Alabama law treats a security deposit as your money that the landlord only holds. That single idea drives everything on this page: how much can be asked of you up front, what happens to the cash while you rent, and a hard legal deadline for giving it back once you hand over the keys.
| Max deposit | 1 month's rent No cap if the monthly rent is above $2,000. |
|---|---|
| Return deadline | 35 days after you give up possession 21 days to itemize deductions, then up to 14 more days to refund. |
| Interest on deposit | No statewide rule No statewide interest requirement. Interest aside, the return deadline above is what actually moves your money. |
| Statute | Ala. Code § 35-9A-201 |
In Alabama, the ceiling is 1 month's rent. No cap if the monthly rent is above $2,000. Whatever the cap, the deposit remains your money: the cap limits the request, and the sections below limit what can happen to it afterward.
Alabama landlords have 35 days from when you give up possession — normally the day you return all keys — to either refund the deposit or send the written itemization that state law requires. 21 days to itemize deductions, then up to 14 more days to refund. Mark the date on your calendar the day you move; a deadline that passes without refund or statement is what converts an awkward wait into a legal claim.
No statewide interest requirement. Interest aside, the return deadline above is what actually moves your money.
Like nearly every state, Alabama lets landlords charge for real damage and unpaid costs — but not for normal wear and tear. Faded paint, worn carpet in a walkway, and small nail holes from picture hangers are the landlord's cost of doing business; broken fixtures, uncleaned appliances, and unpaid rent are chargeable. When deductions are taken, Alabama requires them in writing — so photograph the unit at move-out and keep the timestamped set until the money arrives. Every line item can then be checked against how the unit actually looked, which is how inflated deductions get beaten.
Wrongful retention can be pursued in small claims; courts may award the deposit plus damages. The route is almost always the same: a written demand letter citing the deadline and Ala. Code § 35-9A-201, then small claims court in the county where the unit sits. Filings are cheap, lawyers aren't required, and landlords who ignored two letters usually settle the week a court date appears.
Three moves protect a Alabama deposit: (1) compare the deposit you're being asked for against the cap above before you sign; (2) photograph the unit at move-in and again at move-out — documentation settles most disputes before they start (our interactive checklist walks you through it); (3) the day you return keys, write the deadline on your calendar and send your forwarding address in writing. If that date passes in silence, the demand letter template takes about ten minutes, and small claims court is the next stop.
Cap check, your personal deadline date, and the interest your deposit earned — in about twenty seconds.
This page summarizes Ala. Code § 35-9A-201 as last reviewed October 5, 2026. Laws and locally announced rates change — confirm current figures with the Alabama housing authority or attorney general's consumer site before relying on them.