SB242 Alabama 2023 Session

Summary

Primary Sponsor

Keith KelleySenator

Republican

Session

Regular Session 2023

Title

Relating to the Uniform and Residential Landlord and Tenant Act; to amend Section 35-9A-201, Code of Alabama 1975, to remove the limit on the amount that a landlord may require a tenant to pay as a security deposit under a residential rental agreement.

Summary

SB242 would remove the cap on security deposits for residential rentals, allowing landlords to require any amount (with existing exceptions for pets, changes to premises, and increased liability risks).

What This Bill Does

It eliminates the current limit that security deposits may not exceed one month's rent, subject to the mentioned exceptions. It maintains rules about how deposits can be used and returned, including applying deposits to unpaid rent and damages with itemized notice within 60 days after tenancy ends, and requiring refunds or itemized accounting. It also keeps requirements for forwarding addresses, forfeiture of unclaimed deposits after 90 days, and double payment to tenants if refunds are not timely; the landlord's successors remain bound by the rules.

Who It Affects

• Residential landlords: gain the ability to require security deposits of any amount, subject to exceptions and ongoing refund/deduction rules.
• Residential tenants: may face higher upfront security deposit costs but retain protections for refunds, itemized deductions, and timely accounting.

Key Provisions

• Removes the cap on security deposits for residential rental agreements; exceptions for deposits for pets, changes to the premises, or increased liability risks remain.
• Security deposits may be used to cover accrued rent and damages with an itemized damages statement provided within 60 days after termination.
• If the landlord does not refund the entire deposit, they must provide an itemized withholding list within 60 days; if they fail to refund or account timely, they owe double the original deposit.
• Tenants must provide a valid forwarding address; unclaimed deposits or outstanding checks are forfeited after 90 days.
• The landlord's assignee or successor is bound by these provisions.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.