Free Alabama Rent-to-Own Agreement Template

Last reviewed September 2026

Written by LawLease Editorial

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Alabama Rent-to-Own Agreement

This Rent-to-Own Agreement is built with Alabama as the governing state. These are the Alabama landlord-tenant rules that most often bear on it, with the statute for each.

Alabama rules at a glance

Alabama rules for a Rent-to-Own Agreement
Security deposit limit	1 month’s rent, plus extra security allowed for pets, alterations, or higher-liability activitiesAla. Code §35-9A-201
Deposit return	60 days after the tenancy ends and possession is returned; late = double the depositAla. Code §35-9A-201
Double-deposit penalty	A landlord who misses the 60-day window owes the tenant double the amount of the original deposit — not double the amount withheld (§35-9A-201(f)).
Rent-increase notice	No specific statute; a month-to-month change needs the 30-day periodic noticeAla. Code §35-9A-441
Rent control	Prohibited statewideAla. Code §11-80-8.1
Rent increases	Alabama sets no separate rent-increase notice period. A fixed-term lease can’t be changed mid-term without agreement; for a month-to-month tenancy, an increase should be given at least the 30 days required to end the tenancy (§35-9A-441).

Security deposits in Alabama

Alabama caps the security deposit at one month’s periodic rent (§35-9A-201). Unlike most capped states, the statute expressly lets a landlord collect additional security on top of that ceiling in three situations — so a flat “one month, no exceptions” rule overstates the limit.

Carve-outs above the cap — Extra security may be required for pets, for changes the tenant makes to the premises, and for tenant activities that increase the landlord’s liability risk (§35-9A-201).
What can be deducted — The deposit may be applied to accrued rent and to damages the landlord suffers because the tenant failed to meet the tenant’s statutory maintenance duties (§35-9A-201(b), §35-9A-301).
60-day return — Within 60 days after the tenancy ends and the tenant delivers possession, the landlord must mail the refund, or an itemized list of amounts withheld with any balance, to the tenant’s forwarding address (or last known address if none was given).
Double-deposit penalty — A landlord who misses the 60-day window owes the tenant double the amount of the original deposit — not double the amount withheld (§35-9A-201(f)).
Unclaimed refunds — If a refund mailed to the tenant goes unclaimed for 90 days, it becomes the landlord’s property.

Rent, late fees & rent increases

Alabama has no statute capping late fees or requiring a grace period, so the lease controls. Because courts can refuse to enforce a charge that works as a penalty rather than a reasonable estimate of the landlord’s loss, the fee should be stated in the lease and kept proportionate.

Late fees in the notice — Since the 2018 amendments, a nonpayment notice must state the amount of rent and any late fees owed to cure the breach (§35-9A-421(b)) — so the fee needs to be spelled out in the lease to be collectible this way.
Rent increases — Alabama sets no separate rent-increase notice period. A fixed-term lease can’t be changed mid-term without agreement; for a month-to-month tenancy, an increase should be given at least the 30 days required to end the tenancy (§35-9A-441).
Rent control — Cities and counties are barred from adopting any ordinance that controls the amount of rent on private property (§11-80-8.1), so there’s no statutory cap on the size of an increase.

Alabama Rent-to-Own Agreement FAQs

How much can a landlord charge for a security deposit in Alabama?

No more than one month’s periodic rent. Alabama does allow additional security beyond that cap for pets, for alterations the tenant makes to the premises, and for activities that increase the landlord’s liability risk (Ala. Code §35-9A-201).

How long does a landlord have to return a security deposit in Alabama?

Sixty days after the tenancy ends and the tenant returns possession. The landlord must mail the refund, or an itemized list of deductions with any balance, within that window — missing it makes the landlord liable for double the original deposit (§35-9A-201).

Rent-to-Own Agreement in other states

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