Alabama HOA and property management laws: A 2025 guide

What is property management?

Property management is the professional oversight of residential, commercial, or mixed-use properties in the state. It often includes services such as collecting rent, maintaining common areas, enforcing HOA rules, managing resident communications, and supporting board members. In Alabama, property management companies like FirstService Residential often specialize in homeowners associations (HOAs), condominiums, luxury high-rises, and master-planned communities.

Professional property managers are often hired by associations or landlords to simplify daily operations, protect the value of the property, and serve as a bridge between residents and the board/owner. These services are regulated by Alabama property management laws, which define what property managers can and cannot do, who must be licensed, and how managers interact with residents and boards.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Alabama property manager requirements

In Alabama, professional property managers and community association managers are typically required to hold a real estate license issued by the Alabama Real Estate Commission (AREC) with some limited exceptions.

To qualify for a license, applicants must:

• Be at least 19 years old
   
• Hold a high school diploma or GED
   
• Complete 60 hours of pre-license education through an AREC-approved provider
   
• Pass the state licensing exam
   
• Be sponsored by a qualifying broker
   
• Complete 15 hours of continuing education every two-year renewal cycle

Onsite apartment managers, or direct employees of the property owner, may be exempt from licensing requirements, but always consult qualified legal counsel for specific advice on licensing and exemptions.
 

Tenant rights and responsibilities

Alabama tenants are entitled to live in safe, well-maintained rental homes. The Alabama Uniform Residential Landlord and Tenant Act outlines specific protections and expectations to help create a positive rental experience for both residents and property owners.

Key rights for tenants in Alabama include:

• Clean, safe, and structurally sound living conditions
   
• Reasonable notice before landlord entry (typically at least two days, except in emergencies)
   
• Timely repairs when issues affect habitability
   
• Protection from discrimination under federal fair housing laws
   
• Return of their security deposit within 60 days, with an itemized list of any deductions
   
• Protection from retaliatory eviction or rent increases for exercising their rights

With those rights come important responsibilities for tenants, including:

• Keeping the unit clean and free of health hazards
   
• Properly using plumbing, electrical, heating, and other systems
   
• Promptly notifying landlords about necessary repairs
   
• Not damaging the property or allowing guests to do so
   
• Following the terms of their lease, including noise and pet policies

If the tenant violates their lease or misses rent payments, the landlord may have the authority to begin the eviction process under Alabama property management laws. However, landlords must follow the proper legal process, including providing written notice and allowing time for the tenant to remedy the issue. It’s important to note that “self-help” evictions — such as changing the locks or shutting off utilities in an attempt to force a tenant to leave without going through formal legal channels — are not allowed under Alabama property management laws. Even when a tenant is behind on rent, landlords must go through the court system to recover possession of the property. Attempting to bypass this process can lead to legal penalties and delay resolution further.
 

Common Alabama HOA laws

HOAs in Alabama operate under a combination of state laws and each community’s own governing documents. Together, these rules shape how associations function and how boards make decisions on behalf of residents.

Here are some of the key Alabama property management laws that impact HOAs:

• Alabama Homeowners’ Association Act: Applies to HOAs formed on or after January 1, 2016, and to older HOAs that choose to opt in. It outlines requirements for formation, access to records, board elections, and the right to place liens for unpaid dues.
   
• Alabama Nonprofit Corporation Law: Since most HOAs are organized as nonprofit corporations, this law governs how they hold meetings, elect boards, and manage finances.
   
• Federal Fair Housing Act: Prohibits housing discrimination based on protected classes such as race, religion, sex, disability, and familial status. HOA boards in Alabama must follow these guidelines when enforcing rules, reviewing requests, or communicating with residents.

Board members are expected to act within the limits of their authority, make decisions in good faith, and uphold their fiduciary responsibilities.
 

Alabama HOA rules and regulations

Many of the rules that shape daily life in an HOA, rental property, condo, or high-rise community are set by the association itself. While Alabama property management laws provide the legal framework, each association's governing documents (including CC&Rs, bylaws, and rules and regulations) outline the specific standards residents are expected to follow.

Common HOA or association rules often cover:

• Architectural guidelines for exterior changes or modifications
   
• Street parking and parking rules
   
• Landscaping
   
• Pet policies
   
• Use of common areas
   
• Quiet hours or noise restrictions
   
• Maintenance responsibilities for both homeowners and the association

Boards may have the authority to enforce these rules, but they must do so in a way that’s fair, consistent, and in line with Alabama property management laws. That typically means giving homeowners written notice of a violation and an opportunity to respond before taking further action, such as issuing fines. To keep things running smoothly and help avoid common pitfalls, many associations choose to work with a professional property management company like FirstService Residential.
 

How FirstService Residential can help

For nearly 30 years, FirstService Residential has helped board members and building owners in Alabama simplify operations, support legal compliance, and improve the resident experience.

Boards and owners in Alabama who partner with FirstService Residential can benefit from:

• A full suite of exclusive banking and insurance programs through our affiliate, FirstService Financial
   
• Instant access to critical documents and communication with their management team through our proprietary platform, FirstService Residential Connect™
   
• Legal and regulatory guidance through our network of experienced Alabama-based partners
   
• Our 24/7 Customer Care team for round-the-clock multilingual resident support

Need help navigating Alabama property management laws or streamlining compliance with new regulations? Contact FirstService Residential today to learn more.