A Quick Look at the Alabama Lease Agreement Laws
A lease agreement in Alabama is a legally binding contract between a landlord and tenant that outlines the terms of a rental arrangement. It is important for both parties to be aware of their rights and responsibilities under Alabama’s lease agreement laws, which aim to protect both landlords and tenants throughout the leasing process.
Overall, Alabama’s residential lease and landlord-tenant laws are not as detailed or comprehensive as in some other states. The law does not specifically require a written lease or dictate its essential terms. However, state statutes do cover aspects such as security deposits, property maintenance, and eviction procedures for landlords and tenants.
In Alabama, a lease agreement can either be an oral or written agreement and an oral lease is legally binding as long as the duration of the lease is one year or less. However, for the protection of both the tenant and the landlord, it is always best to have a written lease agreement. Upon reaching the agreement, the lease covers important information about the tenancy, such as the names of the parties and the rental term. Additional terms of the lease can be added as long as those terms do not contradict state laws. Notably, even when a provision is added to the lease or rental agreement that contradicts state law, this does not void the entire lease , but only that specific provision.
Commonly, lease agreements also contain details about financial obligations, such as the amount of rent, when rent is due, and any fees for late payment, returned checks or other situations. Additionally, the lease should specify who is responsible for the upkeep and repair of the property.
Most residential leases in Alabama are month-to-month by default unless otherwise specified. For the most part, leases in Alabama are terminable at the specified expiration date. However, they automatically renew for another month if no action is taken to terminate the agreement by either party. If the lease agreement does not provide a term, either party may terminate the lease with at least 10-days’ advance written notice before the new rental period begins. Furthermore, under Alabama law, lease agreements automatically terminate within 60 days upon the death of a tenant who is the sole lessee or the last adult remaining in a unit.
The lease agreement should address what will happen at the end of the tenancy, such as whether a tenant will be given notice of a failure to pay rent and allowed a brief period to pay outstanding rent before being evicted from the rental unit. Section VIII of the Alabama Uniform Residential Landlord and Tenant Act regulates the rights and duties of landlords and tenants.
Components of a Lease Agreement
Not all states require lease agreements to be in writing. However, Alabama law requires landlords and tenants to form a written lease agreement when the agreement is for more than one year. (Code of Ala. Section 35-9A-4). In another section of the Alabama Code, it states that "no estate or interest in lands or tenements…shall be granted or surrendered unless by Act or operation of law" unless the agreement is in writing. (Code of Ala. Section 35-4-1). For landlords that may not be familiar with this law, let’s look at the requirements of a lease agreement in Alabama.
Parties
There are two parties to a lease agreement: the landlord and the tenant. The landlord is the person renting out the property and the tenant is the person leasing the property from the landlord. A business can be a landlord, as long as the person signing the lease has the authority to sign on behalf of the business.
Property
A lease agreement must include a full description of the property the tenant is renting from the landlord. Terms such as "my house in Mobile" are insufficient. It’s best to refer to the property by its address and to include a legal description of the property.
Length of Term
It’s important to list the time period the lease agreement covers. Writing "seven months" is not good enough. For example, say "from Jan. 1, 2015 to July 31, 2015." Also, make sure to include the time of day that the lease starts and ends. For instance, it’s sufficient to simply say "from 12 a.m." to "12 a.m." on the start and end date.
Amount of Rent
The lease agreement must have the amount the tenant will pay every month as well as when the rent is due. "PT," "bi-weekly," and "next week" are insufficient terms. Instead say, "by the 5th of every month." Just like with the term of the lease agreement, be sure to provide details about when the rent becomes due. Is it due at the beginning of the month or the end of the month? At midnight, or when the bank opens? You will want that money in your hand as early as possible.
Responsibilities and Rights of Tenants
While any Alabama lease agreement may delineate the specific rights, obligations, and responsibilities that apply to a lease agreement, in general, tenants have the following rights and responsibilities:
Rights of Tenants
Safe Living Environment- Alabama law requires landlords to provide tenants with premises that are safe and habitable. This requirement spans living space as well as common areas and utilities.
