Alabama Property Management Laws & Landlord-Tenant Laws

Mastering Alabama's property management laws is essential for landlords and property managers due to its complexity and variation across states. This guide serves as an authoritative overview of Alabama's real estate laws, offering direct access to official regulations and additional resources for a deeper understanding. It equips property professionals with the necessary knowledge to navigate the legal landscape effectively, ensuring compliance in property rental and tenant selection within Alabama.

Key tenant, landlord and property management laws in Alabama include:

‍Security Deposits: Limited to not more than one month's rent, excluding pet or increased liability deposits. Must be returned within 60 days of lease termination, barring deductions for damage or unpaid rent.

• Lease and Termination: Fixed-term leases are valid for one year unless specified otherwise. Tenants can terminate leases early under certain conditions such as landlord's breach of lease terms or for active military duty.
• Rental Application: Landlords can collect application fees and conduct background and credit checks. Discrimination in tenant screening based on protected classes is prohibited.
• Maintenance and Repairs: Landlords are responsible for property upkeep to ensure it's safe and habitable. Tenants must maintain cleanliness and report issues promptly. There's no state law specifying repair timelines.
• Right to Privacy: Landlords must provide at least two days' notice before entering a tenant's dwelling, except in emergencies or with a court order.
• Disclosures: Landlords must inform tenants of property management changes and comply with health and safety codes, including addressing mold and lead paint, where applicable.
• Retaliation: Landlords are prohibited from retaliatory actions against tenants for exercising their legal rights.

Alabama's Property Management Licensing Requirements

Alabama's real estate law mandates specific licensing for property management. Notably, the requirement for on-site managers to hold real estate licenses has been abolished (34-27-2b), yet licensed real estate firms managing large residential properties must adhere to these laws. To qualify for a real estate license in Alabama, applicants must:

• Be at least 19 years of age.
• Hold U.S. citizenship or permanent residency, with nonresidents eligible upon signing an affidavit.
• Demonstrate reliability and competence in property management.
• Have no revocations or rejections of a real estate license in any state within the previous two years.

These stipulations ensure that property management in Alabama is conducted by qualified and trustworthy professionals.

Alabama Rental Application Regulations

In Alabama, landlords and property managers are generally allowed to collect application fees from potential tenants, despite the repeal of specific fee regulations under the Landlord-Tenant Act by Act 2006-316 in 2007. When screening tenants, there are no state restrictions on conducting criminal background or credit checks. However, the Alabama Fair Credit Code (5-19-1) does regulate how consumer credit information is utilized, although no specific state laws detail the rights of property managers to access credit reports. Local, county, or federal laws may also influence the screening process

Furthermore, the Alabama Fair Housing Law (24-8-4) prohibits discrimination in tenant screening based on race, color, religion, sex, familial status, or nationality. These regulations ensure a fair and equitable application process, guiding landlords and property managers in maintaining compliance while selecting tenants.

Alabama Security Deposit Regulations Overview

In Alabama, the law restricts landlords from charging move-in fees beyond the security deposit, except for pet ownership or other increased liability risks associated with the tenancy. The security deposit must not surpass one month's rent, unless justified by these exceptions. Although state law does not specify how security deposits should be handled during occupancy, local or federal regulations may apply.

Landlords are obligated to refund security deposits within 60 days post-tenancy termination and property handover, barring deductions for property damage or unpaid rent. In cases where deductions are made, landlords must provide an itemized statement detailing the reasons and amounts withheld. Failure to return the deposit within the specified timeframe subjects landlords to pay twice the amount of the original deposit as penalty.

Tenants must provide a forwarding address upon lease termination to facilitate the return of the deposit. If a tenant fails to claim the returned deposit within 90 days, the landlord has the right to cancel the check and retain the funds. These regulations ensure a structured and fair process for handling security deposits in Alabama, balancing protections for both landlords and tenants.

Alabama Lease and Rent Regulation Summary

In Alabama, lease agreements with a fixed term longer than one year are considered valid only for one year, as per state law (35-9A-162). Absence of a specified term results in the lease defaulting to a week-to-week or month-to-month arrangement, based on the rental payment frequency.

