Decoding Alabama Rental Agreements: A Guide for Tenants and Landlords

Main Components of an Alabama Lease

While there are many forms a rental agreement comes in it should be entered into for the benefit of both parties and not skewed so as to benefit one party or the other. These agreements typically include a provision which allows either party to terminate the agreement if there is a breach. However, when the landlord is the party which has breached the agreement the tenant is usually entitled to remedies that include renting and repairs being paid for by the landlord, if the rent is being paid. Before finding a landlord in breach, tenants are required to notify the landlord of the breach and give them time to fix the problem before they can claim the landlord has breached the lease agreement.
There are three basic elements that should be included in a residential rental agreement . They are:
The lease term – how long is the residence being rented? When does the tenancy begin and terminate? Payment – how much and when will the rent be paid? Will it be due on a set date (1st of the month) or is it based on when the tenant moved in? Another thing to consider is how will the rent be paid? By check, direct deposit, cash, etc?
The parties to the agreement – who are the landlord and tenant? Where do they live? Where will the tenant send payment each month? Is there a company or an individual managing the property for the landlord? If so, include their contact information and ensure the tenant can reach them in a timely manner.
Once the lease for a rental agreement has been signed it becomes legally binding on the parties. This means both parties have certain rights and responsibilities. As long as a party is in compliance with all terms of the lease no action – such as eviction – can be fully carried out. Renters can become confused about their rights and responsibilities with some lease terms but can seek help from lease attorneys in their area.

Legal Criteria and Regulations

In Alabama, the legal requirements and regulations regarding rental agreements are governed by the Alabama Uniform Residential Landlord and Tenant Act. This Act outlines the responsibilities and rights of both landlords and tenants. The first step in understanding your rights and responsibilities when entering into a residential lease is reading our blog post on Do I Need a Residential Lease? Once you have read the basic information in the blog post, below is an overview of the legal requirements and regulations of rental agreements in Alabama.
What are the legal requirements for a rental agreement in Alabama?
Under Alabama law, a rental agreement between a landlord and tenant must be in writing if it will be longer than one year. However, even if the rental agreement is under one year, it is still best to have it in writing to protect both parties. Under Alabama law, a rental agreement will be created if rent is paid and the tenant is allowed into the property to occupy it, even if there is no written rental agreement.
What disclosures are required as part of a rental agreement in Alabama?
All rental agreements must comply with federal law. Most states have some federal laws that apply to rental agreements but Alabama has laws that require compliance with both federal laws and Alabama’s own laws. Alabama does not have many attorney general opinions or case law interpreting the applicability of Alabama laws and federal laws but it is important to research how certain federal laws may apply to your rental agreement. The following is a summary of federal law requirements.
Lead Paint Disclosure. The EPA requires disclosure of lead paint if the property was built prior to 1978. This is a common federal law interpretation but different states may have different interpretations. Many put this in their rental agreements as a separate document.
Asbestos Disclosure. If the property contains asbestos, the landlord must provide a separate disclosure of the presence of asbestos. As stated above, different states have different interpretations so be sure to research your state’s law as it pertains to asbestos.
Under Alabama law, the landlord must provide a dwelling that is fit for human habitation and maintain all common places in the manner that ensures this fitness.
Under Alabama law, the landlord has the following obligations:
The following are some important recommendations. Please note that these are just suggestions from our experience and may not apply to your particular situation. It is always best to have a real estate attorney draft a rental agreement specific to your transaction.
Keep in mind that if you are a landlord renting your property, even if you do not use an agent, the Fair Housing Act still applies to you and so do the state and local laws. This means that landlords cannot refuse to rent to applicants because they are members of a protected class under these laws. They also cannot treat tenants differently such as: charging more for security deposits, not allowing them to have pets, charging more or less rent because they are pregnant and so forth… basically, do not ever treat a tenant differently based on their race, gender, religion, disability, age, marital status, source of income, origin, sexual orientation, and the like…. And under Alabama law, as in most states, do not ever discriminate based on whether the applicant has children.

