1️⃣ Maximum Deposit
- You cannot charge more than 1.5 months’ rent total (A.R.S. §33-1321(A)).
- This includes any prepaid rent.
- A tenant may choose to pay more, but it must be voluntary.
2️⃣ Nonrefundable Fees
- All nonrefundable fees or deposits must be clearly stated in writing.
- If it’s not labeled “nonrefundable,” it’s legally refundable.
3️⃣ Move-In Requirements
Landlords must provide:
- A signed lease copy.
- A move-in inspection form to document existing damages.
- Written notice that the tenant may be present at move-out inspection.
4️⃣ Returning the Deposit
- Within 14 business days after move-out and possession is returned, you must:
- Send an itemized list of any deductions.
- Mail any refund by first-class mail to the tenant’s last known address.
- If the tenant doesn’t dispute within 60 days, your accounting becomes final.
5️⃣ Penalties for Violations
- If you fail to send the deposit statement within 14 business days, the tenant can recover twice the amount withheld (A.R.S. §33-1321(E)).
- Keep detailed records, photos, and receipts for any deductions.
6️⃣ Practical Tips
✅ Do a documented move-in and move-out inspection with photos.
✅ Provide receipts for any repair or cleaning charges.
✅ Avoid “flat” cleaning or damage fees that aren’t justified.
✅ Communicate in writing — clarity protects both sides.
💡 Pro Tip
Fast, transparent communication about deposits makes tenants trust you — and helps prevent disputes or bad reviews.