Pass-Through Costs and Rent Increases in Alabama

Navigating unexpected rent increases can be frustrating. In Alabama, renters sometimes encounter higher rent linked to so-called "pass-through costs." Understanding when these increases are allowed — and how state law protects you — can help you plan and respond confidently.

What Are Pass-Through Costs?

Pass-through costs refer to expenses that landlords can transfer directly to tenants. These costs might include dramatic increases in property taxes, insurance, or new utility charges. In some states, limits and rules apply, but Alabama law is generally more permissive, with no statewide rent control or rent stabilization.

How Rent Increases Work in Alabama

Alabama does not have rent control laws. That means landlords can usually raise rent for any reason, at any amount, as long as:

• The proper notice is provided per the lease and state law
• The increase is not in retaliation for you exercising your legal rights
• The increase does not violate federal or local anti-discrimination laws

The relevant law governing residential leases and rent increases in Alabama is the Alabama Uniform Residential Landlord and Tenant Act.^[1]

Notice Requirements for Rent Increases

Unless your rental agreement states otherwise, Alabama law does not require landlords to give a specific advance notice before raising rent. However, most leases include a written notice period—typically 30 days for month-to-month tenancies.

Examples of Pass-Through Costs

• Property tax hikes: If property taxes increase, some landlords may adjust rents to offset this cost, depending on your lease.
• New fees or charges: Landlords might pass along costs like garbage collection if local ordinances change and allow them to do so.
• Insurance increases: Increases in property insurance premiums may sometimes be reflected in new leases or renewals.

What Should Renters Do If Faced With a Pass-Through Cost?

Always review your lease. Alabama law allows for "freedom of contract," so your lease terms are critical. If your lease states that certain costs can be passed on, the landlord may have the right to increase rent or fees with proper notice. If not, you may be able to challenge the increase.

Is There an Official Form for Disputing Rent Increases?

Alabama does not provide a statewide, specific form for disputing rent increases or pass-through charges. However, renters can write a formal letter to their landlord stating their concerns. To end a rental agreement in response to a rent increase, tenants can use a "Notice of Termination for Non-Renewal," which is typically a written notice as required by your lease. There is no official state-issued template, but a sample letter can be found in the Alabama Attorney General's Landlord-Tenant Guide.^[2]

• Name: Tenant Notice of Termination (No Official Form Number)
• Use: Used if you wish to move out rather than accept the new rent increase. Give notice as required by the lease (typically 30 days for month-to-month agreements).
• Where to find: See sample letters in the Attorney General's Landlord-Tenant Guide.

The Alabama Tribunal Handling Landlord-Tenant Disputes

In Alabama, landlord-tenant disputes are typically handled in the county-level District Court. There is no specialized housing court or tribunal. If you need to challenge an unlawful rent increase, withholding of services, or retaliatory action, you may have to file a complaint or lawsuit in your local District Court.

Key Steps If You Disagree With a Pass-Through Cost

• Carefully review your lease agreement for pass-through provisions or rent increase rules.
• Check that the landlord gave proper notice under the lease terms.
• Put your objection or questions in writing and request clarification in writing.
• If your rights are violated, consider contacting legal aid or your local court.
• If you choose to move, give written notice as outlined in the lease or state law.

FAQ: Pass-Through Costs and Rent Increases in Alabama

1. Can a landlord raise rent to cover new costs in Alabama?
   Yes. In Alabama, landlords can raise rent to cover expenses like higher taxes or insurance, as long as your lease allows it and you are given required notice.
2. Is there a limit to rent increases in Alabama?
   No. Alabama has no statewide rent control, so there are no legal limits to the amount or frequency of rent increases.
3. How much notice does my landlord need to give for a rent increase?
   The law does not set a required notice period, but most leases require at least 30 days’ written notice for month-to-month rentals.
4. How can I dispute a rent increase if I believe it is unfair?
   If you believe the increase violates your lease or is retaliatory, you may submit a formal letter to your landlord and if not resolved, consider taking the matter to your local District Court.
5. What if I can't afford the new rent?
   You may choose to give proper written notice and move out. Legal aid organizations can offer support and advice for renters facing affordability concerns.

Conclusion: What Renters in Alabama Should Remember

• There are no rent control laws in Alabama—landlords generally set rent and can pass through increased costs.
• Check your lease and require notice in writing for any increase or new charges.
• If you object, communicate promptly in writing and know where to seek official help.

Understanding your lease and state law is crucial in managing rent increases due to pass-through costs.

Need Help? Resources for Renters

• Alabama Attorney General's Consumer Protection Division – for complaints and guidance
• Alabama District Courts – where to file formal disputes
• Legal Services Alabama – provides free or low-cost legal help for renters
• Alabama Landlord-Tenant Law Guide – government handbook for renters

---

1. Alabama Uniform Residential Landlord and Tenant Act
2. Alabama Attorney General: A Guide to Alabama Landlord-Tenant Law

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations