An Alabama standard residential lease agreement is a form used for leasing out a space or property to a rent-paying tenant. The contract establishes how the property can be used, the rights of both the tenant and landlord, the amount of each rent payments, and other essential conditions. After both parties have signed the agreement, the landlord will require the tenant to pay a security deposit, which serves as insurance to cover the cost of any damage to the property, missed rental payments, or any other expenses for which the tenant can be held liable.
Alabama is among the most landlord-friendly states. Landlords are not required to obtain rental licenses, and state law in Alabama does not cover late rent fees. This means landlords can set late fees at whatever rate they wish within the rental agreement. Landlords are required to deliver a fourteen (14) day written notice for eviction due to breach of contract, and only seven (7) days for eviction due to unpaid rent. Also, tenants in Alabama are not allowed to withhold rent under “repair and deduct” clauses common in other states when landlords fail to make important repairs necessary to keep the rental habitable.
Security deposits ( § 35-9A-201(a) : Security deposits cannot exceed one month’s rent . Additional deposits are allowed for pets, undoing tenant alterations (including handrails and ramps for the handicapped), and any specific tenant activities that increase the risk of liability . Deposits must be repaid thirty-five (35) days after the tenant moves out, minus damages beyond normal wear and tear or repair of alterations.