Arizona Security Deposit Laws

In Arizona, security deposits for any rental property cannot exceed more than one and a half times the monthly rental fee.
Written by Nicole Salvia
Reviewed by Melanie Reiff
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In Arizona, the security deposit can be up to one and a half times the monthly rental fee. When you are ready to vacate the property, your landlord has 35 days to return your deposit but only if there is no damage beyond expected wear and tear.  
A security deposit can be a large up-front cost for a tenant, and it can be a lot of extra work when it’s time to get that money back. As a tenant, it’s smart to be aware of your legal rights—but tenant-landlord laws vary from state to state, so you should understand what you’re entitled to before you sign a contract.  
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What is Arizona’s law on security deposits?

Often, a security deposit is held as a way to protect the landlord from incurring extra costs from a destructive tenant or one who may break the lease early. Your security deposit is entirely refundable in Arizona as long as your lease ends in the parameters outlined in your contract. 
The Arizona Residential Landlord and Tenant Act
clarifies the rights and regulations for both landlords and tenants and imposes a “good faith” rule of thumb that both parties treat any agreements and negotiations fairly. This stipulates that a tenant is entitled to a security deposit as long as they don’t break the lease early or cause undue damage.  
There are some exceptions to the rule regarding breaking a lease and those are for:
  • A tenant who has become a victim of domestic violence
  • A tenant who is in the military and has been assigned deployment or permanent change of station orders
Tenants who meet exceptions will receive a refunded security deposit even if the lease is broken before the end date assuming there is no damage beyond what is expected upon moving out.

What is the maximum security deposit a landlord can charge in Arizona? 

In Arizona, a security deposit cannot be more than one and a half times the monthly rental fee.
Your landlord will most likely charge the security deposit amount in addition to your first months’ rent. It would be wise, if you’re able, to save up to 3 months' rent before considering entering a new lease. 
The entire security deposit should always be listed as ‘refundable’ within your lease. Be wary of a landlord that requires a security deposit and insists it is not refundable. Get clarification in writing, and it may be wise to contact a lawyer.    

How long does a landlord have to return a security deposit in Arizona? 

In Arizona, a landlord is given 35 days after your move-out date to return the security deposit or a list of any subtractions and/or damages. As you plan your move, it's a good idea to be present at the move-out inspection with your landlord.

What can a landlord withhold a security deposit for in Arizona?

As long as you respect the property in which you are living, you shouldn’t have a hard time getting your security deposit refunded. However, landlords are legally able to withhold part or all of your deposit if any of the following take place: 
  • Unpaid rent or late charges
  • Unpaid utilities or late charges
  • Damage to the dwelling that exceeds normal wear and tear
  • Any unpaid bills that become a lien against the property
  • Breach of rental agreement and costs incurred to re-leasing the unit
  • Court costs
What is normal wear and tear? Summed up, normal wear and tear covers tasks like painting, cleaning, and patching small holes from picture frames. Actual damage to a property would be carpet destruction, large holes in the walls, and water damage from a leak that went unreported, among others. 
If your landlord notifies you that they are keeping your deposit or not issuing a full refund, they must provide written notice and itemized damages within 35 days of your move-out date. A landlord is not legally able to hold your deposit without reason or proof of damage.
Key Takeaway Your security deposit is and should be refundable assuming you take care of the property and don’t cause any major damage or break a lease without due cause. 
MORE: How to find the best renters insurance

How to get your security deposit back in Arizona

You’ve moved out. It’s been over 35 days, and there is still no sign of your security deposit refund check. What do you do?  
First, try reaching out to your landlord and asking for your deposit back. A paper trail is important in this case, so do so in writing. It’s possible your landlord simply forgot to mail it out to you or doesn’t have your new forwarding address. 
However, if you believe your landlord is wrongfully refusing to process your security deposit refund, you could take them to
small claims court
. Although this can be an overwhelming process, it’s worth it if you had a pretty hefty security deposit. The sooner you claim your security deposit refund, the better—some states have a claim expiration date.
MORE: Penalties for driving without insurance

How to save money on car and renters insurance in Arizona

Moving can be very stressful, and so can chasing down a past due security deposit. But not everything is hard. Like saving money on car and renters insurance. Download the
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FAQs

No. Your last month’s rent is just that—the last months’ rent. The security deposit is strictly for covering any damage that may have taken place while you lived in the property or while you were moving out. Don’t plan on having that cash on hand quickly. Remember, it can take up to 35 days to receive your deposit back.
Yes, a landlord can bill you or deduct an amount from your security deposit for a carpet cleaning fee if stated in your lease. If your lease had an additional pet deposit, that deposit may be used for carpet cleaning if the cleaning is necessary because of a messy pet.
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