| Quick Facts | Answer |
| Maximum / Limit | 1½ months’ rent (except 2 months for mobile homes) |
| Receipt Requirement | None |
| Inventory Requirement | Blank checklist must be provided |
| Interest Requirement | None (except for mobile homes) |
To learn about laws on security deposit returns in Arizona, click here.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
Maximum Security Deposit Allowed in Arizona
Arizona law limits the maximum security deposit to one and one-half months’ rent, although a tenant is not prohibited from freely agreeing with the landlord to prepay rent in more than this amount. Landlords can collect up to two months’ rent as a security deposit for mobile homes.
Can Landlords Charge an Additional Pet Deposit in Arizona?
Yes, landlords can collect an additional pet deposit in Arizona, except for service dogs and emotional support animals. However, the total security deposit cannot exceed one and one-half months’ rent (or two months’ rent for mobile homes). Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit.”
This law does not prevent landlords from adding a monthly pet premium.
How Much Rent Can a Landlord Collect Upfront in Arizona?
There is no limit on the amount of rent that can be collected upfront in Arizona if the tenant agrees to prepay rent.
Security Deposit Collections in Arizona
When collecting a security deposit, landlords in Arizona must provide the tenant with:
- A move-in form to document the condition of the rental unit
- A signed copy of the lease agreement
- Notice that the tenant may request to be present at the move-out inspection
Do Landlords Have To Provide a Receipt for the Security Deposit in Arizona?
Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in Arizona.
What Obligations Do Landlords Have to Establish the Condition at Move-in in Arizona?
To collect a security deposit, landlords in Arizona must provide a move-in form so that tenants can document the condition of the rental unit at the start of the lease term. This law does not require landlords to document the condition at move-in, just provide tenants with the documentation to do so.
Although this specific format is not required by law, the Move-In Checklist provided by the Arizona Association of Realtors can be used.
Security Deposit Holdings in Arizona
Arizona law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Arizona does not.
Are Tenants Entitled to Interest on Their Security Deposit in Arizona?
Arizona law does not require landlords to provide interest on held security deposits unless the security deposit is for the rental of a mobile home, in which at least 5% annual interest must be provided.
How Are Security Deposits Accounted for in Arizona?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Arizona?
When a property is sold in Arizona, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.
Sources
- 1 Ariz. Rev. Stat. § 33-1321(A)
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A landlord shall not demand or receive security, however denominated, including prepaid rent in an amount or value of more than one and one-half month’s rent. This subsection does not prohibit a tenant from voluntarily paying more than one and one-half month’s rent in advance.
Source Link - 2 Ariz. Rev. Stat. § 33-1431(A)
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A landlord shall not demand or receive as security, however denominated, prepaid rent in an amount or value in excess of two months’ rent. This subsection does not prohibit a tenant from voluntarily paying more than two months’ rent in advance.Source Link
- 3 Ariz. Rev. Stat. § 33-1321(C)
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On move in, a landlord shall furnish the tenant with a signed copy of the lease, a move-in form for specifying any existing damages to the dwelling unit and written notification to the tenant that the tenant may be present at the move-out inspection. On request by the tenant, the landlord shall notify the tenant when the landlord’s move-out inspection will occur. If the tenant is being evicted for a material and irreparable breach and the landlord has reasonable cause to fear violence or intimidation on the part of the tenant, the landlord has no obligation to conduct a joint move-out inspection with the tenant.
Source Link - 4 Ariz. Rev. Stat. § 33-1431(B)
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The landlord shall pay not less than five per cent annual interest on any damage, security, cleaning or landscaping deposit required by a landlord of a tenant. The landlord shall either pay the interest annually or compound the interest annually.
Source Link - 5 Ariz. Rev. Stat. § 33-1321(H)
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The holder of the landlord’s interest in the premises at the time of the termination of the tenancy is bound by this section.Source Link
