Landlord Tools

Alabama Security Deposit Law

What landlords in Alabama need to know about deposit limits, refund deadlines, interest, and penalties for getting it wrong.

Deposit cap

1 month's rent

Refund deadline

35 days

Interest required?

No

No statewide interest requirement.

Separate account?

Not required

Penalty for noncompliance

Willful violation can allow the tenant to recover the deposit plus damages.

Statute: Ala. Code § 35-9A-201

This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above or with a local attorney before relying on it. See all states.