Alabama Security Deposit Law: Deadlines & Penalties

Alabama landlords have 60 days after the tenancy ends and the tenant hands back possession to return the security deposit. A landlord may apply the deposit only to unpaid rent and to damages caused by the tenant's failure to meet their obligations under the lease and state law, and must itemize anything withheld in writing. Deposits are capped at one month's rent, except for extra amounts tied to pets, changes to the premises, or increased liability risks.

If the landlord keeps any part of the deposit, it must provide an itemized list of the amounts withheld within the same 60 days. When you move out, you must give the landlord a valid forwarding address in writing; otherwise the refund goes by first-class mail to your last known address or to the rental itself. A deposit or refund check that goes unclaimed for 90 days is forfeited, so watch your mail and cash any refund check promptly.

If the landlord fails to mail a timely refund or accounting within the 60 days, the statute says the landlord must pay the tenant double the amount of the original deposit. Alabama's deposit statute does not require landlords to pay interest on deposits. Disputes of $6,000 or less go on the small claims docket of district court, where people may appear with or without representation.