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Selling a house with tenants in Alabama.
Alabama's landlord-tenant law covers showings, notice and deposits when a rented home is sold. Here is how it generally works.
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How it works in Alabama.
Residential rentals in Alabama are governed by the Alabama Uniform Residential Landlord and Tenant Act, found in Title 35, Chapter 9A of the Code of Alabama. Selling a rented home does not by itself end a lease. In most cases the buyer takes the property subject to the existing rental agreement, so it helps to share the lease, rent details and deposit records with interested buyers early.
The act also sets ground rules for showings. Tenants should not unreasonably refuse access for showing the home to buyers, and landlords must give notice and enter only at reasonable times. Talking with your tenant early, being flexible about showing times and putting agreements in writing can make the process smoother for everyone. A landlord-tenant attorney can review your lease terms.
Alabama specifics
What to know in Alabama.
Alabama's landlord-tenant act applies
The Alabama Uniform Residential Landlord and Tenant Act, in Title 35, Chapter 9A of the Code of Alabama, sets most rules for residential leases. Your written lease adds terms on top of the statute, so review both before you list.
Showings require notice
Under Ala. Code § 35-9A-303, a tenant should not unreasonably withhold consent for the landlord to show the home to prospective buyers. Except in emergencies and certain other cases, the landlord must give at least two days' notice and enter only at reasonable times. Notice can be posted on the main entry door.
Landlords may not misuse access
The same section says a landlord must not abuse the right of access or use it to harass the tenant. Frequent or poorly timed showings can strain the relationship, so agreeing on a schedule with your tenant is a good idea.
Written notice of the sale matters
Under Ala. Code § 35-9A-205, a landlord who sells a rented home in a good-faith sale is relieved of liability for events after the tenant receives written notice of the conveyance, unless otherwise agreed. Giving your tenant written notice of the sale is therefore an important step.
Security deposits after a sale
Alabama's deposit rules bind whoever holds the landlord's interest when the tenancy ends, which after a sale is usually the new owner. The selling landlord also remains liable to the tenant for security deposits and prepaid rent. Many sellers transfer deposits to the buyer at closing and document it in writing.
This is general information, not legal or tax advice. Rules can change and every situation is different, so confirm the details for your case with a Alabama attorney or the appropriate office.
Your options
There is more than one path.
List with an agent, occupied or after the lease ends
An agent can market the home to the widest group of buyers and coordinate showings with your tenants. Waiting until the home is vacant opens it to buyers who want to live there, but it may mean a period with no rent. Selling while occupied keeps income coming but can make showings harder.
Offer the tenants a chance to buy
Your tenants already know the home and may want to stay for good. If they can get financing, this can be a smoother sale with less disruption for everyone. In some places tenants have specific rights when a rental is sold, so check local rules either way.
Explore offers from investors and professionals
Some investors look for rentals they can keep operating with the current tenants. Through a platform like Doorbloom, you can describe the property and lease situation, hear from interested professionals, and choose whether to talk to anyone. Compare any offer with what a listing might bring before deciding.
How it works
Three clear steps.
- 1
Tell us about your home
Share the address, condition and your timeline. It takes about a minute, and we only ask what is needed for the next step.
- 2
Review who is interested
Real estate investors and professionals review your home. You see who they are before anyone gets your contact details.
- 3
Choose your next step
Talk to the people you want, compare your options, or decide not to sell. There is no pressure and no obligation.
Questions
Questions from Alabama homeowners.
Does a lease end when a house is sold in Alabama?
Generally, no. A sale does not by itself end a lease, and the buyer usually takes the home subject to the existing rental agreement. Your lease may include specific terms about a sale, so an attorney can review it.
How much notice must an Alabama landlord give to show a rental?
Under the Alabama landlord-tenant act, a landlord generally must give at least two days' notice before entering to show the home and may enter only at reasonable times. A tenant can agree to shorter notice.
What happens to my tenant's security deposit when I sell in Alabama?
Alabama's deposit rules bind the owner holding the landlord's interest when the tenancy ends, and the selling landlord also remains liable for deposits and prepaid rent. Transferring the deposit to the buyer at closing, with written records, helps protect everyone.
Do I have to tell my tenant I sold the house in Alabama?
Giving written notice is important. Alabama law relieves a selling landlord of liability for events after the tenant receives written notice of the sale, unless otherwise agreed. The notice should tell the tenant who the new owner is and where to pay rent.
Is Doorbloom buying my house?
No. Doorbloom is a platform that connects Alabama homeowners with real estate investors and professionals. Any offer comes from them, and nothing is binding until you sign a purchase agreement.
What does it cost?
Creating an account and telling us about your home is free for homeowners.
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