There are families who, while moving to another city for a new job, decided to rent out their home in Birmingham without organizing it first. The initial question was simple: how much should the rent be?

According to Zumper data, as of June 27, 2026, the average rent in Birmingham is $1,150. There hasn't been much change in the past month, and compared to a year ago, it has decreased by about 1 percent. A one-bedroom apartment averages $963, while a two-bedroom is around $1,000. So, should you set your rent according to this average? Not necessarily. The actual market price can often be higher or lower than this average depending on the condition and location of the property, as well as the school district. If it's near a school district that many Korean families prefer, that could be a factor for charging a bit more in rent.

Once you've set the rent, the next question is where to find tenants. The most basic method is to list the property on online rental platforms, and the more photos you upload and the clearer you are about the conditions, the more inquiries you'll receive. It's also good to clarify the move-in date and whether utilities are included in the rent in the advertisement.

When inquiries come in, what should you check next? It's tenant screening. This involves checking credit, income verification, and previous rental history. The basic criteria are to see if the income is around three times the rent and if the credit score is stable. These criteria should be applied equally to all applicants to reduce unnecessary disputes later. Skipping this process and rushing into a contract can often lead to cases of rent delinquency down the line.

If they pass the screening, you will draft a lease agreement. It's important to clearly document the rent amount, payment date, security deposit amount and return conditions, scope of repair responsibilities, and contract duration to minimize disputes later. Including whether pets are allowed and the notice period for landlord visits is also advisable.

So, how much security deposit can you collect? According to the Alabama Uniform Residential Landlord and Tenant Act, the security deposit cannot exceed one month's rent. After the tenant moves out, the full security deposit and deduction details must be returned in writing within 35 days. If this deadline is missed, the landlord loses the right to make deductions. For tenants who do not pay rent, a written notice must be sent within 7 business days, and if the overdue rent is paid within that period, the process is halted. If the issue remains unresolved after the period, a formal procedure must be filed in court, and self-help methods like removing belongings or changing locks are not permitted.

Before the tenant moves in, it's advisable to conduct a move-in inspection and take photos of the walls, floors, and appliances. Keeping this record can significantly reduce disputes over how much of the security deposit will be returned later. From the moment you start renting, you need to switch from regular homeowners insurance to landlord insurance to be covered for incidents like fire or leaks, 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 keep organized records of rent deposit histories and communications with tenants for future reference.

In areas like Birmingham, where rent is relatively low, it's also good to calculate the return on investment. However, this is not investment advice, and since tax and contract matters can vary by state and county, it's recommended to consult with a professional before finalizing any contracts.