In the United States, including Alabama, a rental agreement is a document used when a person (a tenant or a renter) is leasing space from another individual or entity (usually called an owner or a landlord). This legal form normally states the key conditions of the deal, the amount of rent, and the parties’ details.
Usually, a rental agreement form is a long document that is full of terms and conditions and is often at least 10 pages long.
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Every state in the US has its specific rules and requirements for leasing agreements. In Alabama, laws that regulate this agreement are included in Title 35 of the Code of Alabama. The rights of owners and renters are written in Chapters 9 and 9A.
The rules about security deposits in rental agreements in Alabama are prescribed in Section 35-9A-201 of the state law. They regulate the maximum amount of the deposit and the period within which the owner has to refund the tenant when the contract expires or is terminated.
The owner is obliged to refund the deposit to the tenant within 60 days after the termination of the contract.
The maximum deposit amount in Alabama is the equivalent of the amount of rent for one month. No additional fees (for example, fees for having pets in the leased space) should be added to this amount.
In Alabama, delays in rent payment are not regulated by law. However, it is essential to describe the conditions regarding late payments in the lease agreement. Parties may state arbitrary conditions that match their interests.
Section 35-9A-161 of the Code of Alabama states that a tenant has to cover the rent on the day specified in the contract. Usually, this day is at the beginning of each month.
If the tenant fails to pay in the stated period, the landlord has a right to start the agreement termination process. They should notify the tenant in no less than seven days.
In Alabama, a list of disclosures should accompany a rental deal. The list includes:
According to section 35-9A-202 of local law, every agreement has to contain the details of the property owner (or manager). Section 35-9A-303 obliges the landlord to notify the tenant about a visitation in no less than two days. Finally, a “Lead-Based Paint Disclosure” form should be added if the property was built before 1978.
There are at least seven types of lease agreements in Alabama, which are used in various cases from the beginning to the end of the rental period. They include:
For example, a month-to-month agreement does not have a date of termination, and if one party decides to terminate the agreement, they should notify the other party within 30 days. A commercial rent agreement is related to business operations and property intended for a shop, a restaurant, or any other commercial spot.
Every type of agreement has its features. So, when creating a leasing agreement, ensure that you are using the correct template.