Alabama 2023 Regular Session

Alabama Senate Bill SB242

Introduced
4/25/23  
Refer
4/25/23  
Report Pass
5/3/23  

Caption

Relating to the Uniform and Residential Landlord and Tenant Act; to amend Section 35-9A-201, Code of Alabama 1975, to remove the limit on the amount that a landlord may require a tenant to pay as a security deposit under a residential rental agreement.

Impact

The removal of this limit is expected to have several implications for state law regarding housing and rental practices. Proponents argue that it could provide landlords with greater flexibility to manage their financial risks, particularly in a market where property damage and tenant reliability may vary significantly. However, critics of the bill express concerns that lifting this cap could lead to exploitative practices, where landlords impose exorbitant deposits that may exclude lower-income individuals from accessing rental properties. This raises a critical dialogue about tenant rights and the balance of power in landlord-tenant relationships.

Summary

SB242 aims to amend the existing law under the Uniform and Residential Landlord and Tenant Act by removing the limit on the amount that a landlord can require as a security deposit from tenants. Currently, landlords are prohibited from charging security deposits that exceed one month's rent, a stipulation intended to protect tenants from excessive financial burdens when renting properties. The proposed change signifies a significant shift in rental agreements, allowing landlords the discretion to set higher security deposits based on their assessment of risks associated with leasing a property.

Contention

Discussions surrounding SB242 highlight a contentious debate over fairness in rental agreements. While advocates assert that the change is necessary for fostering better property management and aligning deposit amounts with actual risks, opponents caution that it might disproportionately affect vulnerable populations, including low-income and first-time renters. Legislative hearings and stakeholder testimonials suggest a perceived risk of enhanced financial strain on tenants, warranting careful consideration of the bill's broader social implications.

Companion Bills

No companion bills found.

Previously Filed As

AL SB325

Alabama Youth Residential Facility Abuse Prevention Act; youth residential facilities, requirements to disclose allegations of abuse or neglect, further provided

AL HB217

Relating to gross income; to amend Section 40-18-14, Code of Alabama 1975; to exclude difficulty of care payments from gross income.

AL SB147

Children First Trust Fund, appropriations from for fiscal year ending September 30, 2026, use of allocation pursuant to Section 41-15B-2.2, Code of Alabama 1975 and this act, tobacco settlement revenues deposited in fund within 30 days of receipt.

AL HB183

Children First Trust Fund, appropriations from for fiscal year ending September 30, 2026, use of allocation pursuant to Section 41-15B-2.2, Code of Alabama 1975 and this act, tobacco settlement revenues deposited in fund within 30 days of receipt

AL HB467

Taxation; to amend 40-18-14, Code of Alabama 1975, relating to overtime compensation

AL HB398

Jefferson County, levy of additional residential building permit fee in county and municipalities for Central Alabama Homebuilding Academy authorized

AL HB297

Cash transactions; report certain cash transactions to Alabama Securities Commission required

AL HB230

Real estate transactions; required disclosures; description of brokerage services; terms of compensation; required written brokerage agreements under certain circumstances

AL SB154

Real estate transactions; required disclosures; description of brokerage services; terms of compensation; required written brokerage agreements under certain circumstances

AL HB387

Sales tax on food, limit on local rate reduction and growth requirement removed

Similar Bills

CA AB878

An act to add Section 1941.

CA AB414

Residential tenancies: return of security.

CA AB2609

Tenancy: additional rents and securities: common household pets.

CA AB1248

Hiring of real property: fees and charges.

AZ SB1173

Landlord tenant; late period; notice

DE SB116

An Act To Amend Title 25 Of The Delaware Code Relating To Right Of Redemption.

NV SB436

Revises provisions relating to landlords and tenants. (BDR 10-514)

CA AB1414

Landlord-tenant: internet service provider subscriptions.