Alabama Security Deposit Law (2026): Deadlines, Interest & Penalties
Alabama law gives landlords a hard deadline: the security deposit must be returned within 60 days of move-out, per Ala. Code § 35-9A-201. On top of the deposit itself, the landlord is not required to pay interest on the deposit. Landlords who blow the deadline face deposit forfeit + possible damages if not returned in 60 days. Enter your deposit details above to check your numbers.
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Alabama Deposit Rules at a Glance
| Return deadline | 60 days after move-out After lease termination |
|---|---|
| Interest on deposit | Not required |
| Separate account required | No |
| Deposit limit | 1 month's rent |
| Penalty for violations | Deposit forfeit + possible damages if not returned in 60 days |
Alabama Security Deposit FAQ
How long does a landlord have to return a security deposit in Alabama?
In Alabama, a landlord must return the security deposit within 60 days after the tenancy ends, under Ala. Code § 35-9A-201. Note: After lease termination.
Does my landlord owe me interest on my security deposit in Alabama?
No. Alabama law does not require landlords to pay interest on residential security deposits.
What is the penalty if a landlord misses the deposit deadline in Alabama?
Deposit forfeit + possible damages if not returned in 60 days. The governing statute is Ala. Code § 35-9A-201.
Is there a limit on how much a landlord can charge as a security deposit in Alabama?
Yes. In Alabama, the security deposit is limited to 1 month's rent.
Does an Alabama landlord have to keep my deposit in a separate account?
No. Alabama law does not require landlords to hold security deposits in a separate or escrow account.
Are there exceptions to the 60-day deposit deadline in Alabama?
Yes — the deadline can vary: After lease termination. When in doubt, check the statute itself (Ala. Code § 35-9A-201) or ask a local tenant-rights organization.
What can I do if my landlord won't return my deposit in Alabama?
First, send a written demand letter citing Ala. Code § 35-9A-201 — our free generator creates one with your amounts filled in. If the landlord still doesn't pay, you can usually file in small claims court, where the penalty exposure is deposit forfeit + possible damages if not returned in 60 days.