Alabama Standard Residential Lease Agreement

A Comprehensive Guide Under the Alabama Uniform Residential Landlord and Tenant Act

Introduction

An Alabama standard residential lease agreement is a legally binding contract between a landlord and tenant for the rental of residential property. This agreement establishes the terms and conditions under which the tenant will occupy the property, including rent amount, lease duration, security deposit requirements, and the rights and responsibilities of both parties. Alabama residential leases are governed by the Alabama Uniform Residential Landlord and Tenant Act (AURLTA), codified in Title 35, Chapter 9A of the Alabama Code. ^[1]

The standard lease arrangement typically lasts for one year and requires the tenant to pay rent at the beginning of each month. Both parties should carefully review and discuss all lease conditions before signing to ensure mutual understanding and agreement.

Legal Framework

Alabama's residential landlord-tenant relationships are primarily governed by the Uniform Residential Landlord and Tenant Act (AURLTA), enacted in 2006 under Act 2006-316. This comprehensive statute establishes the rights, duties, and remedies available to both landlords and tenants. The AURLTA applies to rental agreements for dwelling units located in Alabama and supersedes conflicting common law principles. ^[1]

Required Disclosures

Alabama law requires landlords to make specific disclosures to tenants before or at the commencement of the tenancy:

Lead-Based Paint Disclosure (federal Requirement)

For all residential properties built before 1978, federal law requires landlords to disclose known information about lead-based paint and lead-based paint hazards. Landlords must provide tenants with a federally-approved pamphlet on lead poisoning prevention, disclose any known lead-based paint or hazards, and allow tenants a 10-day opportunity to conduct a lead inspection before becoming obligated under the lease. ^[2]

Owner/manager Identification (state Requirement)

Under Alabama Code Section 35-9A-202, landlords must disclose in writing at or before the commencement of tenancy the name and business address of: (1) the person authorized to manage the premises, and (2) an owner of the premises or a person authorized to act on behalf of the owner for service of process and receiving notices and demands. This information must be kept current and extends to successor landlords, owners, or managers. ^[3]

Security Deposit Laws

Maximum Amount

Under Alabama Code Section 35-9A-201(a), a landlord may not demand or receive a security deposit in excess of one month's periodic rent. However, this limit does not include separate deposits that may be collected for pets, changes to the premises, or increased liability risks to the landlord or premises. ^[4]

Return of Security Deposit

The landlord must return the security deposit within 60 days after termination of the tenancy AND delivery of possession (tenant vacates). The deposit may be applied to accrued rent and damages resulting from the tenant's noncompliance with their maintenance obligations under Section 35-9A-301. ^[4]

Itemized List Requirement

If the landlord does not refund the entire deposit, the landlord must provide the tenant with an itemized list of amounts withheld within the 60-day period. ^[4]

Penalty for Non-Compliance

Double Deposit Penalty: If the landlord fails to mail a timely refund or accounting within the 60-day period, the landlord must pay the tenant double the amount of the original deposit. ^[4]

Forwarding Address and Forfeiture

Upon vacating, the tenant must provide the landlord a valid forwarding address in writing. Any deposit unclaimed by the tenant, as well as any outstanding check, is forfeited after 90 days. ^[4]

Rent Payment Laws

Grace Period

Alabama law provides no statutory grace period for rent payments. Under Section 35-9A-161(c), rent is payable without demand or notice at the time and place agreed upon by the parties. Unless otherwise agreed, rent is payable at the dwelling unit, and periodic rent is payable at the beginning of any term of one month or less (otherwise in equal monthly installments at the beginning of each month). ^[5]

Late Fees

Alabama has no specific statutory limit on late fees for residential leases. Therefore, late fees are governed by the state's general usury laws under Section 8-8-1. The maximum rate of interest is 8% per year for written contracts and 6% per year for verbal agreements. ^[6]

