Alabama

Security Deposit Amount

Alabama security deposit law limits the amount a landlord can charge for a security deposit to the equivalent of one month’s rent. However, additional amounts can be charged for pets, changes to the rental unit, or increased liability risks.

Options for Holding

Alabama state law does not specify particular requirements for where a landlord must hold a tenant’s security deposit.

Notification Requirements

Alabama law does not require landlords notify tenants about the location of their security deposit.

Payment of Interest Earned

Alabama law does not require landlords to pay interest on security deposits.

Timeline for Returning

The landlord must return the security deposit, along with an itemized list of any deductions, within 60 days after the tenant moves out and terminates the lease.

Claims Process

The itemized list of amounts withheld must be provided to the tenant in writing via First Class Mail to the forwarding address provided by the tenant or, if not provided, to the last known address of the tenant within 60 days after termination of the lease.

If there is a dispute over the amount of the security deposit returned, tenants may file a claim in small claims court to recover the amount they believe is wrongfully withheld but are first encouraged to resolve the dispute directly with their landlord.

Landlords in Alabama may only deduct from the security deposit for:

• Unpaid rent.
• Damages that the landlord has suffered by reason of the tenant's noncompliance with Section 35- 9A-301, which states a tenant shall:
  • Comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety;
  • Keep that part of the premises that the tenant occupies and uses as clean and safe as the condition of the premises permit;
  • Dispose from the dwelling unit all ashes, garbage, rubbish, and other waste in a clean and safe manner;
  • Keep all plumbing fixtures in the dwelling unit or used by the tenant as clear as their condition permits;
  • Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances including elevators in the premises;
  • Not deliberately or negligently destroy, deface, damage, impair, or remove any part of the premises; or knowingly, recklessly, or negligently permit any person to do so; and
  • Conduct himself or herself and require other persons on the premises with the tenant's consent to conduct themselves in a manner that will not disturb the neighbors' peaceful enjoyment of the premises.

If the landlord fails to mail a timely refund or accounting within the 60-day period, the landlord shall pay the tenant double the amount of the tenant's original deposit.

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