Security Deposit Law in Arizona: 4 Things Landlords Should Know

There are two times when security deposits become an issue. When a new tenant is moving in and when your tenant has decided to leave. What are the rules when it comes to security deposit law in Arizona?

  • Tuesday, October 25, 2016

  General   Tips   Arizona   

There are two times when security deposits become an issue. When a new tenant is moving in and when your tenant has decided to leave. What are the rules when it comes to security deposit law in Arizona? Here’s what you should know when working with your tenant.

Let's Talk Dollars

Arizona law gives landlords the ability to charge up to one and one-half times the rent charged as a security deposit. Landlords are not required to deposit the funds at any financial institution or accrue interest.

Non-Refundable Fees

Landlords are allowed to consider a portion of the security deposit to be non-refundable. Written notice must be provided to the tenant providing an explanation of any amounts deemed to be non-refundable. Portions of the deposit not specifically earmarked as non-refundable are assumed to be refundable.

Withholding the Security Deposit

Arizona law provides for specific instances in which a landlord may keep some or all of the tenant’s security deposit, including:

  • Damage to the property in excess of normal wear and tear
  • Unpaid rent
  • Costs associated with breach of the lease

Conditions for Returning the Deposit

Once the lease has been terminated, the landlord has 14 business days to return the tenant’s security deposit. If the tenant has not made other arrangements, the security deposit must be sent via first-class mail to the tenant’s last known address.

If you are not returning the full amount of the security deposit to the tenant, a written itemized list of the deductions must also be included. This itemization should include the reason for each deduction and the amount being withheld.

Be aware, that failure to comply with any applicable security deposit law can result in the tenant being awarded two times the amount of the security deposit in addition to any other court awarded damages.

Security deposits can be a hot button issue for both tenants and landlords. Keeping these rules in mind can help you to avoid trouble.

If you have any questions about security deposit law in the state of Arizona or you would like to learn more about what we have to offer, please feel free to contact us for more information.


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