Arizona

Security Deposit Amount

Landlords in Arizona can require a security deposit up to one and a half times the monthly rent.

Options for Holding

Arizona law does not mandate that security deposits be held in a separate, interest-bearing account. Landlords must, however, manage the deposit in a way that ensures it is available for return at the end of the tenancy.

Notification Requirements

Arizona security deposit law does not require landlords to notify tenants about the bank where the security deposit is held.

Payment of Interest Earned

Arizona law does not require landlords to pay interest on security deposits.

Timeline for Returning

Landlords must return the security deposit, minus any lawful deductions, within 14 business days after the tenant vacates the property and returns possession to the landlord. This includes providing an itemized statement of deductions.

Claims Process

Landlords must provide the tenant with a written, itemized list of deductions from the security deposit. This statement must detail the nature of each deduction and the cost incurred.

Tenants are required to provide a forwarding address in writing to the landlord before moving out. This address is needed to send the security deposit and any notifications related to deductions.

Landlords in Arizona can deduct damages from a security deposit for:

• Unpaid Rent: Deductions can be made for any unpaid rent.
• Damage to Property: Landlords can deduct amounts for damage beyond normal wear and tear. This includes repairs to the property, fixtures, and appliances.
• Cleaning Costs: Reasonable cleaning costs may be deducted if the property is not returned in a clean condition.
• Other Costs: Additional charges related to tenant obligations under the lease agreement, such as repairs due to tenant negligence, may also be deducted.

If a landlord fails to return the security deposit within the 14-day period or does not provide an itemized statement of deductions, the tenant may be entitled to recover the deposit and potentially additional damages through legal action.

Tenants may also be able to recover court costs and attorney’s fees if they prevail in a lawsuit against the landlord for non-compliance.

Transfer of Ownership: When a property changes ownership, the new owner must assume responsibility for the security deposit. The landlord must transfer the deposit and notify the tenant of the new owner’s information.

Eviction: In cases of eviction, the landlord must still follow the legal requirements for returning the security deposit and providing an itemized statement of deductions.