Nsf/bad Check Fee

Under Alabama Code Section 8-8-15, if rent is paid with a dishonored check, the landlord may charge a bad check fee of up to $30, or the actual bank charge for returned items, whichever is greater. ^[7]

Landlord Obligations

Under Alabama Code Section 35-9A-204, landlords have the following maintenance and repair obligations: ^[8]

1. Comply with requirements of applicable building and housing codes materially affecting health and safety

2. Make all repairs necessary to put and keep the premises in a habitable condition

3. Keep all common areas clean and safe

4. Maintain in good working order all electrical, plumbing, sanitary, heating, ventilating, air-conditioning systems, and other facilities/appliances supplied by the landlord

5. Provide appropriate receptacles for garbage removal and arrange for their removal

6. Supply running water, reasonable amounts of hot water, and reasonable heat (unless not required by law or controlled exclusively by tenant)

Tenant Obligations

Under Alabama Code Section 35-9A-301, tenants must: ^[9]

1. Comply with building and housing codes affecting health and safety

2. Keep occupied premises clean and safe as conditions permit

3. Dispose of garbage, rubbish, and waste in a clean and safe manner

4. Keep plumbing fixtures as clear as their condition permits

5. Use electrical, plumbing, sanitary, heating, ventilating, and A/C facilities reasonably

6. Not deliberately or negligently destroy, deface, damage, or remove any part of the premises

7. Conduct themselves (and require guests) in a manner that does not disturb neighbors' peaceful enjoyment

Lease Terms and Tenancy Types

Under Section 35-9A-161, landlords and tenants may agree to any terms not prohibited by law. If the rental agreement does not fix a definite term: ^[5]

Week-to-Week Tenancy: Created when tenant pays weekly rent

Month-to-Month Tenancy: Created in all other cases where no definite term is specified

Effect of Unsigned Lease: Under Section 35-9A-162, if a landlord accepts rent without reservation after receiving a signed agreement from the tenant, the agreement is effective as if signed by the landlord. Similarly, if a tenant takes possession and pays rent, the agreement is effective as if signed by the tenant. However, if such an agreement provides for a term longer than one year, it is effective for only one year. ^[10]

Fair Housing Protections

All residential lease agreements in Alabama are subject to the federal Fair Housing Act (42 U.S.C. Section 3601 et seq.), which prohibits discrimination in housing based on: ^[11]

Race, Color, National Origin, Religion, Sex (including sexual orientation and gender identity), Familial Status, and Disability

Landlords may not refuse to rent, set different terms, or provide different services based on these protected characteristics. Violations can result in significant civil penalties and liability.

How to Create an Alabama Residential Lease Agreement

Step 1: Identify the Parties

Include the full legal names of the landlord (or property management company) and all tenants who will occupy the property. Specify the landlord's address for notices and the property address being leased.

Step 2: Describe the Property

Provide the complete street address, unit number (if applicable), city, county, and zip code. Include a description of any included amenities, parking spaces, storage units, or common areas.

Step 3: Specify Lease Terms

State the lease start date, end date (or indicate month-to-month/week-to-week), and any renewal provisions. Standard residential leases typically run for one year.

Step 4: Set Rent and Payment Terms

Specify the monthly rent amount, due date (typically the 1st of each month), acceptable payment methods, and where/how rent should be paid. Include any late fee provisions (subject to usury limits).

Step 5: Document Security Deposit

State the security deposit amount (maximum one month's rent), any pet deposits or additional deposits, and the conditions under which deductions may be made. Reference the 60-day return requirement.

Step 6: Include Required Disclosures

Attach the lead-based paint disclosure (if applicable) and include the owner/manager identification disclosure with current contact information.

Step 7: Define Rights and Responsibilities

Clearly outline landlord and tenant obligations regarding maintenance, repairs, utilities, and property care. Include policies on guests, pets, smoking, alterations, and subletting.

Step 8: Execute the Agreement

Both parties should sign and date the agreement. Each party should retain a copy. While notarization is not required, it may provide additional legal protection.