The median rent is $1,184. This was the first number a child looked at when considering renting out their parents' home in Montgomery. According to Apartment List data, as of July 2026, the overall median rent in Montgomery is $1,184, which is a 0.9 percent increase from the previous month. One-bedroom apartments are around $1,252, while two-bedrooms are about $1,437. This indicates that while Montgomery's rates are lower than the national average, they have been gradually increasing recently.

If it's a home where your parents lived for a long time, emotions can easily mix in when setting the rent. However, it's important to remember that potential tenants will not even inquire about rent prices that are far from the market rate. It's realistic to use the above figures as a baseline but adjust based on the condition of the home, its location, and the reputation of nearby school districts. It's safest to verify school district information based on the address.

Once you've set the rent, list the property on online rental platforms to find tenants. The more detailed your photos and descriptions are, the more inquiries you will receive, as confirmed by industry trends. You should also clearly state the move-in date and what is included in the rent.

When inquiries come in, it's time to conduct tenant screening. This involves checking credit, verifying income, and reviewing previous rental history, with the basic standard being that income should be about three times the rent. This standard should be applied equally to all applicants. The more sentimental the property, like your parents' home, the more important it is to carefully follow this process to avoid future heartache.

After screening, you will draft a lease agreement. This should document the rent amount, payment due date, security deposit amount and return conditions, repair responsibilities, and the lease term. Specifying who is responsible for utilities and the pet policy will also reduce potential disputes later.

According to Alabama state law, the security deposit cannot exceed one month's rent. You must return the full amount or a statement of deductions within 35 days after the tenant moves out, and if you miss this deadline, the landlord loses the right to deduct. If a tenant fails to pay rent, you must first send a written notice with a 7-business-day deadline, and if they pay the overdue amount within that time, the process stops. If the issue is not resolved after the period, you will need to go through court proceedings, and landlords cannot evict tenants on their own.

When multiple applicants apply, it's best to establish the order of acceptance and screening criteria in advance and apply them equally to everyone. Setting the application fee at a level that reflects actual screening costs is reasonable, and if you allow pets, you can also establish a separate pet deposit. Accepting rent via bank transfer or online payment systems helps keep records, making it easier to verify any late payments later.

Before move-in, it's advisable to conduct a move-in inspection and take photos of the walls, floors, and appliances. If it's a home your parents used, there may be many old facilities, so documenting everything carefully will help reduce disputes over security deposit deductions later. Once you start renting, it's safe to switch to landlord insurance, and it's also good to know that rental income is subject to tax reporting.

When considering lease renewals or rent increases, remember that the notice period to inform tenants varies by week. As the renewal date approaches, double-check the relevant regulations, and it's wise to keep separate records of rent deposit history and communication.

Renting out your parents' home is not just a numbers game, but it's best to handle the process just like any other rental. This is not investment or legal advice, and it's advisable to consult a professional before finalizing any contracts.