Arizona Residential Lease Agreement

Last Updated: November 9, 2023 by Roberto Valenzuela

An Arizona residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.

Arizona Residential Lease Agreement Disclosures

These disclosures are required for some or all residential lease agreements in Arizona:

Disclosure Applicability
Landlord’s Name/Address All Units
Move-In Checklist All Units
Residential Landlord/Tenant Act All Units
Shared Utilities Arrangements All Units With Shared Utility Meters
Bed Bugs Non-Single Family Residence
Rent Adjustment All Units That Will Adjust Rent
Non-Refundable Fees All Units that Charge Non-Refundable Fees
Pool Enclosure All Units With a Pool
Lead-Based Paint All Units Built Prior to 1978

Landlord’s Name and Address

Applicable to all rental units in Arizona.

Arizona leases must contain the name and address of the landlord or authorized agent. This enables smooth communication of any important legal notice. This contact information is most often written in the lease agreement, for maximum convenience. The landlord has an obligation to notify the tenant in the event of a change in contact information.

Move-In Checklist

Applicable to all rental units in Arizona.

Arizona landlords must provide a move-in checklist (alongside a signed copy of the lease) to inventory existing property damage, when the tenant takes possession of the rental property. The checklist should be completed within five days of move-in. This enables accurate deductions from the security deposit upon move-out.landlords are required to provide a  upon taking possession of the property.

Download: Arizona Move-In Checklist Disclosure Form (PDF)

Residential/Landlord Tenant Act

Applicable to all rental units in Arizona.

Arizona landlords must, at or before move-in, inform the tenant (in the lease or separately) that the Arizona Residential Landlord and Tenant Act may be reviewed on the Arizona Department of Health website.

Shared Utilities Arrangements

Applicable to any rental units with a shared utility meter in Arizona.

In Arizona, when multiple rental units share a utility meter for the whole building or property, the landlord may charge separately for utilities through the installation of a submetering system or ratio billing system. The landlord must disclose how the charges are billed to individual tenants.

For ratio billing, the cost breakdown should include the specific method used to allocate and calculate costs to the tenant.

Ratio billing uses strategies like charging by:

  • Number of tenants
  • Unit square footage
  • Number of outlets or water fixtures
  • Even split between tenants
  • Any other method outlined in the lease.

For submetered systems, a cost breakdown should include:

  • Beginning and ending meter readings for the term
  • Dates of beginning and ending readings
  • Breakdown of charges for each utility
  • Administrative fee(s) charged (if applicable)

    This an example of a shared utility agreement section:

    UTILITIES: This rental unit shares the following utilities with another unit or common area:
    [ ] Electricity
    [ ] Water
    [ ] Gas
    [ ] Sewage
    [ ] Other: ______________________________

    This lease uses the following method for calculating utility charges between Tenant(s):
    [ ] Home Square Footage
    [ ] Number of Tenants
    [ ] Even Split Between Tenants
    [ ] Other:___________________________

    Tenant agrees to pay the monthly utility charge to Landlord, plus a $__ service charge as part of each month’s rental payment.

    Download: Arizona Shared Utility Arrangement Disclosure Form (PDF)

    Bed Bug Disclosure

    Applies to all Arizona rentals other than single-family residences.

    Arizona landlords must disclose any known infestation status on rental property. In addition, they must provide educational materials (usually an addendum) and include a bed bug section in their lease agreements. A bed bug addendum addresses the following:

    • Measures that may prevent or control bed bugs
    • Information on bed bugs, including their appearance
    • Risk factors for attracting bed bugs (such as the risk of purchasing used or leased furniture and clothing)
    • Protocol for preventing and reporting infestations
    • Information provided by state and local agencies, plus the Centers for Disease Control and Prevention
    • Information provided by federal, state, local or non-profit housing agencies
    • Information provided by the landlord about conditions in the rental property or locality

    This is an example of a bed bug disclosure section and addendum:

    BED BUGS. At the time of presenting this agreement, Landlord certifies:

    [ ] There is no known current infestation or history of bed bugs in this property.
    [ ] No known current infestation, but there is a history of infestation in this property.
    [ ] There is no known current infestation, but there is a nearby infestation or history of infestations which may place the property at risk.

    Download: Arizona Bed Bug Disclosure Form (PDF)

    Rent Adjustments

    Applicable to any unit in Arizona where the landlord wishes to adjust rent based on property tax increases.

    Arizona landlords may increase rent by the amount of a property tax increase by the local municipality, passing the cost of the increase to the tenant. To do so, the lease must contain a rent adjustment disclosure. Any increase in rent may not begin until the new tax comes into effect, and cannot be enforced until the tenant has received at least 30 days of advance notice about the increase.

    This is a sample disclosure requirement for a rent adjustment in Arizona:

    RENT INCREASES. The Rent due is subject to an increase directly proportionate to the increase in any municipal taxes levied upon Landlord for the collection of residential rent charges. Written notice will be provided thirty (30) days before enforcement of rent increases.

    Non-Refundable Fees

    Applicable to any Arizona unit where the landlord imposes nonrefundable fees.

    Charges not agreed by the tenant in the lease may be refundable upon lease termination. For Arizona landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease.

    Pool Enclosure Disclosure

    Applicable to any Arizona rental units with pool access.

    Arizona properties with an aboveground or belowground pool or any other body of water intended for swimming that is 18 inches or more in depth and at least eight feet wide must provide tenants with an educational safety notice approved by the Department of the Health Services about the use and maintenance of the pool. This includes notice about pool enclosure requirements.

    Download: Arizona Pool Enclosure Disclosure Form (PDF)

    Lead-Based Paint Disclosure

    Applicable to any Arizona rental units built prior to 1978.

    For any property built before 1978, federal law requires that a STATE residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:

    Download: Arizona Lead-Based Paint Disclosure Form (PDF)

    Optional Disclosures and Addenda (Recommended)

    The following lease agreement disclosures and addenda are not required by Arizona law in residential lease agreements, but assist with tenant management and help limit landlord liability.

    Optional Disclosure Purpose
    Asbestos Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of asbestos fibers.
    Late/Returned Check Fees This disclosure specifies late fees or returned check fees related to the lease. In Arizona late fees must be “reasonable,” and returned check fees are capped at $25.
    Medical Marijuana Use Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas.
    Mold Disclosure Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability.
    Smoking Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants.
    note
    Some Arizona cities, like Phoenix, Mesa, and Tucson, have more comprehensive rules than the statewide standard. Always check local laws.

    Consequences of Not Including Mandatory Disclosures

    Mandatory disclosures outline important health, safety, and property information for both landlord and tenant safety. A landlord who fails to provide federally or state-mandated disclosures could face legal repercussions or monetary penalties, either from a tenant lawsuit or from state officials.

    If a landlord fails to provide the pool enclosure disclosure or violates the disclosure, they could be found guilty of a petty offense.

    Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.

    Sources