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Highlights of the 2006 Alabama Landlord-Tenant Law

Act 2006-316, the Alabama Residential Landlord Tenant Act, applies to rental agreements entered into or renewed after January 1, 2007.  The law provides new obligations and protections for both landlords and tenants.

The new law requires the landlord to:

  • Ensure that the rental unit complies with all applicable building and housing codes that materially affect health or safety, keep common areas clean and safe, and make all repairs necessary to keep the property in a habitable condition;
  • Maintain in good working order all electrical, plumbing, sanitary, heating, ventilating and air conditioning systems;
  • Provide and maintain appropriate receptacles for garbage removal;
  • Supply running water and hot water and provide a source of heating for the dwelling;
  • Limit security deposits to no more than one month's rent (unless an additional fee is required for pets or provided furnishings) and return those funds or provide an accounting within 35 days of the termination of the rental agreement. If the landlord fails to meet this time requirement, he or she must pay the tenant double the amount of the original deposit;
  • Provide at least two days notice of intent to enter the rental unit except in an emergency.

In addition, the law prohibits the use of certain kinds of provisions in rental agreements.  Effective January 1, 2008, a tenant may recover actual damages up to one month's rent and attorney fees if an executed agreement contains any of the following:

  • Provisions requiring or allowing the tenant to waive the requirements related to habitability or security deposits;
  • Provisions requiring the tenant to pay attorney fees or the costs of collecting rent; or
  • Exculpatory clauses that limit the liability of the landlord.

The new law requires the tenant to:

  • Pay the agreed-upon rent; there are no provisions that allow the tenant to withhold payment of rent to enforce any provisions of the law;
  • Comply with building and housing codes that govern matters of tenant responsibility (for example, automobile abandoned on the lawn);
  • Keep the premises as clean and safe as conditions permit;
  • Dispose of garbage and rubbish in a clean, safe manner;
  • Keep all plumbing fixtures as clear as their conditions permit;
  • Use all electrical, plumbing, sanitary, heating, ventilating and air conditioning systems in a reasonable manner;
  • Refrain from deliberately or negligently destroying or damaging any part of the dwelling and from knowingly, recklessly or negligently permitting any person to do so;
  • Avoid conduct (by the tenant or others on the premises with the tenant's consent) that would disturb the neighbors;
  • Allow reasonable access to the landlord to enter the dwelling to inspect the condition of the dwelling or to make necessary repairs.

If a landlord fails to maintain the dwelling in a habitable condition, the tenant may provide written notice of intent to terminate the rental agreement after 14 days following receipt of the notice.  If the landlord makes the necessary repairs within that time, the rental agreement continues to be enforceable.  If, however, the landlord fails to make the required repairs, the rental agreement terminates at the end of the 14 days, and the landlord must return the security deposit and any prepaid rent.

Either landlords or tenants may recover actual damages and obtain injunctive relief should the other party breach their obligations under the statute.  In addition, prevailing parties may be awarded attorney fees.

The law provides that the landlord's rules or regulations are enforceable only if the rule's purpose is to promote the convenience, safety or welfare of the tenants or to protect the property from abuse.  Such rules can be enforced upon the tenant only if he or she was made aware of the rule at the time of entering into the rental agreement, and if the rule applies to all tenants.  Any substantial new rule is valid only with the tenant's written consent.

The law also prohibits retaliatory action by a landlord.  A landlord is prohibited from increasing rent, decreasing services or threatening eviction because a tenant complains to either the landlord or a governmental agency about the violation of the habitability provisions of the law.  Should the landlord retaliate against the tenant, the tenant may seek legal action and recover an amount of up to three months rent or actual damages (whichever is greater) and reasonable attorney fees.

Prior to the new law, the process for eviction varied from court to court around the state.  One of the goals of landlords in negotiating this statute was to put into place a consistent, streamlined process for all of Alabama.  Under the law, a landlord must provide seven days written notice of an intent to evict for non-payment of rent (14 days written notice is required for an eviction for other reasons).  If the tenant has not complied in the specified time, the landlord may then file with the court an action for eviction.  Upon formal notice of this filing, the tenant has seven days to file an answer to the court. Once the court has ruled, any appeal of the ruling must be filed within seven days.