the tenant with a 10-day notice to quit. This statutory minimum applies unless the lease agreement provides for a longer notice period. You must outline what constitutes a default and whether the tenant can sublet the space to another business. By putting the termination terms in writing, you eliminate the guesswork if the tenant decides they want to leave early.
Staying Updated on Alabama Property Laws
Keeping up with exactly how these rules evolve is vital to protecting your investment. Alabama regulations and local zoning, building, and fire codes can shift, meaning what is perfectly legal today might require a new lease addendum tomorrow. Commercial properties are explicitly excluded from the Alabama Residential Landlord and Tenant Act (ARLTA). Always ensure your rental operations align with the most recent local guidelines and statewide precedents to avoid easily preventable compliance fines and prolonged disputes with renters.
Sources & Official References
Frequently Asked Questions
▶What are the Alabama landlord-tenant laws every property owner should know?
Property management in the Yellowhammer State is governed heavily by the Alabama Uniform Residential Landlord and Tenant Act (AURLTA). Overall, Alabama landlord tenant laws are considered highly favorable to property owners, with no rent control and a fast eviction notice timeline. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the Alabama eviction process and how long does it take?
The Alabama eviction process requires landlords to provide written notice to tenants before filing a court action. The type and length of notice depends on the reason for eviction — typically shorter for non-payment of rent and longer for lease violations or no-fault terminations. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in Alabama. The full court process varies but typically takes several weeks.
Read the complete guide▶What are the Alabama security deposit rules and return deadlines?
Alabama has specific rules governing how much landlords can charge for security deposits, how deposits must be held, and the deadline for returning deposits after a tenant moves out. Landlords must provide an itemized statement of any deductions made from the deposit. Failure to comply with deposit return deadlines can result in penalties and the forfeiture of the landlord's right to claim deductions.
Read the complete guide▶What are the Alabama rent increase laws and caps for landlords?
Alabama has specific rules governing when and how landlords can increase rent. During a fixed-term lease, rent generally cannot be increased unless the lease explicitly allows it. For month-to-month tenancies, landlords must provide proper written notice before an increase takes effect. Check whether Alabama has any local rent control ordinances that may impose additional caps or requirements.
Read the complete guide▶What is the grace period for late rent in Alabama?
Alabama has specific rules regarding grace periods for late rent and the amount that can be charged as a late fee. Late fee provisions must be stated in the lease agreement, and fees must be reasonable. Check Alabama state law and any applicable local ordinances for the exact grace period and late fee limits that apply to your rental property.
Read the complete guide▶What disclosures must Alabama landlords provide to tenants?
Alabama landlords must provide certain disclosures to tenants before or at the time of lease signing. Common required disclosures include lead-based paint hazards (for pre-1978 buildings, a federal requirement), the identity of the landlord or property manager, and any known material defects in the property. Additional state-specific disclosures may include flood risk, mold hazards, and environmental conditions.
Read the complete guide▶What are the Alabama lease requirements for rental properties?
Alabama recognizes both written and oral leases, though written leases are strongly recommended for terms longer than one year. Lease agreements should include the rent amount, payment due date, security deposit terms, maintenance responsibilities, and rules regarding entry, pets, and subletting. Certain lease clauses that waive tenant statutory rights may be void and unenforceable under Alabama law.
Read the complete guide▶What are Alabama landlord maintenance obligations and habitability standards?
Alabama landlords must maintain rental properties in a condition that is fit for habitation and complies with applicable building, housing, and health codes. This includes maintaining structural integrity, plumbing, heating and cooling systems, electrical systems, and pest control. Tenants typically have the right to request repairs in writing, and if repairs are not made within a reasonable time, tenants may have legal remedies available.
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