What Is the Maximum Security Deposit in Alabama?
Alabama limits a general security deposit to one month’s periodic rent, with a carve-out for pets, changes to the premises and increased liability risks. Here is how the statute reads and what it leaves open.
What is the maximum security deposit in Alabama?
A landlord “may not demand or receive money as security, in an amount in excess of one month’s periodic rent, except for pets, changes to the premises, or increased liability risks to the landlord or premises, for tenant’s obligations under a rental agreement” (Ala. Code 35-9A-201(a)). In plain terms, a general security deposit cannot be more than one month’s rent. On $1,200 rent the ceiling is $1,200. The Alabama security deposit limit calculator does that comparison for your rent and the amount asked.
What counts as money as security?
The limit is written for money held as security for the tenant’s obligations under a rental agreement, which is the money a landlord may later apply to accrued rent and to damages from the tenant’s noncompliance (201(b)). Section 201 is titled “Security Deposits; Prepaid Rent,” but the text of subsection (a) states the limit only for security. See up-front charges in Alabama for what that means for prepaid and last-month rent.
What is not capped?
The amounts “for pets, changes to the premises, or increased liability risks” are outside the one-month ceiling, and the subsection states no dollar or month limit for them. That is a statement about what the statute does not say, not a promise that any amount is allowed: the act imposes an obligation of good faith and lets a court refuse to enforce an unconscionable provision (sections 35-9A-142 and 35-9A-143). Read Alabama pet deposits and fees.
Does the limit apply to every rental in Alabama?
The act is construed as applying only to the residential landlord and tenant relationship (35-9A-102(c)), and it covers a rental agreement for a dwelling unit located in Alabama wherever the agreement was made (35-9A-121). A business lease is outside it.
Can a city or county set a different cap?
No. Section 35-9A-121 makes the act the exclusive remedy and supersedes county and municipal ordinances on the rights and obligations of residential landlords and tenants, so the limit is the same across the state.
What happens to the deposit afterwards?
The landlord must refund it, or send an itemized list of what it keeps, within 60 days after the tenancy ends and possession is delivered, and owes double the original deposit if it fails to mail a timely refund or accounting (201(b), (c), (f)). Use the Alabama security deposit return deadline calculator to find the date.
Worked examples of the Alabama one-month limit
| Monthly rent | Limit on a general deposit | Deposit asked | Result |
|---|---|---|---|
| $900 | $900 | $1,350 | $450 over the limit |
| $1,200 | $1,200 | $1,200 | Within the limit |
| $1,500 | $1,500 | $2,250 | $750 over the limit |
These are illustrations of the one-month rule, not statements about any lease. If the extra amount is for a pet, a change to the premises or an increased liability risk, subsection (a) treats it separately and states no cap.
What a tenant can do about an excessive deposit
Ask the landlord to state in writing what each amount is for. If a general deposit is above one month’s periodic rent and is not for one of the excepted purposes, the landlord is demanding more than section 201(a) allows. Keep the lease and receipts, pay only what the lease requires, and talk to a licensed Alabama attorney about the options. When you move out, the 60-day return rule and the double-deposit remedy apply to the money held.
A checklist for landlords
Use one month’s periodic rent as the ceiling for the general deposit; document in the lease the purpose of any amount for pets, changes or higher liability risk; keep deposits identifiable; and calendar the 60-day return date from the day the tenancy ends and possession is delivered. The return deadline calculator computes it.
Frequently asked questions
How much can an Alabama landlord charge for a security deposit?
No more than one month’s periodic rent as money for security, except for pets, changes to the premises or increased liability risks.
Is the one-month limit the same everywhere in Alabama?
Yes. Local landlord-tenant ordinances are superseded by the state act.
Does the limit include the first month’s rent?
The text of 35-9A-201(a) limits money as security. It does not describe the first month’s rent as part of the security.
Does the limit apply to commercial leases?
No. The act applies only to the residential landlord and tenant relationship.
What if I think the deposit is too high?
Ask the landlord to put in writing what each amount is for, and consult a licensed Alabama attorney.
Official sources
- Ala. Code 35-9A-201: security deposits; prepaid rent
- Ala. Code 35-9A-102: the act applies only to residential tenancies
- Ala. Code 35-9A-121: the act is exclusive and supersedes local ordinances
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Alabama statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Alabama attorney.