Arizona security deposit laws for landlords: 1.5 months and 14 business days

What is the most I can collect up front in Arizona?

A.R.S. 33-1321(A) says a landlord shall not demand or receive security, however denominated, including prepaid rent, in an amount or value of more than one and one half month's rent. The words "however denominated" matter: calling something a cleaning deposit or key deposit does not take it outside the cap. The section adds that a tenant may voluntarily pay more than one and a half months' rent in advance, so a tenant who offers to prepay several months is not breaking the rule, and you are not either.

Example a made-up apartment rents for $1,400 a month. The cap on security and prepaid rent together is $2,100. If you already hold $1,400 as a deposit, you can also take at most $700 more in security or prepaid rent. A tenant who chooses on their own to prepay three months of rent is the voluntary exception.

Can I charge a nonrefundable fee?

Subsection (B) says the purpose of all nonrefundable fees or deposits shall be stated in writing by the landlord, and any fee or deposit not designated as nonrefundable is refundable. If your lease lists a pet fee or a cleaning fee, say in writing what it is for and mark it nonrefundable. If you do not, treat it as part of the deposit that you may have to return and account for.

What must I give the tenant at move-in?

On move-in, subsection (C) requires three things: a signed copy of the lease, a move-in form for specifying any existing damages to the dwelling unit, and written notification that the tenant may be present at the move-out inspection. If the tenant asks, you must tell the tenant when your move-out inspection will occur. The one carve-out is a tenant being evicted for a material and irreparable breach where you have reasonable cause to fear violence or intimidation; then you have no obligation to do a joint move-out inspection.

How do the 14 business days work?

Subsection (D) lets you apply the money you hold to all rent and, subject to your duty to mitigate, all charges specified in the signed lease or provided in the chapter, including damages from the tenant's noncompliance with section 33-1341. Within fourteen days, excluding Saturdays, Sundays or other legal holidays, after termination of the tenancy and delivery of possession and demand by the tenant, you must provide an itemized list of all deductions together with any amount due.

Two details. First, the clock starts only after the tenant demands the refund, in addition to ending the tenancy and delivering possession. Second, unless the tenant makes other arrangements in writing, you mail the list and any money by first class mail to the tenant's last known place of residence.

Example a made-up tenant hands in the keys on Monday, April 6, and asks for the deposit in writing the same day. Counting only weekdays, and assuming no legal holidays fall in that stretch, the 14th business day is Friday, April 24. The landlord mails a list showing $300 for carpet cleaning beyond normal use and $120 for a damaged blind, with the $1,680 balance of a $2,100 deposit, by that date.

If the tenant does not dispute the deductions or the amount due within sixty days after the list and payment are mailed, the amounts in the list are deemed valid and final, and further claims of the tenant are waived.

What does a late or wrong refund cost?

Subsection (E): if the landlord fails to comply with subsection (D), the tenant may recover the property and money due, together with damages equal to twice the amount wrongfully withheld. Subsection (F) leaves each side free to recover other damages under the chapter, so a tenant can claim a deposit penalty and you can still claim real unpaid rent or damage.

Example a made-up landlord keeps $500 of a $1,800 deposit and never sends the list. If the $500 was wrongly withheld, the landlord owes the $500 plus damages of twice that, $1,000 in all on top of the money, so $1,500 for a $500 problem.

Can I use a deposit during the tenancy, or does it pass to a buyer?

Subsection (G) says that during the tenancy the landlord may use refundable deposits in accordance with any applicable provisions of the property management agreement, but at the end of tenancy all refundable deposits must be refunded under this section. Subsection (H) says the holder of the landlord's interest at the time the tenancy ends is bound by the section, so a buyer who owns the building at move-out owes the refund. For deposit handling at a sale, see security deposits when an apartment building is sold.

How DoorKeeping handles it

Each property in DoorKeeping has its own books, with deposits held shown per tenant. Because the Arizona cap includes prepaid rent, it helps to see both figures for a tenant together. Leases are e-signed and the move-in form can be kept with the property documents. The money stays in your own bank account, and any step involving money waits for your one tap. DoorKeeping gives no legal advice.

Sources

1. Arizona Revised Statutes 33-1321, security deposits, read Oct 30, 2026

Questions

What is the maximum security deposit in Arizona?

One and a half months' rent, counting prepaid rent (A.R.S. 33-1321(A)). A tenant may voluntarily pay more rent in advance.

How many days does an Arizona landlord have to return a deposit?

Fourteen days, excluding Saturdays, Sundays and legal holidays, after the tenancy ends, possession is delivered and the tenant demands it.

What is the penalty for not returning an Arizona deposit on time?

The money due plus damages equal to twice the amount wrongfully withheld (A.R.S. 33-1321(E)).

Does Arizona require interest or a separate account?

The section read does not require either. Subsection (G) refers to the property management agreement for use of refundable deposits during the tenancy.