Alabama
An Alabama standard lease agreement is a fixed-term arrangement between a landlord and tenant renting residential property, typically for one (1) year. This legal contract must include essential details such as the monthly rent amount, the responsibilities of the landlord, and any required disclosures.
Rental Application
Landlords are advised to verify a tenant’s credit profile before entering into a legally binding lease. This verification process is facilitated through a rental application, which allows landlords to obtain consent to run a credit and background report.
Required Disclosures
Alabama landlords must include specific disclosures in lease agreements:
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Lead-Based Paint Disclosure: This is mandatory for all housing structures built before 1978. Landlords are required to fill out and attach a lead-based paint disclosure form to the lease agreement and provide an Environmental Protection Agency (EPA)-approved pamphlet detailing the dangers of lead-based paint.
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Owner/Manager Identification: All agreements must state the name and address of the individual responsible for maintaining the premises, whether it is the landlord or an authorized agent.
Security Deposit Laws
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Maximum Amount: Landlords can request a security deposit of up to one (1) month’s rent. Additional deposits, such as those for pets or increased liability risks, may also be required.
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Returning: A landlord must return the security deposit within 60 days after the lease termination and delivery of possession (when the tenant vacates the property). If any portion of the deposit is withheld, the landlord must provide an itemized list of the amounts withheld.
Rent Payment Laws
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Grace Period: There is no grace period for rent payments. Rent must be paid on time, as specified in the lease agreement.
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Maximum Late Fee: Alabama law does not impose a statutory limit on late fees. Therefore, landlords can charge any amount they choose, subject to the state's maximum interest rate of 8% per year (6% for verbal agreements).
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NSF Fee: If rent is paid with a dishonored check, landlords can charge a fee of $30.
Additional Lease Agreement Information
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Lease Duration: Leases can be of any length as long as the term is specific and agreed upon in writing. Oral leases cannot exceed one year.
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Notarization: Lease agreements do not need to be notarized in Alabama to be valid.
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Automatic Renewal: Leases can automatically renew unless either party takes action to terminate the agreement.
Consequences of Not Including Mandatory Disclosures
Failure to provide required disclosures can lead to legal consequences or monetary penalties, including fines for not disclosing lead-based paint hazards. Additionally, many lease provisions may be unenforceable without legally required disclosures.
FAQs
In Alabama, lease agreements must include the landlord’s name and address, and a lead-based paint disclosure for properties built before 1978. Additionally, landlords must provide an EPA pamphlet about lead hazards and any relevant records regarding lead paint in the unit.
In Alabama, landlords can charge a maximum security deposit of one month’s rent. This does not include additional deposits for pets or other specific risks associated with the tenant.
Landlords in Alabama must return a tenant’s security deposit within 60 days after the lease termination and the tenant vacating the property. If any deductions are made, an itemized list must be provided.
No, Alabama law does not provide a grace period for rent payments. Rent must be paid on time as specified in the lease agreement without any demand or notice from the landlord.
Yes, leases in Alabama can automatically renew after the initial term ends, typically transitioning to a month-to-month agreement unless otherwise specified in the lease.
If a tenant pays rent with a dishonored check, the landlord can charge a fee of $30 for the returned check. This fee is in addition to any late fees that may apply.
No, lease agreements in Alabama do not need to be notarized to be valid. A written agreement is sufficient, especially for leases longer than one year.
Failing to include mandatory disclosures in an Alabama lease can lead to legal consequences, including potential fines and the unenforceability of certain lease provisions. This is particularly critical for disclosures related to lead-based paint hazards.