If you’re raising the rent in the Yellowhammer State, you need to follow the rules in the Alabama Uniform Residential Landlord and Tenant Act. While adjusting your monthly rate is a normal part of managing rent payments, landlords must comply with Alabama rent increase laws. Here’s what you need to know:
Alabama doesn’t have rent control policies. But even though there aren’t statewide limits on how much you can raise the price, you must follow the legal protocols when you do increase rent.
In this guide, we’ll cover notice requirements, tips to avoid retaliation and discrimination, and how a free rent increase letter template from TurboTenant streamlines the process.
Is there a rent increase law limit in Alabama?
Alabama effectively eliminated rent control with the passage of AL Code § 11-80-8.1. This law prohibits municipalities within Alabama from setting rent control laws, thereby enabling landlords to raise rent by any amount.
Here’s what you need to know:
Statewide caps: Unlike other states, such as Oregon (Or. Rev. Stat. § 90.323), Alabama law doesn’t regulate rent increases.
Generally, we consider the market rate when adjusting rent, especially in states like Alabama. The market rate is the average amount tenants typically pay for rent in your area based on the following factors:
- Property size,
- Features, and
- Local demand.
Using your market rate is a great way to stay competitive, keep tenants happy, and reduce vacancies.
Local rent control ordinances: Again, state law prohibits local governments from imposing rent control. So whether you’re in Baldwin, Jefferson, or Shelby, county-level restrictions don’t apply.
Exceptions: Because no regulations limit rent increases and local governments can’t set their own policies, Alabama law exempts all properties from rent increase caps.
Rent Increase Notice Periods
Landlords in Alabama can raise rent after a lease ends, but they must notify tenants in writing. Here’s what the process looks like depending on the type of lease agreement you’re using:
Fixed-Term Lease
You can’t increase rent mid-tenancy unless your lease specifically allows it. If you’re on a fixed-term lease, you must wait until the contract ends and raise the rent at renewal.
Alabama law doesn’t set a specific notice period for increasing rent for a fixed-term lease. However, we recommend giving tenants ample time to decide whether to renew or move out.
Month-to-Month Lease
When it comes to month-to-month agreements, landlords must provide at least 30 days’ written notice before increasing rent (Ala. Code § 35-9A-441).
Keep in Mind: If you’re using a week-to-week agreement, Alabama law requires you to provide 7 days’ written notice before implementing the new rate (Ala. Code § 35-9A-441).
Room Rental Agreements
Whether you’re renting out a single room or an entire home, follow the rules based on your lease agreement’s length.
For example, if you’re using a month-to-month room rental agreement, give tenants 30 days’ written notice (Ala. Code § 35-9A-441).
How to Deliver a Rent Increase Notice in Alabama
While state law requires landlords to notify tenants in writing, it doesn’t specify a particular method of delivery. As a best practice, use the following methods:
- Hand-delivery,
- Certified Mail, or
- Leaving the notice at the tenant’s residence.
Keep in Mind: If you want to send official notices digitally using email or a property management app, we recommend adding it to your lease and having your tenant agree in writing.
In Alabama, the notice period starts immediately upon hand-delivery of the increase letter or 3 days after mailing it (Ala. Code § 35-9A-141).
Understanding Illegal Rent Increase and Retaliation
Even though Alabama doesn’t have rent control laws, landlords can’t raise rent in retaliation against the tenant. In other words, you can’t increase someone’s rent (or edit their lease terms) to punish a tenant in any way.
For example, you can’t get back at tenants for taking the following legally protected actions:
- Bringing up health and safety issues in their unit,
- Reporting the landlord for housing code violations, or
- Joining a tenant association.
All in all, Alabama law strictly prohibits landlords from retaliating by increasing or decreasing a tenant’s rent, or threatening eviction. In these cases, tenants may be able to recover damages or defend themselves in an eviction lawsuit (Ala. Code § 35-9A-501).
Pro Tip: In addition to Alabama rent increase laws, keep the Fair Housing Act (FHA) in mind. Landlords can’t offer unequal rental terms or discriminate against tenants based on the following protected characteristics:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability (Fair Housing Act)
And remember, increasing rent during an active fixed-term lease breaches your agreement. If you don’t have a specific clause allowing mid-tenancy rent increases, you could face legal penalties.
How to Write an Alabama-Compliant Rent Increase Letter
Next, make sure to include the following items in your Alabama rent increase letter:
- Full property address (including unit number, if applicable)
- Tenant names
- Exact dollar amount of the increase
- New total rent amount
- Effective date (considering Alabama’s legal notice period)
- Instructions for tenants to accept or opt out (by terminating the lease)
To streamline the process and maintain professionalism, consider using a free standardized template. When you use a template, you avoid he-said-she-said disputes. TurboTenant’s downloadable PDF Alabama rent increase letter template makes legal compliance quick and easy.
Managing the Rent Increase Process with Tenants
After you send your rent increase letter, tenants have a few options, including:
- Accept: If your tenant agrees to the new rent amount, you can continue with the renewal process. Draft an updated lease agreement that includes the new rent rate, and have your tenant sign it.
- Move out: Tenants who refuse the new price don’t renew, which terminates your agreement. When the lease ends, proceed with your move-out process, including returning the security deposit, conducting a move-out inspection, and re-renting the unit.
- Negotiate: Some tenants may push back on the rent increase. If they’re responsible, trustworthy tenants you’d like to continue renting to, consider compromising. For example, you may offer a phased rent adjustment or a longer lease term that works for everyone.
If your tenant agrees to the price increase, you can charge the new amount on the effective date. Alabama doesn’t mandate grace periods, even when it’s the first month of a new rate.
We hope this guide helps you better understand Alabama rent increase laws — so you can keep your business profitable without risk.
Alabama Rent Increase FAQs
How much can I raise rent in Alabama?
Alabama law doesn’t cap rent increases. As a result, landlords can increase their monthly rent by any amount.
Is there a maximum late fee in Alabama?
No, state law doesn’t cap late fees. This means landlords can charge late fees of any amount within reason.
Can I increase rent if the tenant is on a verbal agreement?
Yes, but you must follow the Alabama rent increase laws based on your tenancy’s length. However, verbal agreements are risky. We recommend using a clear written lease instead.