Alabama: Late Rent Fee Limits

What actually governs a late fee in Alabama

Alabama's Uniform Residential Landlord and Tenant Act, Ala. Code
§§ 35-9A-101 through 35-9A-603, contains no numeric residential late-fee cap,
fee-free grace period, accrual rule, or calculation formula. Section
35-9A-161(a) instead permits rental-agreement terms that the chapter or other
law does not prohibit, including rent and other provisions governing the
parties' rights and obligations.

The rental agreement therefore supplies the fee's amount, timing, recurrence,
and calculation base. Section 35-9A-141(13) defines a rental agreement to
include written or oral agreements, so the Act does not impose a separate
signed-writing condition for a late fee.

No numeric cap does not make every agreed fee enforceable. Under
§ 35-9A-143(a), a court that finds a rental-agreement provision was
unconscionable when made may refuse to enforce the agreement, enforce the rest
without that provision, or limit the provision to avoid an unconscionable
result.

What trips people up

The seven-business-day period is not a late-fee grace period. Section
35-9A-421(b) governs a written notice to terminate the lease after rent is
unpaid. The notice may state the rent and late fees owed, and the tenant has at
least seven business days after receiving it to remedy the breach before the
lease terminates. The section does not say a landlord must wait seven business
days before assessing an agreed late fee.

The statute does not supply a default percentage or flat amount. If a
rental agreement mentions a late fee without stating its amount, base, or
recurrence, Chapter 35-9A does not fill in a standard figure.

An oral rental agreement is not automatically outside the Act. Because
§ 35-9A-141(13) includes oral agreements, the absence of a signed lease does
not by itself establish whether a fee was or was not agreed. That depends on
the actual agreement and the facts.

Common questions

What is the largest residential late fee Alabama allows? The statute
states no numeric maximum. The agreed provision remains subject to the court's
unconscionability power under § 35-9A-143.

Can a landlord charge the fee every day? Chapter 35-9A does not prescribe
a one-time or daily structure. Any recurring method must come from the rental
agreement and remain enforceable under applicable law.

Does a nonpayment notice create the late fee? No. Section 35-9A-421(b)
allows the notice to specify late fees already owed; it does not create a fee,
set its amount, or supply a calculation formula.

Statutes and sources

• Ala. Code § 35-9A-141(13) — a rental agreement may be written or oral.

  “Rental agreement” means all agreements, written or oral, and valid rules
  and regulations adopted under Section 35-9A-302 embodying the terms and
  conditions concerning the use and occupancy of a dwelling unit and
  premises.

Official enrolled-act source: https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2011RS/PrintFiles/SB316-Enr.pdf (accessed 2026-07-20)
- Ala. Code § 35-9A-161(a), (c) — lawful agreement terms and rent timing.

A landlord and a tenant may include in a rental agreement terms and
conditions not prohibited by this chapter or other law, including rent,
term of the agreement, and other provisions governing the rights and
obligations of the parties. ... Rent is payable without demand or notice
at the time and place agreed upon by the parties.

Official Alabama Unified Judicial System source: https://macon.alacourt.gov/media/1026/universal-residential-landlord-and-tenant-act.pdf (accessed 2026-07-20)
- Ala. Code § 35-9A-143(a)-(b) — unconscionable agreement provisions.

If the court, as a matter of law, finds ... a rental agreement or any
provision thereof was unconscionable when made, the court may refuse to
enforce the agreement, enforce the remainder of the agreement without the
unconscionable provision, or limit the application of any unconscionable
provision to avoid an unconscionable result.

Official Alabama Unified Judicial System source: https://macon.alacourt.gov/media/1026/universal-residential-landlord-and-tenant-act.pdf (accessed 2026-07-20)
- Ala. Code § 35-9A-421(b) — separate nonpayment-termination cure period.

If rent is unpaid when due, the landlord may deliver a written notice to
terminate the lease to the tenant specifying the amount of rent and any
late fees owed to remedy the breach and that the rental agreement will
terminate upon a date not less than seven business days after receipt of
the notice. If the breach is not remedied within the seven business days,
the rental agreement shall terminate.

Official current code source: https://alison.legislature.state.al.us/code-of-alabama?section=35-9A-421 (accessed 2026-07-20)