Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Alabama, the Alabama Uniform Residential Landlord and Tenant Act regulates security deposits for residential leases. According to Alabama Code § 35-9A-201, a landlord may require a security deposit, but the amount is not specifically capped by state law. However, it is common practice for the deposit to not exceed one month's rent. The landlord is permitted to use the security deposit for cleaning the premises, repairing damages caused by the tenant beyond normal wear and tear, and covering unpaid rent. Upon termination of the lease, Alabama law requires the landlord to return the security deposit within 60 days after the tenant has vacated the premises. The landlord must provide an itemized list of deductions if any portion of the security deposit is withheld. If the landlord fails to comply with these requirements, the tenant may be entitled to recover the deposit plus damages.