Alabama doesn’t have a legal limit on security deposits. Landlords are free to charge anything that is reasonable. But they are not liable to charge an amount greater than the amount of one month’s rent. Also, landlords must return the security deposit minus any deductions for damages within 60 days after the end of the lease, and the tenant vacates the rental unit.
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Limit: In Alabama, landlords may collect a tenant security deposit of up to one month’s rent. However, landlords are allowed to charge an additional amount for pets, tenant alterations, or other conditions that may increase their liability. The total tenant deposit amount must be clearly stated in the lease agreement.
Return Deadline: The landlord must return the tenant deposit within 60 days after the lease term ends and the tenant vacates the property. If the landlord fails to return the deposit or provide an itemized list of deductions within this period, they may forfeit the right to withhold any portion of the tenant security deposit.
Acceptable Deductions: Unpaid rent, late fees, and the cost of repairing damage beyond normal wear and tear. Routine cleaning and minor cosmetic issues that occur through normal use cannot be deducted from the tenant deposit.
Where to Deposit: Alabama landlords are not required to place tenant security deposits in an interest-bearing account. However, they must keep the funds separate from personal money to ensure they are available for refund at the end of the tenancy.