Privacy- Under Alabama law a landlord must provide at least 24 hours’ notice before entering an apartment, condo, or home. A lease agreement can modify when notice is given as well as the time frame for providing notice (e.g., weekly, monthly, etc.); however, the typical time period is 24 hours. Landlords do not have the right to enter a unit without a tenant’s consent unless they have an emergency or specific legal right to enter even if the tenant refuses to grant permission.
Freedom from Harassment or Retaliation- A landlord cannot harass or retaliate against a tenant who exercises their rights as a tenant. Retaliation can include eviction for valid complaints, unreasonably withholding consent for a lease assignment, or terminating the tenancy in response to notification of a valid complaint or demand.
Habitability- When a tenant rents a unit in Alabama, the landlord must keep the unit habitable. This means that the room must be sufficiently fit for the use intended, in the proper condition for that use, and fit for human habitation.
Termination of the Lease- A tenant has the right to terminate the lease early in some situations, such as military service or due to domestic violence.
Responsibilities of Tenants
Unfortunately, some lease agreements do not mirror existing laws between landlords and tenants. As an example, while Alabama law provides how much notice a landlord must give before entering a unit, some lease agreements require tenants to provide the landlord with a 24-hour notice before the tenant enters the unit. If you think a clause in your lease agreement violates state law, speak with a lawyer to understand your rights and any potential legal recourse.
General tenant responsibilities include the following:
Payment of Rent- A tenant is required to pay their rent on the due date but may be allowed to pay in installments. A lease agreement may require a tenant to pay the entire rent amount at the beginning or the end of the month versus monthly periodic payments. Be sure to check this provision in your lease agreement to avoid eviction procedures.
Obeying Lease Provisions- Tenants must follow the terms of their lease; however, be sure to discuss any concerns with a lawyer to determine whether a term is legal under the law. For instance, many lease agreements ban pets, but the ADA and Fair Housing laws protect certain service animals.
Maintenance- While a landlord in Alabama is required under state law to maintain a livable unit, a tenant has the responsibility to report maintenance issues so the landlord can remedy the situation. A tenant must provide the landlord ample opportunity to repair the problem and, under state law, a landlord typically has seven days to make the repair before the tenant can remedy the situation themselves. Additionally, it’s typically best to notify the landlord in writing as text messages or verbal communication can be misconstrued.
Raising Concerns- A tenant must raise concerns with the landlord in a timely manner; however, if a tenant believes a term in their lease agreement violates state law, have the issue reviewed by an attorney.
Duties of Landlords
Suppose we’re starting to bang out words for the table of contents. We have a "1.0 Introduction" section. We also have a "2.0 Overview of Alabama Lease Law" section, this will include stuff about fair housing, current trends, etc. I really think we should do a "3.0 Obligations of the Landlord Section". We could cover maintenance obligations, security deposits, smoking policies, entry and access, military clause and pets.
Start off with how characteristic un-individualistic lease agreements are. Then go on to say that while the interests of the landlord and tenant are adverse to one another every Alabama residential lease has some similarity among them and has some basic core requirements. These basic core requirements don’t change from lease to lease in our experience. The first is the landlord has to repair and maintain the entire complex system of being a landlord. Those would be the roof, the HVAC system, the plumbing and electrical systems and the appliances if any. Clearly we have some wiggle room there because not every rental home or apartment has a HVAC system.
Landlords must also provide locks on the doors. Since 2008 landlords have to install deadbolts and have peepholes. Also since 2008 every exterior door has to have a newly manufactured door viewer manufactured to allow the tenant to visually ascertain the identity of a person without opening the door. (See the Appendix, we’ll have a word for word recitation here).
Security deposits are covered by Alabama law. Landlords are under an affirmative duty to maintain records of every penny they get passed the front desk. If infants peak out of the ceiling there will be hell to pay if the landlord doesn’t maintain records on wear and tear vs damage. Redecoration, cleaning, and repairs of damages might warrant some withholding but my own personal view is that the more a landlord withholds the bigger the hole they dig for themselves.
