Alabama security deposit law

You may not demand or receive more than one month's periodic rent as security for the tenant's obligations under the lease. The limit does not cover security taken for pets, for changes to the premises, or for increased liability risks to you or the premises.

Ala. Code § 35-9A-201(a)

• At the end of the tenancy, security may be applied to accrued rent and to damage the tenant caused by failing to meet the tenant duties in the Act, all itemized in a written notice. Ala. Code § 35-9A-201(b) Ala. Code § 35-9A-301
• A lease term in which the tenant waives the Act's security deposit requirements is unenforceable. If you knowingly try to enforce a prohibited term, the tenant may recover actual damages plus up to one month's periodic rent and reasonable attorney's fees. Ala. Code § 35-9A-163(a)(1), (b)
• If you sell the property in a good faith sale, you stay liable to the tenant for the security the tenant can recover and for all prepaid rent. Ala. Code § 35-9A-205(a)

Within 60 days after the tenancy ends and the tenant delivers possession, mail the tenant the refund and, if you keep any part of the deposit, an itemized list of the amounts withheld. If you do not mail a timely refund or accounting within the 60 days, you must pay the tenant double the original deposit.

Ala. Code § 35-9A-201(b), (c), (f)

• When moving out, the tenant must give you a valid forwarding address in writing. If the tenant does not, mail the deposit or accounting by first class mail to the tenant's last known address or, if there is none, to the rental property. Ala. Code § 35-9A-201(d)
• Mailing by first class mail to the address the tenant gave in writing, within the 60 days, is sufficient compliance. The forwarding address decides where you mail, not when the 60 days start. Ala. Code § 35-9A-201(b), (e)
• A deposit the tenant does not claim, and any refund check left outstanding, is forfeited by the tenant after 90 days. Ala. Code § 35-9A-201(d)
• Days in the Act are calendar days, but if a period ends on a weekend or official holiday, its last day becomes the next official business day the court is open. Ala. Code § 35-9A-141(3)
• The double-deposit penalty does not stop you or the tenant from recovering other damages, and whoever holds the landlord's interest when the tenancy ends is bound by these rules. Ala. Code § 35-9A-201(g), (h)

The Alabama Uniform Residential Landlord and Tenant Act does not require you to keep deposits in a separate or interest-bearing account and does not require you to pay interest on them.

Ala. Code §§ 35-9A-101 to 35-9A-603

• The Act's deposit section covers the amount limit, what the deposit may be applied to, and the refund; it says nothing about where the money is held. Ala. Code § 35-9A-201

The Act does not require a move-in inspection or a written condition report. At move-out the deposit may be applied to accrued rent and to damage from the tenant's failure to meet the tenant duties, so a dated record of the home's condition at move-in helps you support each deduction.

Ala. Code §§ 35-9A-101 to 35-9A-603 Ala. Code § 35-9A-201(b)

• At the start of the term you must deliver possession in compliance with the lease and your maintenance duties. Ala. Code § 35-9A-203
• The tenant must not deliberately or negligently destroy, deface, damage, impair or remove any part of the premises, or knowingly, recklessly or negligently let anyone else do so. Ala. Code § 35-9A-301(6)