Alabama Security Deposit Laws: Caps, Deadlines & Deductions
A solid guide to Alabama security deposit law, including the one-month rent limit, rules for pet deposits, and the strict 60-day deadline for returns.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Navigating the Alabama security deposit law is straightforward if you follow the strict guidelines set by the Alabama Uniform Residential Landlord and Tenant Act (AURLTA), which became effective January 1, 2007. Unlike commercial rentals, residential deposits are tightly controlled under Title 35, Chapter 9A of the Code of Alabama to protect tenants.
Maximum Deposit Limits
Official Law Citation: The rules and regulations outlined on this page are strictly configured under the official Code of Alabama Section 35-9A-201. Landlords must always ensure their lease agreements directly adhere to this state code.
Under Alabama law (s. 35-9A-201), a residential landlord cannot demand or receive a security deposit that exceeds the equivalent of one month's periodic rent.
However, there is an exception for pets and structural modifications. You can legally charge an additional, separate deposit for a pet. You can also charge an additional deposit if the tenant requests alterations to the premises or if the property poses unique liability risks (such as a waterbed).
Returning the Security Deposit
You have exactly 60 days from the termination of the tenancy and the delivery of possession to return the tenant's security deposit. If you fail to mail a timely refund or accounting within this 60-day period (as required by s. 35-9A-201(f)), you must pay the tenant double the amount of the tenant's original deposit.
Upon vacating the premises, the tenant must provide a valid forwarding address in writing. If the tenant fails to provide a valid forwarding address, you must mail the deposit or itemized accounting to the last known address or, if none, to the tenant at the address of the property. Any deposit that remains unclaimed by the tenant for a period of 90 days shall be forfeited (s. 35-9A-201(d)).
Staying Updated on Alabama Property Laws
Keeping up with exactly how these rules evolve is vital to protecting your investment. Alabama regulations and local housing ordinances can shift, meaning what is perfectly legal today might require a new lease addendum tomorrow. Always ensure your rental operations align with the most recent local guidelines and statewide precedents to avoid easily preventable compliance fines and prolonged disputes with renters.
Sources & Official References
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