Overview
Arizona's security deposit laws are governed by the Arizona Residential Landlord and Tenant Act (A.R.S. § 33-1321). The law sets a clear maximum on how much landlords can collect, requires transparent accounting of deductions, and establishes a business-day-based return timeline that is among the most specific in the country.
This guide covers everything landlords and tenants need to know about security deposits in Arizona.
Deposit Limits
Arizona law sets the following security deposit limits:
- Maximum deposit: 1.5 months' rent (one and one-half months' rent)
- Nonrefundable fees: Landlords may charge nonrefundable fees (such as a nonrefundable cleaning fee), but these must be clearly stated as nonrefundable in writing at or before the time the fee is collected
- Prepaid rent: Prepaid rent is separate from the security deposit and is not subject to the 1.5-month limit
The total amount of the security deposit and prepaid rent combined cannot be used to circumvent the statutory cap. Any deposit designated as a "security deposit" is subject to the return and itemization requirements.
cite: Ariz. Rev. Stat. § 33-1321(A)
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed through the termination of the tenancy
- Cleaning: Costs to restore the unit to the same level of cleanliness as at the start of the tenancy
- Damage beyond normal wear and tear: Repairs for tenant-caused damage exceeding ordinary wear
- Unpaid utilities: Utility charges that are the tenant's responsibility under the lease
- Lease violations: Costs resulting from the tenant's breach of the lease agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls from everyday living
- Small nail holes from hanging pictures
- Carpet wear from normal foot traffic
- Minor fading of paint from sunlight
- Worn or slightly loose door handles
Damage beyond normal wear and tear includes:
- Large holes in walls, doors, or ceilings
- Stained, burned, or ripped carpet
- Broken windows, blinds, or fixtures
- Pet damage including scratches, stains, or odors
- Unauthorized modifications to the unit
Return Timeline
Arizona landlords must return the security deposit within 14 business days after the tenant moves out and the landlord receives possession of the unit. The landlord must provide:
- The remaining deposit balance (after lawful deductions)
- An itemized written statement listing each deduction, the reason, and the amount
The statement and any refund must be mailed to the tenant's last known address or forwarding address provided by the tenant. If the landlord fails to comply within the 14 business day period, the tenant is entitled to the return of the entire deposit.
cite: Ariz. Rev. Stat. § 33-1321(D)
Move-In Condition Checklist
Arizona law requires landlords to provide tenants with a move-in inspection form at the start of the tenancy. Both the landlord and tenant should sign this checklist documenting the condition of the premises. This form serves as the baseline for determining whether damage occurred during the tenancy and protects both parties during the deposit return process.
If the landlord fails to provide a move-in checklist, it may be more difficult for the landlord to justify deductions from the deposit.
cite: Ariz. Rev. Stat. § 33-1321(C)
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Justice Court (small claims division handles disputes up to $3,500)
- File a civil action in Justice Court or Superior Court for larger amounts
If the landlord wrongfully withholds the deposit or fails to provide the required itemized statement within 14 business days, the tenant may recover the full deposit amount plus up to twice the deposit amount as damages in a court action.
Landlords should maintain thorough documentation throughout the tenancy, including the move-in checklist, photographs, maintenance records, and repair receipts.