Arizona Security Deposit Law

Maximum deposit

Landlords may not demand or receive more than one and one-half months' rent in total security, including prepaid rent, though a tenant may voluntarily prepay more rent (A.R.S. § 33-1321(A)). (A.R.S. § 33-1321(A))

1.5 months' rent, counting all security however denominated, including prepaid rent

Return deadline

Within 14 days, excluding weekends and legal holidays, after the tenancy ends and the tenant returns the keys and vacates, mail the tenant an itemized list of deductions plus any refund (A.R.S. § 33-1321(D)). (A.R.S. § 33-1321(D), A.R.S. § 33-1310(3))

Counted in business days: the 14-day clock that runs after move-out skips weekends and holidays.

Itemized statement of deductions

Landlords must send the tenant an itemized list of all deductions together with any amount due, by first-class mail to the tenant's last known address unless the tenant arranges otherwise in writing (A.R.S. § 33-1321(D)). (A.R.S. § 33-1321(D))

Interest on the deposit

Arizona law does not require landlords to pay interest on security deposits (A.R.S. § 33-1321 is silent on interest). (A.R.S. § 33-1321 (silent on interest))

Penalty for wrongful withholding

A landlord who fails to follow the itemization and return rules owes the tenant the money due plus damages of twice the amount wrongfully withheld (A.R.S. § 33-1321(E)). (A.R.S. § 33-1321(E))

Where the deposit is held

Arizona does not require a segregated deposit account and expressly lets landlords use refundable deposits during the tenancy as their property management agreement allows (A.R.S. § 33-1321(G)). (A.R.S. § 33-1321)

All refundable deposits must still be refunded under § 33-1321 at the end of the tenancy; the holder of the landlord's interest at that time is bound (§ 33-1321(G)-(H)).

Receipt or written notice of the deposit

Arizona's deposit statute does not require a written deposit receipt or notice of where the money is held (A.R.S. § 33-1321). (A.R.S. § 33-1321)

Move-in condition checklist

At move-in an Arizona landlord must hand the tenant a signed lease, a move-in form for noting existing damage, and written notice that the tenant may attend the move-out inspection (A.R.S. § 33-1321(C)). (A.R.S. § 33-1321)

On request the landlord must tell the tenant when the move-out inspection will happen; no joint inspection is needed when evicting for a material and irreparable breach with reasonable fear of violence.

Pet deposits

The Arizona Residential Landlord and Tenant Act has no separate pet-deposit cap; any pet deposit counts as 'security' under the 1.5-month limit (A.R.S. §§ 33-1310(15), 33-1321(A)). (A.R.S. § 33-1310(15), A.R.S. § 33-1321)

Nonrefundable fees

Arizona permits nonrefundable fees only if the landlord states their purpose in writing, and any fee or deposit not designated nonrefundable must be refunded (A.R.S. § 33-1321(B)). (A.R.S. § 33-1321)

A reasonable charge for cleaning or redecorating is excluded from the definition of security (§ 33-1310(15)); unlabeled fees fall under the refund and itemization rules of § 33-1321(D).

Small-landlord exemptions

Arizona gives no deposit-rule exemption based on unit count or owner occupancy; the Act excludes only listed arrangements such as hotels, employee housing and institutional residence (A.R.S. § 33-1308). (A.R.S. § 33-1308, A.R.S. § 33-1321)

Deposit alternatives and installments

Arizona has no statute governing deposit-alternative products, surety bonds or installment payment of deposits (A.R.S. § 33-1321). (A.R.S. § 33-1321)