Overview
Alabama's security deposit laws are governed by the Alabama Uniform Residential Landlord and Tenant Act (Ala. Code § 35-9A-201 et seq.). The law limits how much landlords can collect, specifies what deductions are allowed, and sets clear timelines for returning deposits after a tenant moves out.
This guide covers everything landlords and tenants need to know about security deposits in Alabama.
Deposit Limits
Alabama law sets the following security deposit limits:
- Maximum deposit: 1 month's rent
- Pet deposits: Not specifically addressed by statute, but generally included within the one-month limit
- Nonrefundable fees: Alabama law does not explicitly prohibit nonrefundable fees, but any portion labeled as a "security deposit" is subject to the statutory rules
Landlords must hold the security deposit in a separate account at an Alabama financial institution. The landlord must notify the tenant in writing of the name and address of the bank or institution where the deposit is held.
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed through the date of termination
- Cleaning: Costs to restore the unit to the level of cleanliness at the time of move-in
- Damage beyond normal wear and tear: Repairs for tenant-caused damage that exceeds ordinary wear
- Lease restoration: Costs to repair or restore alterations made by the tenant without landlord permission
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs or marks on walls from everyday use
- Small nail holes from hanging pictures or decorations
- Worn carpet from regular foot traffic
- Minor fading of paint from sunlight exposure
Damage beyond normal wear and tear includes:
- Large holes in walls or doors
- Stained, burned, or torn carpet
- Broken windows, fixtures, or appliances
- Damage from pets not authorized under the lease
- Excessive filth requiring professional cleaning
Return Timeline
Alabama has a two-tier timeline for returning security deposits:
- 35 days: If the tenant provides a forwarding address in writing upon or after termination
- 60 days: If the tenant does not provide a forwarding address
The landlord must mail or deliver to the tenant:
- The remaining deposit amount (after any lawful deductions)
- An itemized written statement listing each deduction, the reason for the deduction, and the amount
If the landlord fails to return the deposit or provide the required itemized statement within the applicable deadline, the tenant may recover the full deposit amount plus reasonable attorney's fees.
cite: Ala. Code § 35-9A-201(b)
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit with a reasonable deadline
- File a claim in Small Claims Court (up to $6,000 in Alabama)
- File a civil action in district court for amounts exceeding the small claims limit
A tenant who prevails in court may recover the amount wrongfully withheld, plus reasonable attorney's fees as determined by the court.
Landlords should keep thorough documentation, including move-in and move-out inspection reports, photographs, and receipts for any repairs or cleaning, to support any deductions from the deposit.