Alabama state has various laws regarding the use of rental applications. If your document is not compliant with AL law, you may get sued by the applicant and face legal consequences.
Application Fee
You can charge as much as you wish as a rental application fee. There are no laws in Alabama providing a set limit, although it is recommended to only charge enough to cover the costs of any background checks. The average AL application fee is between $10 and $25. Any amount charged to the tenant is also non-refundable.
Security Deposit
Landlords cannot charge more than 1 months' rent if they are leasing an unfurnished apartment under Alabama law (Section 35-9A-201). The deposit must then be returned within 60 days of the tenant vacating the property.
Housing Discrimination Law
In Alabama, there is no specific state law relating to housing discrimination. However, the Fair Housing Act (FHA) is in place (42 U.S.C. 3601 et seq.). The FHA states that it is illegal to discriminate based on the following characteristics:
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Race
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Nationality
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Religion
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Sex
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Familial status
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Disability
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Criminal history
As a consequence, you are not allowed to ask for any of these details on an AL Rental Application form, nor to include them in the decision-making process.
Notice of Eligibility
You must disclose the screening criteria used during the application process, as well as anything that could lead to a refusal. To make sure individuals understand this in advance of the application, they must provide a signature of acknowledgment on the application.
Consent Credit Check
The Federal Credit Reporting Act (FCRA) stipulates that potential tenants must agree to any credit checks you require. To show they consent, they must provide written acknowledgment on the application form (15 U.S.C. §§ 1681-1681x).