| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, utilities, and late fees
Costs of damage Damages due to tenant’s noncompliance Charges outlined in the lease |
| Return Deadline | 14 Business Days |
| Itemized Deductions | Required |
| Penalty for Late Return | 3x Amount Wrongfully Withheld |
For laws on security deposit collections and holdings in Arizona, click here.
Security Deposit Deductions in Arizona
In Arizona, the following can be deducted from security deposits:
- Unpaid rent, utilities, and late fees
- Costs of damage excluding normal wear and tear
- Damages due to tenant’s noncompliance with the law
- Other charges as outlined in the lease
Most states, such as Arizona, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Arizona?
“Normal wear and tear” is deterioration that occurs naturally as a result of the tenant using the property as it was designed to be used. Examples include:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive Damage” means destruction to the rental unit that occurs because of abuse or negligence by a tenant during the course of the tenancy. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Arizona?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Arizona?
Landlords can charge a tenant for nail holes if they damage the walls in a way that is not a result of ordinary enjoyment of the rental unit.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage and thus, chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Arizona?
Landlords in Arizona can charge a non-refundable, reasonable cleaning fee if it is specifically stated in the lease agreement. However, a cleaning fee is not considered part of the security deposit.
Landlords can make deductions from the security deposit for cleaning, but only if the tenant causes damage that requires cleaning, such as wine stains on the carpet.
Can the Landlord Charge for Painting in Arizona?
A landlord can charge for painting, except for normal wear and tear. For example, if the tenant:
- Causes damage beyond normal wear and tear
- Repaints the wall but is not permitted to do so under the lease agreement
- Repaints the wall in an unprofessional way
Normal wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.
Can a Security Deposit Be Used for Last Month’s Rent in Arizona?
Arizona law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Returns in Arizona
Landlords in Arizona must return a security deposit by first-class mail with a written statement of deductions (if any) to the tenant’s last known address (unless other arrangements are made) no later than 14 days after the required conditions have been met.
If requested by the tenant, the landlord must allow the tenant to be present at the move-out inspection.
How Long Do Landlords Have to Return Security Deposits in Arizona?
Arizona landlords have 14 business days to return any unused portion of the security deposit. The period begins once all three of these events have occurred:
- The tenancy terminates
- The tenant requests the security deposit
- The tenant vacates the rental unit
Do Landlords Owe Interest on Security Deposits 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 Do Landlords Give Notice?
If deductions are to be made from the security deposit, a written statement of deductions must be sent by first-class mail to the tenant’s last known address, unless otherwise agreed in writing.
The tenant must dispute the deductions within 60 days after the written statement of deductions was mailed or else they waive their right to make a claim.
Security Deposit Disputes in Arizona
If landlords do not return the security deposit within the required time period, tenants can file a claim in court for up to three times the amount wrongfully withheld.
Tenants can also take legal action against a landlord for:
- Failure to provide written notice that lists deductions if the security deposit is not returned in full
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Arizona?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of Justice Court if the amount of damages is less than $3,500. If the amount is greater, the tenant must file a civil case in Justice Court.
A small claims case regarding the return of a security deposit must be filed within one to six years depending on the type of case.
Cases are filed in the Justice Court where the property is located or where the plaintiff or defendant lives. An attorney is not required but is permitted if both parties agree in writing. The filing fee is $25.
Sources
- 1 AZ Rev Stat § 33-1321
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…security may be applied to the payment of all rent…all charges as specified in the signed lease agreement, or as provided in this chapter, including the amount of damages which the landlord has suffered by reason of the tenant’s noncompliance…
Source Link - 2 AZ Rev Stat § 33-1321
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This section does not preclude the landlord or tenant from recovering other damages to which the landlord or tenant may be entitled under this chapter.
Source Link - 3 AZ Rev Stat § 33-1310
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“Security” means money or property given to assure payment or performance under a rental agreement. Security does not include a reasonable charge for redecorating or cleaning.
Source Link - 4 AZ Rev Stat § 33-1368
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A tenant may not withhold rent for any reason not authorized by this chapter.
Source Link - 5 AZ Rev Stat § 33-1321
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…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.
Source Link - 6 AZ Rev Stat § 33-1321
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Within fourteen days, excluding Saturdays, Sundays or other legal holidays, after termination of the tenancy and delivery of possession and demand by the tenant the landlord shall provide the tenant…with the amount due and payable to the tenant, if any.
Source Link - 7 AZ Rev Stat § 33-1431
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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.
Source Link - 8 AZ Rev Stat § 33-1321
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Unless other arrangements are made in writing by the tenant, the landlord shall mail the itemized list and any amount due, by first class mail, to the tenant’s last known place of residence.
Source Link - 9 AZ Rev Stat § 33-1321
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If the tenant does not dispute the deductions or the amount due and payable to the tenant within sixty days after the itemized list and amount due are mailed as prescribed by this subsection, the amount due to the tenant as set forth in the itemized list with any amount due is deemed valid and final and any further claims of the tenant are waived.
Source Link - 10 AZ Rev Stat § 33-1321
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If the landlord fails to comply with subsection D of this section, the tenant may recover the property and money due the tenant together with damages in an amount equal to twice the amount wrongfully withheld.
Source Link - 11 AZ Rev § Stat 22-503
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The small claims division has concurrent original jurisdiction…in actions in which…the amount at issue does not exceed three thousand five hundred dollars.
Source Link - 12 AZ Rev Stat § 22-512
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An attorney-at-law shall not appear or take any part in the filing or prosecution or defense of any matter designated as a small claim…the parties may stipulate by written agreement to the participation of attorneys in actions designated as small claims…
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