Military service members can terminate their leases without paying either a penalty or breaking the lease.
Like it or not virtually all apartment complexes with more than two units have a no pet policy. There are so many caveats as to why this makes sense that they make little sense.
Entry and access to the home is also one of the landlord obligations.
Alabama Security Deposits
In the State of Alabama, there is a provision (Code of Alabama 35-9A-201) which explains what the maximum you can charge as a security deposit and how it should be returned. It reads "the maximum security deposit for the duration of a tenancy shall be an amount equal to one month’s rent. The deposit shall be returned to the tenant within 60 days after termination of the tenancy, provided that there is no damage to the premises beyond normal wear and tear, no rent is due or unpaid, and no other amounts are owed by the tenant to the landlord under the lease. If these amounts are due and owing, the landlord may withhold the amount necessary to reimburse the landlord for such damages, rent or other amounts owed and shall return the balance of the deposit to the tenant."
When you rent out your house the law indicates that you can ask for a security deposit , holding it for your protection. Should the tenant not pay any amount of rent, or cause damages to your property that exceed normal wear and tear (including carpet and drapery cleaning). The law in Alabama assumes that the majority of any repairs necessary will be less than $250, but that the exceptions for carbon monoxide alarms, smoke detectors, and lead-based bond testing may require higher costs. With regard to return of the security deposit, the law also requires that it be returned within 60 days. If the tenant has paid all rents and has not damaged the property faster than "normal wear and tear," you must return the security deposit. However, if you have incurred damages to your real estate from your renters, you should get an itemized repair schedule from your contractor, and keep an account of the repairs and any associated receipts you receive from your contractor or realtor.
Ending a Lease Agreement
Termination of lease agreements in Alabama must be carried out in strict accordance with the terms and conditions stated under each lease contract. Some leases may not have any early termination or notice clauses. However, in the absence of any such clauses, Alabama lease agreements may be terminated by landlords and/or tenants via a "notice to vacate." This generally means that the lease will continue in effect until a specified period of time has elapsed and then the agreement will end.
The state statutes do not require any particular notice period. The time frames are generally established by the landlord and tenant. Most Alabama leases are month-to-month agreements. The lease is subject to an early termination under a 30-day notice clause. In most cases, landlords may not terminate leases unless the tenant is in breach of its obligations. The reasons a lease may be terminated in these instances include failure to pay rent, failure to maintain the unit in good condition, damaging or destroying the premises, use of the home for illegal purposes, or breach of any other obligation under state or local laws or the lease. If it’s the landlord that wishes to terminate the agreement, or other legal action to end the lease early, the landlord must give the tenant written notice. The notice must state the date the landlord wants the lease to end and the reason for termination. The notice must be sent using registered mail. The law does require the statute of limitations be taken into account when it comes to leasebreakers. After three years, a landlord may exercise the right to evict the leasebreaker and recover all rent owed. If the tenant is the party terminating an agreement, they must provide the same written notice as cited above.
Resolving Disputes and Finding Legal Help
Dispute Resolution and Legal Resources for Alabama Lease Agreements
In the unfortunate event that a dispute arises between a landlord and tenant, a number of pathways exist for resolution. The State of Alabama Department of Consumer Affairs provides access to a helpful resource as a mediator to consumers and businesses in rental property disputes. Online mediation is free for all Alabama residents and landlords. In jurisdictions where the Department of Consumer Affairs is not available, the Better Business Bureau or the Legal Services Alabama are options as well . A landlord may also choose to move forward directly to court proceedings through small claims court, which is initiated by filing a Statement of Claim at the local courthouse and should be completed within two months on average.
Even so, the best approach to resolving disputes between landlords and tenants in Alabama or any other state, is to avoid it in the first place. This goal can be accomplished through open and honest communication and expectations between the parties, which hopefully will be codified in a detailed lease or rental agreement.