Back to Questions
housingAL

How do I dispute a security deposit return in Alabama?

Federal & State Law Editorial TeamLast reviewed: 2026-05-17

Alabama's Uniform Residential Landlord and Tenant Act (URLTA), Ala. Code §§ 35-9A-101 et seq., governs deposits at § 35-9A-201.

1. 1-Month Cap

Maximum base security deposit is one month's rent. Additional refundable deposits may be charged for pets, increased liability risk, or alterations (§ 35-9A-201(a)). Non-refundable fees must be expressly designated.

2. 60-Day Return Rule

Within 60 days after termination and demand by the tenant (with forwarding address), the landlord must deliver an itemized written statement of any deductions and refund the balance (§ 35-9A-201(c)).

3. Forfeiture for Non-Compliance

A landlord who fails to comply with the return and itemization requirements forfeits the right to retain any portion of the deposit (§ 35-9A-201(d)).

4. Allowed vs. Prohibited Deductions

Permitted: unpaid rent, damages beyond ordinary wear and tear, accrued utilities. Prohibited: ordinary wear and tear, routine cleaning, repainting after long tenancies.

5. Penalty for Bad Faith Retention

A landlord who in bad faith fails to comply is liable for the wrongfully withheld amount plus reasonable attorney's fees (§ 35-9A-201(e)). No automatic 2x/3x multiplier.

6. Demand & Small Claims

Send a written demand letter by certified mail. File in Alabama district court small claims (up to $6,000) or general civil (up to $20,000). The statute of limitations is 6 years for written contracts (§ 6-2-34).

This is legal information, not legal advice.

When to Talk to a Lawyer
  • Landlord retaliating with bogus deductions after a tenant complaint
  • High-value deposit (luxury Birmingham/Mobile rental) where attorney's fees recovery makes counsel viable
  • Habitability defense claim alongside the deposit dispute
Related Statutes & Laws
  • Ala. Code § 35-9A-201
  • Ala. Code § 35-9A-101
  • Ala. Code § 6-2-34

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.