Need a Property Rentals Contract in Alabama? AroundWire Can Help

In Alabama, property rental contracts—covering both residential and commercial properties—are primarily governed by the Alabama Uniform Residential Landlord and Tenant Act (for residential leases) and general contract law (for commercial rentals). Standard contracts typically specify lease duration, rent amount and payment schedule, security deposit terms (with a statutory cap of one month’s rent for residential leases, excluding pet or damage deposits), maintenance responsibilities, and conditions for termination or renewal. Disclosure requirements include lead-based paint hazards for properties built before 1978 and, in some municipalities, local habitability standards. There is no statewide licensing for landlords, but local business licensing may apply, particularly in cities like Birmingham or Montgomery. Insurance obligations often require landlords to maintain property and liability coverage, while tenants are encouraged, but not mandated, to carry renter’s insurance. Common risk factors addressed in contracts include property damage, non-payment, and compliance with local ordinances. Payment terms usually stipulate payment methods, grace periods, and late fees (which must be reasonable and specified in the contract). Dispute resolution in Alabama typically defaults to state court, but some contracts may include mediation or arbitration clauses. Contracting norms favor clear, written agreements; oral leases of over one year are unenforceable under the Statute of Frauds. Local ordinances or zoning rules may further impact property use and contract terms, especially for short-term or multifamily rentals.