Arizona Security Deposit Collections & Holdings

Arizona Security Deposit Collections & Holdings

Last Updated: January 12, 2023 by Ashley Porter

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.

Maximum Security Deposit Allowed in Arizona

Arizona law limits the maximum security deposit to one and one-half months’ rent. However, 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.