Arizona Security Deposit Laws

Author: Kasee Godwin
Date: 10.04.2022

It’s commonplace in Arizona for property owners to collect one-and-a-half-month security deposit from renters to protect themselves against damages and delinquent rent. Arizona has clear legislation concerning security deposit collection. Here’s a brief summary of Arizona’s legislation around security deposit regulations for rental properties.

Is there a limit on how much the property manager/owner can charge for an application fee? If so, what is that amount?

There is no limit on the application fee amount in the state of Arizona. Application fees are non-refundable.

What is the security deposit amount the landlord can collect?

As an Arizona property owner, you can request a security deposit of up to one and a half months rent to protect your property in the event of damages or unpaid rent.

Can the property manager/owner collect a fee for pets? <h/2>

A pet deposit separate from the apartment security deposit is allowed in the state of Arizona, however, the amount of the pet security deposit alongside the rental security deposit cannot exceed one and a half months rent. Service pets are an exemption, and disabled persons with service pets do not have to pay an additional security deposit.

How does the security deposit need to be held? <h/2>

Arizona property managers do not need to deposit security deposits into a separate account.

Is the property manager/owner required to tell the resident where the deposit is held?<h/2>

Property managers in Arizona do not have to tell residents where the security deposit is held.

Is the property manager/owner required to tell the resident what the interest rate on the account is (if applicable)?

Property owners in Arizona are not required to tell residents what the interest on their security deposit it.

What can the property manager/owner deduct from the security deposit?

Property owners in Arizona may keep a portion of the security deposit to cover unpaid rent or damages that exceed normal wear and tear. Property owners can also use the security deposit to cover the cost of charges specified in the lease agreement, non-refundable fees or deposits, provided they have been states as non-refundable in the rental agreement.

How long does the property manager/owner have to return the security deposit after the lease has ended?

Property owners in Arizona must return the security deposit remainder (after additional costs have been incurred if applicable) within 14 days from vacating the property alongside itemized list of deductions if any exist. The 14 days begins once the lease has ended, the renter has returned the keys or vacated the property and has asked for the security deposit back.

If the renter abandoned the property without notice for at least seven days, and rent has been unpaid for ten days, the security deposit may be forfeited. In such a case, the property owner must send the renter a notice of abandonment via certified mail as well as post it on the door of the rental unit. Failure to acknowledge abandonment within five days will enable the property owner to take back the property and the security deposit.

What penalties does the property manager/owner face if they do not return the security deposit on time?

Property owners in Alaska must provide itemized descriptions of the damages and repair costs to tenants within the 14 days following lease termination, or they may be up to double the amount of the security charges.

What is the process for the property manager/owner to claim the security deposit funds?

In the state of Arizona, an itemized receipt must be sent to the vacating tenant with the refund detailing the exact reasons for which the property owners has withheld all or part of the security deposit.

Is the resident allowed to apply their security deposit towards the last month’s rent?

According to Arizona state law, residents may request to use the security deposit for their last months’ rent, however it is not mandatory for property owners to accept. In the event that a property owner accepts such an agreement, a written agreement must be made.

To summarize, Arizona law concerning security deposit regulations for rental properties is quite standard and clear. Property owners in Arizona should maintain accurate records of all damages incurred to their property in order to provide renters with an itemized list of deductions, if applicable, at the end of the lease.

Disclaimer & Sources:

Qira aims to keep this information as up-to-date as possible. The content provided here is for informational purposes and should not replace legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.


Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

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