Alabama Security Deposit Law: A 2026 Landlord's Guide
How much can you charge in Alabama?
1 month's rent. Pet deposits and increased-risk surcharges may be charged on top of the base cap.
Returning the deposit: the 60 days deadline
After the tenancy ends, Alabama gives you 60 days to return the deposit. Itemized statement required for any deductions. Blowing the deadline is the single most common way landlords lose deposit disputes — courts read these statutes strictly, and in many states a late or missing itemization forfeits your right to keep anything.
What you can deduct
- Unpaid rent and other amounts the lease authorizes
- Damage beyond normal wear and tear — holes in walls, broken fixtures, pet damage
- Never normal wear and tear — faded paint, carpet worn by ordinary use, minor scuffs
The dispute is almost never about the rule — it's about the evidence. Date-stamped move-in and move-out photos plus an itemized statement with receipts is what wins in small-claims court.
Interest and holding requirements
Alabama has no general statewide requirement to pay interest on residential security deposits (local ordinances can differ — check your city). Some states in this position still regulate where deposits are held; see Ala. Code § 35-9A-201 for any account or disclosure rules that apply to you.
Track every deposit — and settle it correctly when the tenant leaves
LandlordPro tracks every deposit you hold, carries it across lease renewals, walks you through the return-vs-keep settlement with an itemized record, and reminds you of Alabama's deadline. Free to start — up to 4 units.
Start tracking deposits free →Frequently asked questions
How much can a landlord charge for a security deposit in Alabama?
1 month's rent is the statutory maximum. See Ala. Code § 35-9A-201.
How long does a Alabama landlord have to return a security deposit?
60 days after the tenancy ends, generally with an itemized statement of any deductions. Missing the deadline can forfeit your right to deduct — and in many states triggers statutory damages.
What can a landlord deduct from a deposit in Alabama?
Typically unpaid rent, damage beyond normal wear and tear, and other charges the lease authorizes. Normal wear and tear — faded paint, worn carpet from ordinary use — is never deductible. Documentation (move-in/move-out photos and an itemized list) is what wins disputes.
Handling Alabama deposits with LandlordPro
LandlordPro keeps a ledger of every deposit you hold — who paid it, which lease it secures, and what happened to it. When a tenancy ends, the settlement workflow records what you returned and what you kept (with reasons), generates a tenant-facing settlement statement, and books any kept portion into your income reports correctly. Combined with the Alabama eviction guide and move-in/move-out inspections with photos, you'll have the paper trail that deposit statutes reward.
LandlordPro is a software tool, not a law firm. This page summarizes statutes as of June 2026 for general information; amounts, deadlines, and requirements change. Verify Ala. Code § 35-9A-201 or consult a licensed attorney in Alabama before acting.