Typical Provisions in an Alabama Rental Agreement

Common clauses found in Alabama rental agreements include security deposit language, maintenance responsibilities, late fees and late payment policies and rent increase provisions. Further, lease agreements will typically contain pet restrictions, policies about smoking or drugs, and utility payments. Here are some definitions of common terms you will find in your rental agreements.
Late fees: Typically, a lease will contain a policy about late charges that is rendered effective on the 5th or 10th of the month. Rent Increase: Most leases provide that either party can increase the rent provided there is a written notice a certain number of days prior to the end of the rental term. Pets: Most landlords desire no access to the land or an outside pet yard when there are pets in a unit. Further, most leases also have some provision stating if the art pet has any damage to the unit, the tenant is responsible for the repairs. Smoking: Most leases will not allow smoking. If a lease has language allowing smoking, it is typically required a tenant only smoke in a specific area of the property. Drugs: Most leases do not allow manufacture or distribution of drugs. Some leases also have a written standard of conduct of each tenant while residing within a rental property. Security Deposits: The law in Alabama requires an itemized list of all damage over normal wear and tear which must be provided to the tenant within 60 days of vacancy. Additionally, the security deposit has to be returned to the tenant within certain time frames as well, depending on the amount of the deposit. Improvements: Improvements placed in the unit by a tenant typically become the property of the landlord at the end of a rental agreement. Maintenance: This is a grey area. Most rental agreements will state that tenants are responsible for changing light bulbs, batteries in smoke alarms, cleaning the gutters and providing a safe environment for guests and visitors. However, the law for appliance repairs is unclear.

Changing and Ending a Rental Agreement

The process for modifying or terminating a rental agreement in Alabama is generally set forth in the terms of the agreement itself. Unless you have the lease in front of you, it can be difficult to know whether the agreement can be modified or terminated and if so, how.
Most of the times a lease may be modified, the parties involved have an easy enough time coming to a new written agreement. This is especially true when the agreement is relatively short (such as a one-year lease). Renewal of the original agreement is usually on the terms of the second lease. The new lease will usually state that it replaces the prior lease, but will name the same parties.
Because leases are for three-year terms under Alabama law , most lease agreements state that they automatically renew each term. But if a tenant does not want to renew, they must give the proper notice. So again the lease agreement governs the parties as to what is considered proper notice and how it should be given.
A lease may be terminated due to failure to pay rent. If a tenant fails to pay rent, the landlord may serve the tenant with a three-day notice before proceeding with a legal eviction proceeding. The lease agreement may also specify other grounds for termination.
Notice issued under a residential lease agreement in Alabama must be in writing and served on the other party by:
Finally, the parties may in writing agree to modify the lease, regardless of the nature and extent of the proposed alteration.

Addressing Landlord and Tenant Disputes

Despite best efforts to make everything clear in a rental agreement, misunderstandings and disagreements can arise between landlords and tenants. Some common disputes in Alabama include: To avoid misunderstandings, agreements should be specific and property inspections should be done before the lease is signed with both parties present possible damage and issues should be noted and documented. The first step in resolving a dispute is to communicate. Know your rights and responsibilities under the rental agreement and Alabama law. Make sure you’re clear on the problems you both have with the other party; put them in writing and send them to the other party. If the dispute isn’t resolved, and even if you don’t have a written rental agreement, Alabama law provides some limited protections for renters to allow them to get out of the rental agreement. You may also want to consider talking with a mediator or using a mediation service that’s impartial and third party in order to settle disputes without resorting to litigation. Negotiating a legal settlement of the dispute is another option, as is pursuing arbitration or asking for a Rental Housing Commission hearing. If all else fails, getting a court order to terminate a rental agreement or determine its extent and terms may be your best option. Either party may be entitled to damages, including excess rent, late fees, interest, differences between current rent and rent – if favorable to the tenant – prevailing rates for comparable rentals in the area, costs for repairs and replacement, difference between agreement rent and rental market value, breach of contract damages, and expenses of finding new rental arrangements. If the other party acts in bad faith or in contravention of Alabama landlord-tenant law and regulations, you may be entitled to treble damages.

Seeking Legal Assistance with Rental Agreements

If you’ve become embroiled in a dispute with the landlord or tenant regarding the terms of your rental agreement, it may be time to enlist the assistance of a lawyer. If your case goes to court, having a rental agreement attorney by your side can help avoid complications. Finding an experienced attorney is often as simple as searching for local firms online. For example, if you’re located in Montgomery, begin your search with "Montgomery, Alabama rental agreement lawyer." Spend some time reviewing the attorney’s websites to assess their experience and approach to rental agreements. When you’ve narrowed down your options, make a list of questions to ask during a free consultation. It’s best to consult multiple lawyers before making your decision. You might ask about the following points: Alternative dispute resolution (ADR) – In most cases, mediation or arbitration resolves rental agreement issues without involving the court system , and many Alabama lawyers are willing to try this on behalf of their clients. Ask how likely your attorney is to recommend or pursue ADR before filing any legal action. Legal fees – What is the hourly or flat fee for each attorney or paralegal working on your case? Are payment plans available? If you are a low-income individual, you may be eligible for legal aid or pro bono services through an Alabama bar.
The Alabama State Bar Association can connect residents with local legal aid organizations throughout the state to provide low- and no-cost legal representation for those in need. All participating lawyers have agreed to take on a certain number of cases each year. The program typically serves the most disadvantaged members of society, including veterans and the elderly. Affordable legal help for housing issues may also come from local bar associations, pro bono legal clinics, and other statewide organizations. Take some time to explore the options in your area.