Alabama Rental Agreement Forms Explained

Alabama Rental Agreement Form Basics

A rental agreement is a critical document in the landlord-tenant relationship. It typically provides the legal framework within which the parties will interact over the life of the rental arrangement. In many cases, it is referred to as a lease, however a rental agreement can literally be any document that sufficiently demonstrates the intentions of the parties to be bound for some period of time in a landlord-tenant relationship.
In Alabama, it is not uncommon for a rental agreement between the owner of real property and the tenant to be oral or written. Whether written, or oral, however, it will help establish a relationship governed by the Alabama Uniform Residential Landlord and Tenant Act. The Act, defined in Alabama Code § 35-18-1, et seq., will assist the parties in understanding their obligations to each other. Other laws may apply depending on what property is leased (i.e. residential, commercial or agricultural), and consequently understanding the legal effect of your rental agreement can often require the assistance of an attorney.
Although a rental agreement may be for any length of time, the most common scenarios are for the agreement to be periodic (month to month, week to week, etc.,), or for one year. When the rental agreement is for a term of years, the parties will often record the document in the Probate Court records. It is important to be aware, however, that the recording of a rental agreement does not alter the terms of the agreement, or imply additional rights by the parties. It does have the added consequence that the agreement is, in most instances, a public document .
The issue of Property Maintenance is likely to have the most significant effect on any rental relationship. Again, knowing your rights and obligations may require the assistance of an attorney. Generally, a rental agreement will require the landlord to maintain the rental property in a habitable condition. This means that the landlord must typically make all repairs to keep the premises fit for human habitation, or must allow the tenant an opportunity to do so. Often, this issue becomes mixed with the question of who should pay for any maintenance or repair.
Other terms of the rental agreement may be deemed additional duties that the parties have agreed to follow. These include whatever is stated in the rental agreement as well as the duties imposed on each party by the residential landlord and tenant act. These additional duties will include those associated with the Rental Payment, Alterations, Utilities, Pets and in some cases, Subleasing the property to third parties.
In summary, rental agreements in Alabama are key elements of the relationship between landlord and tenant. Because they are often the primary evidence of the parties intent, care should be taken in their preparation. Further, regardless of whether the rental agreement is oral or written, the parties are often bound by the provisions of the residential landlord and tenant act. Finally, as with any contract, if there are any questions about the terms of the agreement or a parties rights and obligations under the contract or the law, they should seek the advice of an attorney.

Requirements for Rental Agreements in Alabama

Depending on the type of rental agreement form, it will need to fulfill various legal requirements and contain certain provisions. We will explore the requirements for rental agreement forms for each type of rental agreement (residential lease agreement, commercial lease agreement, etc.) below.
Residential lease agreement forms: According to the Code of Alabama Section 35-9A-162, prior to renting out a residential property, the landlord must provide the tenant with four different documents: The Code of Alabama Section 35-9A-102 provides that a residential lease agreement can be for any period of time, whether year-to-year, month-to-month or week-to-week. In Alabama, a residential lease agreement does not need to be written down but a tenancy is not enforceable against another party unless it is in writing and signed by the party charged.
Commercial lease agreement forms: While the Code of Alabama does not expressly state what provisions a commercial lease agreement must contain, it does provide that commercial lease agreements have specific rules about termination that will depend on how long the lease agreement lasts. The length of a commercial lease agreement can affect the notice period required to terminate the lease agreement. For example, if a commercial lease agreement lasts less than one year, 7 days’ notice is required with no grace period. If a commercial lease agreement is for one year or longer, 30 days’ notice is required with no grace period. The notice can be given at any time before the end of the lease agreement term and will terminate the commercial lease agreement at the specified date.

Key Elements of an Alabama Rental Agreement

To be enforceable in a court of law, a rental agreement form must contain certain basic elements. The rental agreement generally discusses the parties to the lease and what is being rented (the rental premises), as well as stating the term of the lease in a clear fashion. Are you renting for one year? Something less or greater than one year? Do you want to renew the lease at the end of the specified period? The duration of the lease should be clearly stated in the form.
How much does your tenant (and you) owe each month in rent? How will it be paid? When is it due? These matters are usually addressed in the rental agreement form. Also, the lease should address any utilities—water, gas, electric, cable—to ensure that the applicable party is responsible for them. Keep in mind, however, that in many situations the law may require the landlord to furnish utilities; take this matter up with a knowledgeable property management professional.
The rental agreement form should also spell out in clear language what is expected from the landlord and from the tenant. It’s a good idea to have a clear statement of the purpose of the lease, any restrictions on the use of the premises, and the rights of both landlord and tenant. In most Alabama counties, click here for a list of county courts, the Alabama Residential Landlord and Tenant Act (found at Code of Alabama § 35-9A-1 et. seq.) sets forth provisions governing landlords. This Act provides a wide range of substantive rights to both parties and dictates certain provisions that must be included in rental agreements. Tenants in Alabama may not be evicted in violation of the Act and may withhold the payment of rent under certain circumstances.

