Alabama security deposit rules.
The Alabama rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Ala. Code § 35-9A-201 · Not legal advice
How much can be charged
Capped at one month of rent for ordinary residential leases. Pet, undue-risk, or alteration deposits can be charged on top, but each must be itemised in the lease.
When it has to come back
Landlords have 60 days from termination of tenancy and delivery of possession to return the deposit, with an itemised list of any deductions.
Interest
No interest is required on residential security deposits.
Where the money has to sit
No statutory requirement to hold deposits in a segregated trust account.
What catches operators out
- Pet, alteration, and high-risk deposits sit outside the 1× cap but must be separately disclosed.
- Missing the 60-day return or accounting forfeits the landlord’s rights to the deposit and makes them liable for double the original deposit.
What this looks like with Standby in Alabama.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Alabama law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Alabama. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.