If you are a landlord running your rental business in Alabama, knowing about the property management laws that apply to your properties is critical. These laws could have various implications and effects for the way that you run your business, and you want to be sure that you are being compliant and avoiding any legal issues.

With that in mind, let’s take a look at a few of the most important Alabama landlord tenant laws you should know.

Rent Control is Banned

Some states enforce laws that limit on how much landlords can charge their tenants for rent. These laws are banned in Alabama, meaning that landlords can hypothetically charge any amount they wish for rent.

Even though rent laws in Alabama don’t set a cap on the amount you should charge, you should be aware of the pricing trends in your area to ensure that your prices are viable and competitive. The median price of monthly rent in the state of Alabama is $1,461, while the median rent in Birmingham is $1,100.

There is No Required Grace Period

Alabama does not require that landlords give their tenants a grace period for late rent payments. Grace periods allow tenants to submit their rent payments a few days after the due date without the penalty of late fees. Unlike many states, however, grace periods are not required by Alabama state law. Late fees for missing payments can be collected as soon as the day after the rent collection date.

Late Fees are Not Regulated

Similar to the price of rent, there is no legal limit or guideline as to the amount that landlords can charge for late fees. A standard late fee is generally around 5-10% of the rent cost. If you consider the statewide median monthly rent of around $1,400, a typical late fee might be somewhere between $70 and $140.

Alabama Follows Fair Housing Protections

It is very important to be aware of fair housing protections in your state, especially during the tenant screening process. Like all US states, Alabama follows the federal Fair Housing Act. First enacted in 1968, the act illegalizes any housing discrimination by landlords or real estate agents on the basis of race, color, religion, national origin, gender, familial status, and disability.

In Alabama, landlords are allowed to consider the results of a criminal background check during the tenant screening process. The US Department of Housing and Urban Development (HUD) advises landlords to consider all applicants on a case-by-case basis and not allow the existence of a criminal record to be a deal breaker. Instead, you should consider whether the contents of a criminal record indicate either a threat to safety or an inability to uphold the terms of your lease agreement.

Security Deposit Amounts Are Regulated

While rent and late fees are not limited by state law, the amount that landlords can charge for a security deposit is. According to Alabama state law, deposit amounts are capped at the equivalent of one month’s rent. The law does not outline how the deposit must be held, but it must be returned within 60 days after the end of a tenancy.

Landlords Must Issue a Rent Demand or Lease Violation Notice Before Evicting

If a tenant fails to pay their rent, Alabama eviction laws require you to issue a rent demand notice to the tenant providing them a minimum of seven days to submit their payment before you can file an eviction lawsuit. This seven-day period is different from a grace period, since you can still charge late fees during the notice period.

However, if you choose to give your tenants a grace period, it must not overlap with the seven days required in the rent demand notice. For instance, if you give your tenants a three-day grace period, a tenant should have a minimum of ten days to submit a rent payment before you file for eviction.

For tenants who are violating a lease agreement in other ways, you are required to give them a minimum of seven days to cure or quit, meaning if they rectify the issue within that time period, you cannot file for eviction. However, the law states that if the tenant commits the same violation within a calendar year, the landlord is not required to provide a second cure period. An exception to this rule can only be made in writing by a landlord.

Conclusion

Researching the rental laws in your state might not be the most interesting task but it is an incredibly important part of your job as a landlord. Protecting your business and all of the investments you have made into it by staying out of legal trouble is undoubtedly worth it.