We have been talking a lot about the new landlord tenant law that took effect last year. Since this new law is so important to Alabama property owners, we are going to spend a little time going over all of the things you need to know to ensure that you are in compliance.
Today’s Topic: What Happens in Case of Catastrophe?
Accidents happen. Unfortunately for property owners and tenants, sometimes when accidents happen the property may be damaged in such a way that it cannot be used for its intended purpose. Perhaps the problem is water, smoke or fire damage that requires significant repair. It could also be that a storm causes significant damage to the property that makes it no longer suitable for occupants. As long as the reason for the damage is not the tenant’s negligence or intentional acts, the landlord tenant act makes clear that there is no duty on the part of the tenant to remain in, or pay rent for, a property that is severely damaged. If the unit is destroyed or severely damaged the tenant can choose to vacate the property by giving the landlord notice of termination of the lease or stay in the undamaged portion of the property at a rental rate that is reduced by an amount that will compensate for the loss of use of the damaged portion of the property.
§ 35-9A-406. Fire or casualty damage.
(a) If the dwelling unit or premises are damaged or destroyed by fire or casualty not caused by the tenant to an extent that enjoyment of the dwelling unit is substantially impaired, the tenant may:
(1) immediately vacate the premises and notify the landlord in writing within 14 days thereafter of the tenant’s intention to terminate the rental agreement, in which case the rental agreement terminates as of the date of vacating; or
(2) if continued occupancy is lawful, vacate any part of the dwelling unit rendered unusable by the fire or casualty, in which case the tenant’s liability for rent is reduced in proportion to the diminution in the fair rental value of the dwelling unit.
(b) If the rental agreement is terminated pursuant to this section, the landlord shall return all security recoverable under Section 35-9A-201 and all unearned prepaid rent. Accounting for rent in the event of termination or apportionment shall be made as of the date of the fire or casualty.
