Mobile's Rental Property Rules: The Rules That Matter

Every city handles rental property rules a little differently. In Mobile, Alabama, there are 5 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Rent Control

Mobile cannot enact rent control or rent stabilization. Alabama Code section 11-80-11.5, enacted in 2024, expressly bars municipalities from limiting rent or fees a private landlord may charge a tenant for residential property.

Key details: Statute: AL §11-80-11.5. Year enacted: 2024. Local authority: None on rent caps. Doctrine: Dillon's Rule state.

Any local ordinance attempting to set rent ceilings is void on its face; landlords harmed by unenforceable local action may seek declaratory relief in state court.

Mobile is more permissive than most cities when it comes to rent control. That said, there are still limits.

Security Deposit Rules

Alabama caps residential security deposits at one month's rent under the URLTA and requires return within sixty days of move-out with an itemized statement of any deductions, with extra deposits allowed for pets or specific risks.

Key details: Standard cap: One month rent. Return deadline: 60 days. Itemization: Required. Statute: AL §35-9A-201.

Failing to return the deposit or itemize deductions within sixty days exposes landlords to recovery of the wrongfully withheld amount plus attorney fees under Alabama law.

Just Cause Eviction

Mobile does not impose just-cause eviction requirements on private landlords. The Alabama Uniform Residential Landlord and Tenant Act controls and permits no-fault non-renewal of month-to-month tenancies with proper notice.

Key details: Statute: AL §35-9A. Month-to-month notice: 30 days. Just-cause: Not required. Self-help: Prohibited.

Improper eviction without notice or by self-help lockouts and utility shutoffs violates state law and exposes landlords to damages, attorney fees, and tenant restoration.

The rules around just cause eviction in Mobile lean permissive, but that does not mean anything goes.

Source-of-Income Discrimination

Mobile does not prohibit landlord refusal to accept Section 8 housing-choice vouchers or other lawful sources of income. Alabama law does not list source of income as a protected class, and HB 354 of 2017 limited expansion of local protections.

Key details: Local protection: None. Federal classes: Still protected. AL HB 354: 2017 preemption. Voucher refusal: Permitted.

Refusing a voucher purely on its source is lawful in Mobile, but using voucher refusal to mask race, disability, or familial-status discrimination violates federal Fair Housing Act protections.

The rules around source-of-income discrimination in Mobile lean permissive, but that does not mean anything goes.

Rental Registration

Mobile requires a business license for rental property operators, and inspections may be triggered by tenant complaints, code-enforcement sweeps, or transfer of ownership, though there is no comprehensive proactive registration program citywide.

Key details: License type: Rental real estate. Fee basis: Gross receipts. Inspection trigger: Complaint-driven. Citywide registry: None proactive.

Operating without a rental business license can result in back-fee assessments, late penalties, and code-enforcement liens against the property.

The Bottom Line

Compared to many U.S. cities, Mobile gives residents more room on rental property rules. 3 of the 5 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

This guide is based on Mobile's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.