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Deposits

Security deposit law in Alabama

Alabama's cap, return deadline, itemization rule, and wrongful-withholding penalty, with the controlling statute linked.

4 min read

Short answer

Alabama caps a security deposit at one month's rent, and the deposit must be returned within 35 days. Wrongful withholding exposure is wrongfully withheld amount plus damages. The controlling text is Ala. Code § 35-9A-201, verified July 2026; confirm the current statute before acting, since legislatures amend deposit law and cities layer stricter rules on top.

One month's rent. The return rule is 35 days. The controlling text is Ala. Code § 35-9A-201.

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Alabama's deposit ceiling

One month's rent.

The one-month ceiling excludes extra amounts for pets, for changes the tenant makes to the unit, and for activities that raise the landlord's insurance risk, which may be charged on top.

Alabama's return deadline

35 days.

You have 35 days from the end of the tenancy and the tenant's delivery of possession to return the deposit or mail an itemized statement of what you kept. The clock is one of the shorter ones in the Southeast, so schedule the move-out inspection the week the keys come back.

The itemized statement rule

An itemized written statement of deductions is required whenever you keep any part of the deposit. Send it to the tenant's last known or forwarding address within the 35 days.

Account and interest rules

Alabama sets no statutory separate-account or interest requirement. A dedicated deposit account is still the cheapest defense against a commingling argument.

Exposure for wrongful withholding

Wrongfully withheld amount plus damages.

A landlord who keeps deposit money without a proper itemized statement is liable for the amount wrongfully withheld, and a court can add damages and attorney fees where the retention was not in good faith. The itemized statement delivered on time is the whole defense.

Compare Alabama with neighboring states

  • Florida: no statutory limit; return rule: 15 or 30 days.
  • Georgia: two months' rent; return rule: 30 days.
  • Tennessee: no statutory limit; return rule: no fixed statutory deadline.
  • Mississippi: no statutory limit; return rule: 45 days.

Verified against Ala. Code § 35-9A-201 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.

Questions landlords actually ask

Does Alabama cap residential security deposits?
One month's rent. The one-month ceiling excludes extra amounts for pets, for changes the tenant makes to the unit, and for activities that raise the landlord's insurance risk, which may be charged on top.
What is the security deposit return deadline in Alabama?
35 days. You have 35 days from the end of the tenancy and the tenant's delivery of possession to return the deposit or mail an itemized statement of what you kept. The clock is one of the shorter ones in the Southeast, so schedule the move-out inspection the week the keys come back.
What itemization does Alabama require?
An itemized written statement of deductions is required whenever you keep any part of the deposit. Send it to the tenant's last known or forwarding address within the 35 days.
What is the wrongful-withholding exposure in Alabama?
Wrongfully withheld amount plus damages. A landlord who keeps deposit money without a proper itemized statement is liable for the amount wrongfully withheld, and a court can add damages and attorney fees where the retention was not in good faith. The itemized statement delivered on time is the whole defense.