Renting or leasing real estate for others, or offering to, for a fee requires a license. Property management companies operate under a licensed company with a qualifying broker.
AL · Researched October 7, 2026
Alabama rules for property managers
Alabama follows the Uniform Residential Landlord and Tenant Act (Ala. Code Title 35, Chapter 9A). Deposits are capped at one month's rent with narrow exceptions, refunds are due within 60 days, and the key termination notices run 7 business days. Managing rentals for others requires a real estate license from the Alabama Real Estate Commission.
Licensing to manage rentals in Alabama
Checked against the official sourceOwners managing their own property or that of a spouse, child, or parent; attorneys acting as attorneys; court-appointed fiduciaries; clerical staff who do not show property; and managers of an apartment building or complex (this does not cover on-site managers of condominiums).
Brokers who hold rents or deposits for others must keep them in a trust or escrow account under Commission rules, separate from company operating funds.
Money
The cap applies to money held as security for the tenant's lease obligations. Any extra amount must be tied to pets, changes to the premises, or increased liability risk to the landlord or premises.
Mail the refund and an itemized list of amounts withheld to the forwarding address the tenant gave in writing, or to the last known address or the unit if none. Missing the 60-day deadline means paying the tenant double the original deposit. Deposits and checks left unclaimed for 90 days are forfeited by the tenant.
The deposit statute does not require interest or a separate bank account. Licensed brokers who hold deposits for owners must follow Alabama Real Estate Commission trust account rules.
Alabama law does not set a late fee limit. Put the fee in the lease and keep it reasonable. The 7 business day nonpayment notice may list late fees owed along with rent.
Disclose the fee before taking it and charge every applicant the same way. Follow federal FCRA rules for adverse action notices when you deny based on a screening report.
Rent cannot change during a fixed term unless the lease allows it. For month-to-month tenants, give at least 30 days' written notice before the rental date, which matches the notice needed to end the tenancy.
Counties and cities may not enact, maintain, or enforce any rule that controls the rent charged for private property.
Notices and eviction
The notice must state the rent and any late fees owed. If the tenant pays in full within 7 business days after receiving it, the lease continues. If both nonpayment and another breach exist, the nonpayment notice rules govern.
A tenant may cure breaches only twice in any 12 months unless the landlord agrees otherwise. Illegal drugs, illegal firearm use, criminal assault on the premises, and a repeat of the same breach within 6 months allow termination on a 7-day notice with no right to cure. Intentional misrepresentation on the application also cannot be cured.
Either side may end a month-to-month tenancy this way. A tenant who willfully holds over can owe up to three months' rent or actual damages, whichever is greater, plus attorney fees.
After the notice period ends, file an eviction in district court, where these cases get scheduling priority. Either side may appeal within 7 days of judgment. A tenant who appeals must pay accruing rent into court or the writ can still issue. Answer deadlines are set by the court summons.
The landlord has no duty to store or protect it after that point. A unit is presumed abandoned if electric service has been off for 7 consecutive days. During a tenant absence of more than 14 days, the landlord may enter as reasonably needed.
Access and condition
Posting a note on the tenant's main door with the time and purpose of entry is valid notice. An advance schedule for repairs or pest control given more than 2 days ahead counts as notice. A tenant's repair request is consent to enter for that work.
Duties include working electrical, plumbing, heating, and supplied air conditioning, trash receptacles, running water, reasonable hot water, and reasonable heat. If a material problem affecting health and safety is not fixed within 14 days after the tenant's written notice, the tenant may end the lease and recover damages. Single-family landlords may shift some duties to the tenant in writing.
Give this in writing at or before move-in and keep it current. If not disclosed, the person who signed the lease for the landlord becomes the landlord's agent for notices and duties. Federal lead paint disclosure applies to housing built before 1978.
Fair housing
The Alabama Fair Housing Law covers race, color, religion, sex, national origin, familial status, and disability. There is no statewide source of income protection.
Recent and upcoming changes
Owners or their agents can ask local law enforcement to remove an unauthorized occupant by sworn affidavit, without an eviction case. It does not apply to tenants, holdover tenants, or immediate family, and knowingly renting out property you have no right to lease is now a crime.
Managing rentals in Alabama?
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Alabama directory
Sources
- Code of Alabama, Title 35 Chapter 9A (ALISON)
- Code of Alabama § 11-80-8.1
- Code of Alabama §§ 34-27-2, 34-27-30
- Alabama Real Estate Commission
- Governor Ivey signs HB 182
- HB 182 (2024 Regular Session) enrolled text, Act 2024-237
Compare with other states: security deposit limit, deposit return deadline, deposit interest and holding rules, late fees, application and screening fees, rent increase notice, rent control, notice for unpaid rent, notice for lease violations, ending a month-to-month, eviction timeline, abandoned property, landlord entry, repairs and habitability, required disclosures, state fair housing protections.