Alabama security deposit laws: one month cap and 60 days to return it

How much deposit can I collect in Alabama?

One month of rent is the general limit in section 35-9A-201(a). The exceptions are listed in the section: a deposit for a pet, for changes to the premises, or for increased liability risks may be more. Keep each extra amount separate and label what it is for, because a vague extra charge invites a challenge.

Example a made-up apartment rents for $900 a month. The general deposit cap is $900. A tenant with a dog may also pay a separate pet deposit of $300 for that reason, so the landlord holds $1,200 in total but can show what each part is for.

How do the 60 days work?

The deposit and an itemized list of what is kept are due within 60 days after the tenancy ends and the home is returned (35-9A-201(b) and (c)). Start counting on the day you have possession back, not the day the lease ended on paper, and put the deadline on your calendar the day the tenant leaves.

The tenant gives a forwarding address in writing when leaving. Without one, the landlord mails to the last known address or the property (35-9A-201(d)). A deposit left unclaimed for 90 days is forfeited under the same subsection, so keep proof that you tried to deliver it. Send the refund and the list together, and keep a copy of both with the date.

Example a made-up tenant returns the keys on March 3. Sixty days later is May 2. The landlord mails a $1,200 deposit less $150 for a damaged door, with a list showing the repair, to the forwarding address on May 1. The refund is $1,050.

What goes on the list?

Each deduction, with a short reason and the amount, and the amount you are returning. Back deductions with the move-in condition record, photos and an invoice or estimate. Normal wear is not a deduction; see normal wear and tear versus damage and what an itemized statement includes.

What happens if I am late?

Late refund or accounting costs double the original deposit, according to section 35-9A-201(f). On a $900 deposit that could mean $1,800 owed, which is far more than most deductions are worth. The cheapest protection is a dated list sent early.

Do I need a separate account or to pay interest?

DoorKeeping's Alabama rules file found no section of the Alabama Uniform Residential Landlord and Tenant Act, or in a full-text search of the Code on 2026-10-30, that requires a separate account or interest. Even so, holding deposits apart in your books, per tenant, makes the 60-day return simple. Note also that Alabama's Act sets 2 days' notice before entry (35-9A-303(c)).

How DoorKeeping handles it

Each property in DoorKeeping has its own books with deposits shown per tenant, so you can see what you hold and when the return is due. Leases are e-signed and kept with the unit. The money stays in your own bank, and any step with money waits for your one tap. DoorKeeping gives general information, not legal advice. Laws change and cities can add rules, so check the current law for your state and your property before you act, and talk to a local attorney if a case is contested.

Sources

1. Code of Alabama 35-9A-201, security deposits, read Oct 30, 2026
2. Code of Alabama 35-9A-303, access to the dwelling, read Oct 30, 2026

Questions

What is the maximum security deposit in Alabama?

One month of rent, except deposits for pets, changes to the premises or increased liability risks, which may be more (Ala. Code 35-9A-201(a)).

How long does an Alabama landlord have to return a deposit?

Sixty days after the tenancy ends and the home is returned, with an itemized list.

What is the penalty for returning it late?

Late refund or accounting costs double the original deposit (35-9A-201(f)).

Is an unclaimed deposit forfeited?

A deposit left unclaimed for 90 days is forfeited under 35-9A-201(d).