Security deposit return law in Arizona

In Arizona, a landlord must return the security deposit within 14 business days (A.R.S. 33-1321). Exactly when that clock starts, and what has to go back with the money, is where states differ most, so the rest of this page stays close to the statute's own words rather than a generic summary.

When the clock starts, and what goes with the money

Within 14 days, excluding Saturdays, Sundays, and legal holidays, after termination of the tenancy, delivery of possession, and demand by the tenant, the landlord must provide an itemized list of all deductions together with payment of the amount due (A.R.S. 33-1321(D)). At move-in the landlord must furnish a signed lease copy and a move-in condition form, and must notify the tenant in writing of the right to be present at the move-out inspection (33-1321(C)).

How much you can collect

Arizona caps the security deposit at one and a half months' rent (A.R.S. 33-1321). The conditions attached to that cap matter as much as the number:

Landlord may not demand or receive more than one and one-half months' rent as security; a tenant may voluntarily pay more (A.R.S. 33-1321(A)). The stated purpose of any nonrefundable fee must be in writing; any fee or deposit not designated nonrefundable is refundable (33-1321(B)).

What it costs to get this wrong

Failure to comply with the return-and-itemize requirement lets the tenant recover the property and money due plus damages equal to twice the amount wrongfully withheld (A.R.S. 33-1321).

Holding the deposit

No escrow, separate-account, or interest requirement. The only holding-adjacent rule is the written-purpose requirement for nonrefundable fees (33-1321(B)).

Common questions

How long does an Arizona landlord have to return a security deposit?

14 business days, under A.R.S. 33-1321. When that clock starts, and what has to accompany the money, is set out in the statute: Within 14 days, excluding Saturdays, Sundays, and legal holidays, after termination of the tenancy, delivery of possession, and demand by the tenant, the landlord must provide an itemized list of all deductions together with payment of the amount due (A.R.S. 33-1321(D)). At move-in the landlord must furnish a signed lease copy and a move-in condition form, and must notify the tenant in writing of the right to be present at the move-out inspection (33-1321(C)).

Does Arizona cap the security deposit?

Yes, one and a half months' rent. Landlord may not demand or receive more than one and one-half months' rent as security; a tenant may voluntarily pay more (A.R.S. 33-1321(A)). The stated purpose of any nonrefundable fee must be in writing; any fee or deposit not designated nonrefundable is refundable (33-1321(B)).

What happens if an Arizona landlord misses the deadline or withholds wrongly?

Failure to comply with the return-and-itemize requirement lets the tenant recover the property and money due plus damages equal to twice the amount wrongfully withheld (A.R.S. 33-1321).

Does an Arizona security deposit have to be held a particular way?