Landlords have the right to terminate a lease if tenants violate terms, such as non-payment of rent or property damage, with a minimum notice of seven days for the tenant to vacate, extendable at the landlord's discretion (35-9A-421a). For month-to-month leases, a 10-day notice is required for termination (35-9-5). Tenants can terminate leases without penalty if landlords breach contract terms, given a 14-day notice and a detailed account of the breach is provided (35-9A-401).

Special considerations apply to service members, who may terminate leases under federal law if deployed over 50 miles away for at least 90 days, with appropriate written notice. Alabama does not offer specific lease termination rights for victims of domestic violence, though other laws may apply. Landlords must provide 30 days’ notice for month-to-month lease changes or terminations, and must wait until the end of a fixed-term lease to make changes impacting termination (35-9A-461).

Regarding rent and late fees, Alabama law does not specify notice periods for rent increases or cap amounts but advises against discriminatory increases (24-8-4). No state law sets a grace period or limits late fees; such terms must be outlined in the rental agreement, with local or federal laws potentially influencing these aspects.

Alabama Landlord Disclosure and Responsibility Guide

In Alabama, landlords are mandated to notify tenants in writing about changes in property management or ownership, detailing the authorized management entity and any contact information changes, as stipulated by law (35-9A-202-a). Landlords have the option to appoint a designated agent for handling such disclosures (35-9A-202-2).

Regarding health and safety, there are no specific state laws for mold disclosure. However, landlords must adhere to building and housing codes ensuring properties are safe and habitable, which includes addressing mold issues promptly (35-9A-204-1). Similarly, while there are no state-specific regulations for lead paint disclosures, compliance with applicable municipal, county, or federal laws is required.

Landlord entry into a tenant’s residence requires a minimum two-day notice, except under certain conditions like emergencies or court orders (35-9A-303). Tenants can deny entry if proper notice is not given or if entry attempts occur outside regular hours or for unlawful reasons.

Landlords bear the responsibility to maintain habitable living conditions, ensuring compliance with building codes, safety of common areas, functional utilities, and timely repairs (35-9A-204). This includes providing adequate garbage disposal facilities and ensuring access to clean water and reasonable heating (35-9A-204-5, 35-9A-204-6). While Alabama law does not specifically mandate landlords to provide locks and keys, or move-in inspections, maintaining security measures and property inspections might be governed by local or federal regulations.

Retaliatory actions by landlords against tenants for complaints, non-payment of rent, or union membership are prohibited and considered discriminatory under the Alabama Fair Housing Law (24-8-4).

If a tenant abandons property, landlords are required to hold the belongings for 14 days, providing notice for collection. After this period, the landlord may dispose of the items as deemed appropriate (35-9A-423). This comprehensive overview ensures landlords in Alabama understand their obligations for disclosures, property maintenance, and tenant relations, adhering to state and potentially applicable local or federal laws.

Alabama Property Maintenance and Repair Regulations

In Alabama, landlords have a clear obligation to ensure their properties remain safe and in proper working order. This duty encompasses the maintenance of common areas and the functionality of essential services and appliances, including electrical, plumbing, HVAC systems, and elevators (35-9A-204). While state law remains silent on specific repair timelines, local or federal regulations may fill this gap.

Tenants, on their part, must keep their living spaces clean and habitable, responsibly use the property's utilities, and avoid causing damage. They are also tasked with promptly reporting any issues to the landlord (35-9A-301).

Regarding adjustments to rent due to diminished property value or conditions warranting an official inspection for safety or habitability issues, Alabama does not have specific statutes addressing these matters. However, tenants have the right to terminate their lease if the landlord fails to uphold the lease's terms related to property conditions (35-9A-401).

It's important to note that Alabama law prohibits tenants from deducting the cost of repairs from rent payments (35-9A-164), emphasizing the importance of landlord-tenant communication and adherence to the lease agreement for property maintenance and repair issues.

Bottom Line

Understanding and adhering to Alabama's tenant laws is crucial for both landlords and tenants to ensure a fair and lawful rental experience. These regulations aim to protect the rights and responsibilities of both parties, fostering a healthy landlord-tenant relationship. Whether it's handling security deposits, respecting privacy, or maintaining the rental property, these laws provide a framework for resolving issues and promoting harmony in the rental market. It's essential for all involved parties to familiarize themselves with these key points to navigate the rental process successfully and legally in Alabama.