_1.png)
A tenant's security deposit offers Arizona tenants and Arizona landlords important protections. These protections can include security deposit deductions due to:
Damage caused by pets. In Arizona, a landlord can agree to allow a tenant to have a pet. In case a pet may cause damage or destruction to the property, a security deposit can cover repairs. With the exception of service animals, if a landlord agrees to allow pets the tenant will often pay an additional security deposit or extra security deposit deductions.
Excessive damages beyond normal wear and tear. A security deposit can help cover excessive damages that are not caused by normal wear and tear. Arizona landlords are responsible for fixing normal wear and tear, or damage caused by daily living to the rental property.
While Arizona law does not have a formal definition, normal wear and tear damage may normally include things in the rental unit like a sliding door that has come off its track, small holes made by thumbtacks, and minor paint chips.
Water damage, large holes in the wall of the rental unit and heavy stains on the carpet are examples of excessive damage.Cover unpaid rent. When a landlord incurs losses after a tenant fails to pay rent on a rental unit, the renter's security deposit can be used to recover the unpaid rent amount. Unpaid rent can be a large issue, but it can be handled properly. To begin, usually a deposit can be twice the amount of the monthly rent.
As well, though an Arizona landlord is not obligated to do so, the landlord can agree to apply the security deposit to the tenant’s final rent payment when the rental agreement is set to expire or when they choose to evict the tenant.Extreme cleaning costs. Just as the Arizona landlord has obligations to provide a safe and habitable dwelling, Arizona tenant obligations include the responsibility to maintain a safe and clean premise. For instance, a tenant is responsible for the disposal of their garbage and should not allow garbage to pile up in their rental property. Tenant obligations within a rental agreement extend to the entire home's cleanliness.
As well, when a tenant moves out they should leave the property in the same condition as when they moved in. If a landlord fails to inspect the property, a tenant cannot be held liable for damage done to the rental unit.
Unfortunately, there are times a tenant may break a lease or rental agreement and leave the rental property in an extremely unclean condition. If this is the case, the landlord can use a portion of the tenants' security deposits for cleaning purposes.Nonrefundable fees. A landlord can include non-refundable fees in the lease or rental agreement apart from any security deposits, if the fees are clearly stated as ‘non-refundable’ and are included in the lease agreement. These fees can then be deducted from the security deposit when the lease ends.
Along with non-refundable fees, sometimes a landlord will deduct other charges from the security deposit, such as repairs that are normally considered wear and tear, but which the landlord does not assume the responsibility to fix.
These fees and charges must always be written into the signed lease agreement. Anything wrongfully withheld can spell trouble, so check the law to know what is and is not wrongfully withheld.
Here Is a Guide to Arizona’s Security Deposit Law
Arizona Security Deposit Limit
Regulations are in place in most states to cap the amount Arizona landlords can request for a security deposit as part of the landlord-tenant law.
Under Arizona security deposit law, a landlord can request a maximum of one-and-a-half month’s rent for security deposits. If the lease agreement is for a mobile home a landlord can increase the deposit to equal 2 months of rent.
Non-refundable Fees
Are non-refundable fees allowed under Arizona security deposit laws?
Yes, a landlord can request non-refundable fees apart from security deposits in the rental agreement, if they specify the fees as ‘non-refundable’ within the lease agreement. For example, a landlord may ask for a non-refundable pet or cleaning deposit.
Storing a Tenant's Deposit in Arizona
Many states stipulate how a security deposit must be stored. For example, in Utah a landlord does not need to store a security deposit in a separate account, and the amount of the deposit doesn’t accumulate interest. Things are different under Arizona security deposit laws.
In Arizona, a landlord also doesn’t need to store the security deposit in a separate account. If the security deposit concerns a mobile home, however, interest is applied at a maximum rate of 5%.
Reasons to Withhold a Tenant’s Security Deposit in Arizona
Certain situations can cause a landlord to withhold either a portion or the entire amount of a tenant’s security deposit. In the state of Arizona and under Arizona's security deposit laws these can include:
If a tenant has left the premises for at least 7 days and does not notify the landlord, and the rent is at least 10 days overdue.
In this case, the tenant may no longer have rights to the security deposit. The landlord must first send the tenant a written notice of abandonment by certified mail and post a notice to the tenant’s door. The tenant then has five days to respond.A landlord can withhold the deposit if a tenant excessively damages the property beyond normal wear and tear. The excessive damages cannot be pre-existing. This is why it is important to perform a walk-through prior to leasing, which we will address below.
Though a landlord can agree to allow pets, if the animal causes destruction to the property, the security deposit can be used for repairs.
When a landlord and tenant have made an agreement to apply the security deposit to the tenant’s last installment of rent.
Security Deposits can be used to pay for non-refundable fees or charges, providing the amounts have been specifically written into the lease. Refundable security deposits are revoked under certain circumstances when a tenant's failure to comply is shown.
A Walk-Through Inspection
It is wise for the landlord to perform a walk-through inspection before a tenant signs a lease. The landlord should first perform a walk-through inspection alone, to note all pre-existing damages for the move-out inspection.
The landlord should pay attention to the condition of the walls, ceilings and floors, as well as the appliances and any furniture. Afterward, the landlord can accompany the tenant on a walk-through inspection. These steps can help the landlord and tenant avoid future disputes and protects both parties when the move-out inspection is conducted.
Security Deposit Refund in Arizona
Under Arizona's security deposit laws, Arizona landlords must return the security deposit to the tenant within 14 days. The 14-day period begins once the tenant has terminated the lease agreement, returned the keys and vacated the premises, and requested the return of the security deposit.
Change in Property Ownership
If a landlord decides to sell their property while a tenant’s lease agreement is active and ongoing, the new owner inherits the pre-existing lease. The new owner will also have the same obligations as the previous landlord and must return the security deposit once the lease ends.
Bottom Line
An experienced property management company can provide answers to your inquiries regarding security deposits or any other aspects governed by Arizona landlord-tenant laws, including Arizona security deposit laws, through their legal resources. As well, an Arizona state lawyer can help with specific concerns. If you’re still feeling confused, get in touch with our team at Service Star Realty. We’ll help your rental property find success adhering to the Arizona law!
Disclaimer: This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws like security deposit law and the Fair Housing Act frequently change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regard to this content or any other aspect of your property management needs.
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016
(480) 426-9696