Common Pitfalls to Avoid

Common mistakes to avoid: As with any legally binding document, it is important to read the rental agreement form carefully. Don’t just sign it without seeking clarification on anything you don’t understand. Sometimes key facts are glossed over in a lease – like the amount of the security deposit! Additionally, landlords and property managers should be cautious of including terms or conditions that would be considered illegal.
As with any legally binding document, it is important to read the rental agreement form carefully before you sign it. Don’t just sign it without seeking clarification on anything you don’t understand. Or else you could be agreeing to something you didn’t intend to.
Many times the key facts are glossed over in a lease – like the amount of the security deposit, which is often a large sum of money for Alabama renters. And these deposits are only returnable or refundable in the circumstances outlined in the Alabama Rental Agreement Act. So be sure you know what you are agreeing to when you sign that piece of paper.
Additionally , landlords and property managers should be cautious of including terms or conditions that would be considered illegal. For example, an agreement cannot require a tenant to give up his/her rights under the law. Some common clauses that may show up in an illegal lease are "no pets" (even if the pets are support animals), "no registration with government agencies required" (again, even registration is required by tax agencies), "no property maintenance journal entries" (you have a right to keep a record of the condition of the rental property) and "no state or federal assistance" (refusing section 8 would be illegal).
While there are a few other common conditions of a rental agreement that are illegal to prohibit, the examples above are among the most common. A good general rule is that the landlord has the right to receive the value of the lease (i.e., to be paid rent) and the tenant has the right to be provided the actual value of the rent (i.e., a safe place to live). Therefore, if a clause seems unfair or unreasonable, then it should not be included in the document.

Sources for Alabama Rental Agreement Forms

In Alabama, rental agreements are available from a myriad of sources. Local and statewide landlord organizations, as well as websites for national landlord associations and government vendors of forms can provide useful resources. However, it is only the local attorney that can construct a rental agreement form that is truly unique and customized for the particular situation.
Mail Order Form Suppliers
Both local and statewide landlord organizations are a source of rental agreement forms. Many of these supplier provide general residential rental agreement forms that may or may not be acceptable in all areas of Alabama. It is important to remember that the law in Alabama is complex and only a licensed attorney can advise on the use of a rental agreement form that is best for the particular situation. Often a simple change in wording can make the difference in an enforceable rental agreement form and one that a court will not enforce. These local forms are often available at the office of the management or landlord’s association in that area or by telephone request.
The Alabama Landlord’s Association sells their form rental agreement via their website at the price of $125.00 per copy. It is important to note that the document received upon payment is a template in Word format that is designed to be customized by the user to match the specific property for which it is used. For the additional $125.00, the landlord receives the form as well as the assistance of an attorney through the Alabama Landlord’s Association to adapt the rental agreement to the particular property.
Online Suppliers
Online rental agreement forms are available through many websites that specialize in the rental industry. These suppliers provide access to forms on a flat fee or pay-per-use basis. The pricing structure of these sites is different from those of other rental forms suppliers. It is advisable that these generic rental forms be reviewed by an attorney prior to use. While the general language in these rental agreements may apply in Alabama, it is the small variations that the court considers when interpreting rental agreement, and often times a minor change in wording will result in a different interpretation. An attorney can also provide the necessary revisions required for your rental agreement if a rental agreement form is to be used from a site similar to those that come with forms from the various online suppliers.
Government Form Suppliers
The Alabama Department of Housing and Urban Development (HUD) provides guidelines for its own lease agreements under 24 CFR 5.903 (10). The guidance provided by HUD is for its own projects and regulations. Therefore, many of the provisions contained in the HUD forms may be applicable in Alabama but not be suitable for all rental situations. Again, the interpretation of the rental agreement forms in Alabama is dependent upon the wording. Minor changes can result in different interpretations of the meaning of the rental agreement.

Advice for Modifying Rental Agreements

While Alabama law outlines specific provisions that must be included in a rental agreement, many landlords and tenants may have additional elements they wish to include in their rental agreements. Landlords and tenants should ensure that any additional provisions are compliant with Alabama landlord-tenant law.
Landlords who want to add provisions to the rental agreement may do so by adding the language to the form, or by creating a new form. However, by adding a new form to the rental agreement, landlords run the risk of creating a provision that is not compliant and enforceable under Alabama law. Before adding a new provision to a rental agreement, review with an attorney.
Tenants may also want to add provisions to the rental agreement to eliminate any confusion on critical issues. For example, if the rent payment date doesn’t seem clear under the existing rental agreement, a tenant may want to add a provision that clarifies the date rent is due. While it’s important that tenants be aware of their rights when renting property, it is equally important that tenants not assume that longer rentals don’t require review of their rental agreement. Questions often arise when a person has rented the same property for an extended period of time . Tenants should make sure they understand all provisions in their rental agreement, as well as their obligations under it. An attorney can help tenants understand these important provisions and explain the ramifications of not understanding them.
In some cases, a tenant may even want to consult an attorney to create a new rental agreement. Questions may arise about the existing rental agreement, making it prudent to create a new rental agreement that addresses those concerns. Not only is it possible to create new rental agreements for long-term tenants, but it’s also acceptable to modify an existing rental agreement. The modification should be in writing, but it does not need to be an entirely new agreement. If either a tenant or a landlord drafts a new rental agreement or modifies an existing one, they should make sure to sign it and then provide copies of the fully executed rental agreement to all parties.
Often a landlord will want to create a rental agreement that addresses the possibility of nonpayment of rent or damage to property. In these instances, the type of property will affect the decision about whether to draft a completely new rental agreement or modify the existing one with additional provisions.