As a landlord, when flexibility is essential, a month-to-month rental agreement can be the ideal solution. In Alabama, this type of agreement allows landlords to rent their property month-to-month, with the lease automatically renewing until either they or the tenant provides proper notice to terminate.
An Alabama month-to-month lease agreement, also known as a tenancy at will, must still meet basic legal requirements. Below you’ll find a complete breakdown of everything you need to know for month-to-month leases in the Heart of Dixie.
Disclosures (2)
Before a tenant moves in, Alabama requires landlords to share certain information so tenants know what to expect and how to communicate formally during the rental. These disclosures set the stage for a fair and transparent tenancy.
- Lead-based paint: Federal law mandates landlords to disclose any known information about lead-based paint and its hazards in all rentals built before 1978.
- Landlord name and address: Alabama law requires landlords to disclose their name and address to tenants, for ease of communication (Ala. Code § 35-9A-202).
Optional Disclosures and Addenda
These optional disclosures, while not legally required by the state, can help reduce tenant disputes and clarify expectations.
Asbestos: Discloses any known asbestos in the unit and provides tips to avoid or limit exposure.
Bed bugs: Informs tenants of any known or suspected bed bug infestations in the unit or in adjacent units.
Late/returned check fee: Discloses fees for late or returned rent checks. Alabama law does not limit what landlords can charge as a late fee. Returned check fees, however, are capped at $30 per check.
Medical marijuana use: Explains the guidelines for the use of medical marijuana in the rental.
Mold disclosure: Informs tenants of any known or suspected mold issues in the unit, as well as options for treatment and removal.
Move-in checklist: Details the condition of the rental at move-in, including any existing damages in the unit.
Non-refundable fees: Outlines any fees that landlords will not refund or return at the end of the agreement.
Shared utilities: Explains how landlords divide utility costs between any units that share a utility meter.
Smoking: Details the smoking policy for the rental, including any designated smoking areas on the property.
Additional Alabama Month-to-Month Lease Laws
In addition to required disclosures, Alabama law sets clear expectations for month-to-month rentals. These rules govern notice, rent changes, and what happens when issues arise during the tenancy.
Notice to Terminate a Month-to-Month Agreement
When it’s time to end the month-to-month tenancy, state law dictates how and when landlords can terminate the agreement. Here’s what you need to know.
Required notice for tenant: Tenants must give landlords 30 days’ written notice (Ala. Code § 35-9A-441).
Required notice for the landlord: Landlords must also give tenants 30 days’ written notice to terminate the agreement (Ala. Code § 35-9A-441).
Laws Governing Rent Increases
Month-to-month leases allow for more flexibility when adjusting rent, but Alabama landlords still need to follow basic legal standards. While the state does not impose rent control or rent stabilization laws, landlords must handle rent increases with proper notice and fairness.
Alabama law does not limit how much a landlord can increase rent in a month-to-month agreement. However, landlords must provide written notice of the increase before it takes effect. Because either party must give at least 30 days’ notice to terminate a month-to-month tenancy, landlords typically provide at least 30 days’ notice before raising rent to align with this requirement.
Lease Violations and Eviction
When problems arise during the tenancy, like unpaid rent or repeated lease violations, Alabama law outlines specific procedures for landlords and tenants to follow.
Missed rent payment: If a tenant misses a rent payment, landlords may issue a 7-day Notice to Pay or Quit at any point after the first missed payment (Ala. Code § 35-9A-421(b)).
Lease violation: Landlords must provide a 7-day Notice to Cure or Quit for other lease violations. If the tenant commits the same lease violation more than once in 12 months, they do not need to give the tenant a second chance to cure the violation before beginning the eviction process (Ala. Code § 35-9A-421(d)).
Lease abandonment: If a tenant moves out unexpectedly and shows no signs of returning, landlords can consider the property abandoned. In this case, they can attempt to re-rent the unit, but they also have the right to attempt to recover lost rent in the meantime (Alabama Uniform Residential Landlord and Tenant Act).
Self-help evictions: Self-help evictions are illegal in Alabama. All evictions must go through the appropriate legal process.
Rent Payment Laws
Clear rent payment rules help keep a month-to-month rental running smoothly. Alabama law outlines how rent should be handled, including expectations around late fees and tenant protections.
Rent control/stabilization: Rent control and stabilization do not exist in Alabama.
Late rent fees: State law does not limit what landlords may charge as a late rent fee; however, the fee must be reasonable, and they must clearly outline it in the lease template.
Grace period: Alabama law does not require landlords to offer a grace period to their tenants.
Tenant’s right to withhold rent: Tenants may not withhold rent for any reason in Alabama (Ala. Code § 35-9A-164).
Pet rent laws: Landlords may charge a pet deposit or a monthly pet rent, as long as the amount is reasonable and they clearly outline it in their lease agreement template.
Security Deposits
Security deposits in Alabama are subject to precise timing and refund rules that protect both parties and help avoid disputes.
Maximum amount: Under state law, landlords can collect a maximum security deposit of one month’s rent, outside of pet rent or other deposits (Ala. Code § 35-9A-201(a)).
Deposit receipt: Landlords do not have to provide their tenants with a receipt for their security deposit payment.
Interest payments: State law does not require landlords to pay interest on security deposits.
Security deposit return: Landlords must return their tenant’s deposit, minus any deductions, within 60 days of the tenant moving out. If the landlord fails to return the deposit within this time and does not inform the tenant that they’re withholding a portion for repairs, the tenant may be entitled to receive twice the deposit amount (Ala. Code § 35-9A-201(b)).
Deductions: Landlords may deduct funds from the security deposit to cover unpaid rent or damages beyond normal wear and tear and must itemize and clearly outline these deductions (Ala. Code § 35-9A-201(b-c)).
Property Access Laws
Landlords may need to enter a rental property from time to time, but tenant privacy still matters. Alabama law sets general expectations for how landlords should handle access to property during a tenancy.
Advance notice: In Alabama, landlords must give at least 2 days’ notice before entering a tenant’s unit. Further, they can only enter at “reasonable” times (Ala. Code § 35-9A-303(c)).
Immediate access: In an emergency, landlords may enter the property without notice.
Harassment: If a landlord repeatedly enters without permission, fails to provide reasonable notice, or misuses their access rights, they may be subject to landlord harassment charges. In this case, the tenant may be able to terminate the lease early (Ala. Code § 35-9A-442(b)).
