I'm in Tuscaloosa.
Best way to protect self re student damage is to always require parents as guarantors. You are limited to one month's rent as security deposit under Alabama law, but you can require guarantors to pay a deposit for their own liability, in my opinion. That idea is untested in the courts. Frequent inspections and immediate repairs or cleaning and then immediately charged to tenants will help prevent a complete mess at lease end that exceeds deposit amount to repair.
Legal age in Alabama is 19. If student is under 19, include a clause in guaranty agreement saying guarantor is liable for full term of the lease, even if the student disaffirms the contract upon reaching age 19.
You can require tenants obtain renters insurance with liability coverage in pre-determined amounts. As long as you don't discriminate (such as, only foreign students or only students with disability animals) then it is legal.
Please clarify what you mean by recent restrictions on STR in area? There are some historic districts that limit number of unrelated persons residing on the premises, if that is what you mean.
Eviction is easy and fast, with service via posting lawsuit papers on the door, only 7 days to answer otherwise default judgment. If there is an answer the case gets priority setting on the docket for hearing. If the tenant loses and appeals it must post an appeal bond equal to all past due rent and continue paying rent each month to stay in the premises during the appeal.
Judges here have heard it all and not fooled by sad stories. Claims of landlord not meeting its responsibilities might allow tenant to cancel lease without penalty, but statute says it is not grounds to stay in premises rent free. Cancelling lease for landlord failures requires written notice of default from tenant and 14 calendar days to cure, and the default remains uncured within that time. Of course, it must be a legitimate default.
Unlike Jefferson County (Birmingham area) turnout orders in Tuscaloosa are executed fairly quickly.
Most student leases are signed in October for the coming August.
Automatic renewal clauses are legal and enforceable.
Hope this helps.