Commercial Evictions and Landlord Self-Help Lockouts in Alabama

When a commercial tenant stops paying rent or violates the terms of their lease, the financial impact on the landlord can be devastating. Navigate commercial evictions in Alabama requires a strict understanding that commercial laws are vastly different from residential tenant protections. In the commercial realm, the lease agreement is the ultimate authority, and the courts will generally enforce its terms exactly as written.

Whether you own a retail strip in Birmingham, an office park in Montgomery, or a warehouse in Mobile, acting swiftly and legally is crucial to protecting your property and income. This guide explains the commercial eviction process in Alabama, from self-help lockouts to enforcing a landlord's statutory lien on business equipment. If you need professional assistance to execute an eviction legally, you can find experienced commercial real estate attorneys in our directory.

Step-by-Step Commercial Eviction Scenarios in Alabama

In Alabama, commercial landlords generally have two paths to remove a non-compliant tenant: utilizing a contractual self-help remedy (lockout) or filing a formal Unlawful Detainer action under Ala. Code § 6-6-310. The route you choose depends entirely on the violation and the specific wording of your lease.

Unpaid Rent Lockouts (Self-Help Remedies)

If a commercial tenant fails to pay rent, Alabama common law and precedent, such as Moriarty v. Dziak, 435 So. 2d 35 (AL Supreme Court 1983), generally support a landlord's right of reentry (self-help) if-and only if-the lease explicitly grants this right. This means you can legally change the locks without a court order, provided the lockout is executed 'peaceably' without physical confrontation or a breach of the peace. You must provide whatever notice is required by the lease (e.g., a 5-day Notice to Cure) before changing the locks. If the lease does not explicitly allow self-help, attempting a lockout can expose you to a lawsuit for wrongful eviction and damages.

Holdover Tenants

A holdover tenant is one who remains in the property after their lease has officially expired. If you do not wish to renew their lease, you must be extremely careful not to accept any further rent payments, as doing so may inadvertently create a month-to-month tenancy. To remove a holdover tenant, you typically must issue a written demand for possession. If they refuse to leave, you will file an Unlawful Detainer action. You will file a complaint using Form C-59, Alabama, Unified Judicial System, Statement of Claim (Eviction/Unlawful Detainer) at the appropriate local court, such as the Madison County District Court, Huntsville or the Mobile County District Court, Mobile.

Breach of Use Clauses

Sometimes eviction is necessary not because of money, but because the tenant violates a 'use clause.' For example, if a tenant leased the space for a quiet accounting firm but starts operating a noisy nightclub, they are in breach of the contract. In these cases, you must serve a formal Notice of Default outlining the specific lease violation and giving them the contracted time to cure the issue (usually 15 to 30 days). If they fail to correct the behavior, you can proceed with lease termination and court eviction.

Enforcing the Statutory Landlord's Lien

One of the strongest tools an Alabama commercial landlord has is the statutory landlord's lien. Under Ala. Code § 35-9-60, landlords have a legal lien on the goods, furniture, and effects of the tenant located on the leased premises for the amount of rent owed. This means if a tenant abandons the property or is locked out for non-payment, you have a priority claim over their business equipment (like restaurant ovens or office computers) to satisfy the unpaid rent.

However, enforcing this lien requires a specific legal procedure known as an 'attachment.' You cannot simply sell the tenant's equipment on Craigslist the next day. You must file for an attachment through the court to legally seize and liquidate the property to cover the tenant's debt, ensuring you follow all statutory notice requirements to avoid theft accusations.

How Much Does it Cost in Alabama?

Commercial evictions carry legal and administrative costs. While you can eventually seek to recover these from the tenant (if they have money left), you must front the costs:

• Court Filing Fees: Filing an Unlawful Detainer in an Alabama District Court generally costs between $250 and $350, plus a fee for the Sheriff to serve the summons.
• Attorney Fees: Most commercial landlord-tenant lawyers charge by the hour ($200 to $450/hour). An uncontested eviction might cost $1,000 to $2,500, while a heavily litigated commercial eviction can exceed $10,000.
• Locksmith and Storage: Changing commercial-grade locks can cost $200 to $500. If you must store the tenant's abandoned equipment, you are responsible for commercial storage fees until the lien is properly executed.

How Long Does the Process Take?

If your lease allows for a self-help lockout, the process can take just a few days after the required notice period expires. However, if you must use the formal Unlawful Detainer court process, it will take longer. After the tenant is served with the court papers, they typically have 7 days to file an answer. If they do not answer, you can get a default judgment relatively quickly. If they fight the eviction, securing a court date in a busy jurisdiction like Jefferson or Mobile County can take 4 to 8 weeks. In total, a court-ordered commercial eviction in Alabama usually takes 1 to 3 months.

Frequently Asked Questions (FAQ)