Landlords May Have to Pay Tenants
Revised Landlord/Tenant Act Requires Revision of Lease Agreements
The Alabama Legislature has enacted a new law requiring landlords to revise the rental agreements, or face penalties for failing to do so.
In an effort to increase protection to renters, the Alabama Legislature has enacted a new law requiring landlords to revise their rental agreements. The changes require elimination of some lease provisions which have been used to give landlords an unfair advantage over tenants in court. Under the new law, such provisions will not only be unenforceable, but may even result in the landlord having to pay money to the renter.
Alabama Code Section 35-9A-63 sets forth the specific provisions which are now prohibited in rental agreements. As of January 1 of 2008, no new lease may include these provisions and already-existing leases must be revised to eliminate them. The restricted language is explained below.
- No Waivers of Statutory Rights. Subsection (a)(1) of the statute prohibits lease provisions which require tenants to waive rights that have been granted to them by statute, specifically those rights found in Alabama Code Sections 35-9A-204 (landlord to maintain premises), 35-9A-401 (noncompliance by the landlord), and 35-9A-404 (wrongful failure to make available heat, water, hot water, or essential services). It further prohibits requiring tenants to waive statutory protections regarding their security deposits, and prohibits the landlord from denying the tenant of rights they have under the law of unlawful detainer.
- No Confession of Judgment. Some landlords have inserted provisions into their lease agreements under which a tenant authorizes another person to confess judgment on claims arising out of a lease agreement. In other words, such leases permit a person other than the tenant to consent to a judgment being entered against the tenant, even if the tenant disputes the claim. These provisions are now unenforceable under 35-9A-63(a)(2).
- Attorneys Fees. Provisions which require the tenant to pay the landlord’s attorney’s fees or the cost of collection are prohibited and are unenforceable under subsection (a)(3) of this statute.
- Liability and Indemnification. Under subsection (a)(4) of this law, leases may no longer require the tenant to exculpate or limit the legal liability of the landlord under the lease. Further, the tenant cannot be required to indemnify the landlord for that liability or for the costs connected with it.
If the landlord includes lease provisions violating any of the four categories described above, those terms of the rental agreement are unenforceable. Additionally, if a landlord deliberately uses language in the lease that the landlord knows is prohibited, the landlord can be ordered to pay compensation to the tenant. The tenant may recover actual damages suffered by the tenant, plus an amount not to exceed one month’s periodic rent, and can even recover the tenant’s reasonable attorney’s fees.
These restrictions on rental provisions must be taken seriously by Alabama landlords, and tenants who lease property in Alabama should make themselves fully aware of their rights under the law. Unethical landlords who attempt to operate their business in ways that exploit their tenants may find themselves paying money to the renters, rather than the other way around. Landlords should immediately take steps to revise their leases to comply with the new statutory requirements.
