Alabama Lease Agreements | Residential & Commercial

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An Alabama lease agreement is a document between a property owner, “landlord”, looking to rent their space to a willing tenant. The landlord is recommended, although not required, to obtain the individual’s credit, background, and employment information before signing any type of real estate contract to ensure that the agreed-upon rental payment will be paid on time.

Rental Application – Should be used by the landlord before authorizing any type of lease agreement with a commercial or residential tenant.

Table of Contents

Agreement Types (6)

Commercial Lease Agreement – Any type of commercial type of property including but not limited to: retail (restaurants, stores, etc.), office, and industrial (warehouse, manufacturing, etc.).

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Month-to-Month Lease Agreement (§ 35-9A-441(b)) – Sets the terms and conditions with no end date. Either party may cancel with at least thirty (30) days’ notice.

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Rent-to-Own Lease Agreement – Grants the option to purchase real estate while renting from the Landlord/Seller.

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Room Rental (Roommate) Agreement – Accept a new tenant into a residence to occupy a room and share the living quarters.

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Standard Lease Agreement – A fixed contract that is usually for a length of one (1) year.

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Sublease Agreement – To allow a tenant currently in a binding lease to be able to re-rent the existing property to another person (sublessee). Landlord’s consent is usually required.

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Required Disclosures (2)

Lead-Based Paint Disclosure – Required for all housing structures built prior to 1978.

Owner/Manager Identification (§ 35-9A-202) – All agreements must state the person in charge of maintaining the premises whether it be the landlord or someone instructed to act on their behalf.

Security Deposits

Maximum (§ 35-9A-201(a)) – The landlord may ask for the maximum amount of the equivalent to one (1) month’s rent. This does not include any other fees for pets, extra liabilities based on the tenant, or any changes requested by the tenant on the premises.

Returning (§ 35-9A-201(b)) – The landlord must return the deposit within sixty (60) days after the termination of the agreement.

When is Rent Due?

Rent is due on the day mentioned in the lease agreement which is usually the 1st of the month (§ 35-9A-161). If rent is not paid the landlord can begin eviction proceedings by administering a 7-day notice to quit.

Maximum Fees

Late Rent – There is no statute that limits the amount a late fee may be if rent is late. Any late fee is recommended to be written in the lease agreement.

Non-Sufficient Funds (NSF Checks) (§ 12-17-224) – $30

Right to Enter (Landlord)

The landlord must present two (2) days’ notice before accessing the property for maintenance, repairs, or showings (§ 35-9A-303).

Laws & Guides

(Video) What are the Alabama Rental Laws?