If you think it is necessary, you can collect a SEPARATE security deposit from a lease guarantor. By law, you are limited to one month’s deposit from the tenant, but guarantors are not covered by the residential landlord/tenant act. They can agree to be liable for legal fees (which tenants cannot agree to) and they can be required to pay any amount of security deposit IN ADDITION TO the one month you get from your tenant.
Why would you require that? Suppose tenant is not financially strong. Maybe guarantor is, maybe they aren’t. But, you don’t want to chase down the guarantor and sue them and try to collect if the tenant defaults or damages the property. The additional security deposit gives you added protection.
Interested in more legal tools and ideas for Alabama residential tenants? Click “Resources” tab above to see when the 6-hour Landlord Tenant Law or the 3-hour FAQ Landlord Law classes will be in a city near you. Both earn CE credit and also open to public. If you cannot attend in person, both classes can be taken live but over the Internet and are also available by streaming video. There is no CE credit for classes you do not physically attend in person.