Arizona security deposit law

You may not demand or receive security, however it is labeled and including prepaid rent, of more than one and one-half months' rent. A tenant may still choose to pay more than one and one-half months' rent in advance.

A.R.S. § 33-1321(A)

• Security means money or property given to assure payment or performance under the lease. A reasonable charge for redecorating or cleaning is not security. A.R.S. § 33-1310(15)
• State the purpose of every nonrefundable fee or deposit in writing. Any fee or deposit not designated as nonrefundable is refundable. A.R.S. § 33-1321(B)
• A lease term the Act lists as prohibited, such as a waiver of the tenant's rights under the Act, is unenforceable, and deliberately using a lease with a term you know is prohibited lets the tenant recover actual damages and up to two months' rent. A.R.S. § 33-1315(A) A.R.S. § 33-1315(B) See Lease terms Arizona prohibits on the Arizona page

Within 14 days, not counting Saturdays, Sundays or legal holidays, after the tenancy ends, the tenant delivers possession and the tenant asks for it, give the tenant an itemized list of all deductions with any amount due. Mail the list and any refund by first class mail to the tenant's last known residence unless the tenant has arranged otherwise in writing.

A.R.S. § 33-1321(D)

• Delivery of possession means returning the keys and vacating the home. A.R.S. § 33-1310(3)
• You may apply the deposit and prepaid rent to unpaid rent, to charges listed in the signed lease or allowed by the Act (subject to your duty to mitigate), and to damage caused by the tenant's failure to meet the tenant's upkeep duties. A.R.S. § 33-1321(D) A.R.S. § 33-1341
• If the tenant does not dispute the list or the amount within 60 days after it is mailed, it becomes final and further tenant claims are waived. A.R.S. § 33-1321(D)
• If you do not comply, the tenant may recover the money due plus damages of twice the amount wrongfully withheld. A.R.S. § 33-1321(E)
• Whoever holds the landlord's interest when the tenancy ends is bound by these rules, and a seller stays liable to the tenant for the deposit. A.R.S. § 33-1321(H) A.R.S. § 33-1325(A)
• When a tenant abandons the home and you retake it under the abandonment procedure, the deposit is forfeited and applied to accrued rent and your reasonable costs. A.R.S. § 33-1370(B) See Abandonment and property left behind on the Arizona page

The Arizona Residential Landlord and Tenant Act does not require interest on deposits or a separate deposit account. During the tenancy you may use refundable deposits as any property management agreement provides, and all refundable deposits must be refunded under the deposit return rules when the tenancy ends. The separate trust account rules for licensed real estate brokers were not read for this page.

A.R.S. § 33-1321(G)

• The Act, read in full, has no deposit interest requirement. A.R.S. title 33, chapter 10

At move-in, give the tenant a signed copy of the lease, a move-in form on which the tenant can list existing damage, and written notice that the tenant may be present at the move-out inspection. If the tenant asks, tell the tenant when the move-out inspection will happen.

A.R.S. § 33-1321(C)

• You need not hold a joint move-out inspection when the tenant is being evicted for a material and irreparable breach and you have reasonable cause to fear violence or intimidation. A.R.S. § 33-1321(C)