The Arizona residential lease agreement (“rental agreement”) outlines the terms and conditions of the residential use of real estate in exchange for rent payments. This contract may also require an additional fee (“security deposit”) due on or before the move-in date.
Arizona Lease Disclosures & Addendums
The following disclosures or addendums are either required for some or all residential lease agreements in Arizona.
- Landlord’s Name & Address – for all rental units in Arizona.
- Move-in Checklist – for all rental units in Arizona.
- Notice of Arizona Residential Landlord and Tenant Act – for all rental units in Arizona.
- Shared Utilities Arrangements – for all rental units with shared utility meters.
- Bed Bug Disclosure – for all rental units in Arizona.
- Rent Adjustment Disclosure – for any rental unit where rent will be increased during the lease term.
- Refundable/Nonrefundable Fees – for any lease that charges nonrefundable fees.
- Pool Enclosure Disclosure – for any rental unit with access to a pool.
- Lead Based Paint Disclosure – for rental units built prior to 1978.
There are also a number of optional disclosures and addendums that help reduce future conflicts and/or legal liability in Arizona.
Landlord’s Name & Address
Applicable to all rental units in Arizona.
So that future legal notices and demands sent by the tenant can be properly delivered to the landlord, the name and address of either the landlord or the person authorized to act on the landlord’s behalf must be disclosed up-front (commonly done so in the lease agreement) .
Move-In Checklist
Applicable to all rental units in Arizona.
Arizona landlords are required to provide a move-in checklist (alongside a signed copy of the lease) upon taking possession of the property. This checklist can be used to identify existing damages to help itemize deductions from the security deposit (if applicable) upon move-out .
The checklist does not need to be included as part of the lease, but should be completed within 5 days of move-in to ensure accurate status. The checklist should include any present damage or specific furnishings that are included (such as appliances or furniture) that must be returned in the same state they were upon move-in.
Here is an example of a checklist that is sufficient for meeting state requirements.
Notice of Arizona Residential Landlord and Tenant Act
Applicable to all rental units in Arizona.
Arizona tenancy law requires that landlords provide notice about resources available to tenants as part of the rental process. In Arizona, the landlord must inform the tenant (in the lease or separately) that the Arizona Residential Landlord and Tenant Act is available online at the Arizona Department of Housing’s website .
The Act can be found on the Arizona DOH website.
Shared Utilities Arrangements
Applicable to any units without individual meters.
In Arizona, when multiple units share a master 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 .
For ratio billing, the breakdown must include the specific method used to allocate and calculate costs to the tenant.
For submetered systems, this breakdown must include:
- Beginning and ending meter reading for the term
- The dates of beginning and ending readings
- Breakdown of charges for each utility
- Administrative fee charged (if applicable)
Ratio billing can use 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
The following is 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.
Bed Bug Disclosure
Applies to any non-single family residence
To protect against the contraction and spread of an infestation, landlords may not rent out a unit with an active infestation in Arizona. It is also required that landlords in Arizona provide educational materials (usually an addendum) and include a bed bug section in their lease agreements . This addendum provides information about preventing infestations and the proper protocol if one arises so that the landlord can minimize the potential damage.
It also helps to limit liability for the landlord by establishing an understanding of the current status of the property, and protects in the case of an infestation occurring later in the lease term.
The following 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.
[ ] There is 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.
Here are educational materials made specifically for Arizona’s bed bug disclosure laws.
Rent Adjustments
Applicable to any unit where the landlord wishes to adjust rent.
In the case that taxes charged on residential rent are increased by local municipalities, an Arizona landlord may increase the rent by the same figure for an existing lease with the inclusion of a rent adjustment disclosure. This increase in rent may not begin until the new tax comes into effect and 30 days of notice must be provided before it is enforced .
The following could be included to satisfy the disclosure requirements 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.
Refundable/Nonrefundable Fees
Applicable to any unit where the landlord imposes nonrefundable fees.
If fees are charged in the lease for pets or other one-time expenses like access to amenities, they must be stated to be nonrefundable in the lease. Otherwise, they are subject to a refund upon termination of the lease .
Pool Enclosure Disclosure
Applicable to any rental units with pool access.
Properties with a pool are required by Arizona law to provide an educational safety notice about use and maintenance of the pool to any tenants with access .
A residential pool safety notice is available from the Arizona Department of Health.
Lead Based Paint Disclosure
Applicable to any rental units built prior to 1978.
It is a federal law in the United States that any home built prior to 1978 must disclose the risks posed by lead-based paints. This law requires landlords in Arizona to:
- Fill out and attach this lead based paint disclosure form to the lease agreement.
- Provide the tenant with an EPA-approved pamphlet about the dangers of lead-based paint.
- Provide additional records or reports about the presence or hazards of any known lead based paint in the unit. For multi-unit buildings with common areas, this includes information from building-wide evaluations.
Optional Disclosures & Addendums (Recommended)
The following lease agreement disclosures and addendums are not required by Arizona law in residential lease agreements, but either help reduce future conflicts with tenants or reduce legal liability for landlords.
- Medical Marijuana Use – it is recommended to state where medical marijuana use is and isn’t allowed on the property so that expectations are clear. Arizona law allows landlords to restrict marijuana usage to non-smoking methods only or control where users can smoke so as to not interfere with other tenants.
- Late and Returned Check Fees – it is recommended that landlords disclose in the lease any late fees or returned (bounced) check fees that they intend to charge. Arizona does not limit how high these fees can be, but they should be considered reasonable (often no more than 10% of rent) and reflect the actual expenses incurred by the landlord as a result of a late payment. They must also be charged only after the agreed upon due date for rent, dictated in the lease.
- Asbestos Disclosure – for rental units in buildings built prior to 1981 (which are considered at-risk for asbestos), it is recommended to establish an understanding of any prior knowledge on the existence of asbestos on the property.
- Mold Disclosure – it is recommended to disclose the current mold status of a property in the lease to protect against future liability of mold damages due to tenant negligence during the lease term.
