Security Deposits
What is a security deposit?
A security deposit is a set amount of money a tenant gives to a property owner or landlord as proof that the tenant intends to move into a rental property such as a house, mobile home, apartment, condominium, townhome, or room.
A security deposit is intended to protect the landlord if the tenant causes damage to the property, does not pay rent, or otherwise violates the lease or rental agreement in a way that creates expenses for the landlord.
A security deposit is intended to protect the landlord if the tenant causes damage to the property, does not pay rent, or otherwise violates the lease or rental agreement in a way that creates expenses for the landlord.
How much may a landlord charge for a security deposit?
Arizona law states that a landlord can not require a security deposit more than one and one-half month’s rent.
A.R.S. § 33-1321(A)
A.R.S. § 33-1321(A)
For example, if your rent is $1,500 a month, the security deposit requested by the landlord can not be more than $2,250 which is one month’s rent ($1,500) plus one-half of one month’s rent ($750).
Can my landlord charge other fees in addition to a security deposit?
Yes, a landlord may require other fees or deposits related to renting the property if it is clearly listed in the rental agreement.
Examples of this might include:
- pet rent,
- pet deposit,
- redecorating fees, or
- fees for parking.
Depending on the terms of the lease agreement, some of these fees may be returned to the tenant at the end of the lease agreement (refundable) or not returned to the tenant (non-refundable).
For a fee to be non-refundable, it must be specifically listed in the rental agreement as “non-refundable”.
For a fee to be non-refundable, it must be specifically listed in the rental agreement as “non-refundable”.
A landlord may also ask a tenant to “voluntarily” pay advance rent in any amount (for example, first and last month’s rent) before the tenant moves into the rental unit as long as it is plainly stated in the rental agreement.
Can any part of my security deposit be non-refundable?
Yes, a portion of a security deposit or fee may be non-refundable at the end of the lease term, but it must be clearly stated in the rental agreement and it must include an explanation of the purpose of the non-refundable deposit or fee. A.R.S. §33-1321(B)
Any part of a deposit or fee that is not specifically identified in the rental agreement as “non-refundable” is considered refundable.
What expenses are my landlord allowed to deduct from my security deposit?
At the end of the rental agreement, the landlord may deduct from the security deposit:
any unpaid rent that the tenant still owes
the cost to repair any damage caused by you or your guests to the rental unit beyond ordinary wear and tear
other expenses incurred by the landlord due to the tenant not meeting lease requirements (for example, the cost of removing and disposing of any personal items or furniture left behind by the tenant), and/or
any other charges the rental agreement allows the landlord to collect from the tenant
If a landlord keeps part or all of the security deposit, they must provide the tenant, in writing, an itemized list of what amounts are being kept from the security deposit and why they are being kept. A.R.S. §33-1321(D)
What is ordinary “wear and tear”?
Normal wear and tear is the ordinary deterioration of a property due to normal everyday use. It is not damage caused by abuse or neglect.
There is a difference between normal wear and tear and damage done to a property.
There is a difference between normal wear and tear and damage done to a property.
- Carpet that is matted is normal wear and tear.
- Burns or stains on a carpet is damage caused by negligence.
- Fading or yellowing paint is considered normal wear and tear.
- Large stains in carpet or holes in the wall damages to the property that the landlord will take from the security deposit.
Steps to Get Your Security Deposit Back When You Move
When you have fully moved out of the property (or after the move-out inspection is complete), hand deliver or send by registered or certified mail a letter to the landlord requesting the return of your security deposit to your new mailing address. You will want to keep a copy of the request for your records.
Remember, if proper notice is not given, you are potentially breaching your lease and may forfeit your security deposit.
If you do not formally end your lease, owe rent, or have not returned the keys, your landlord may refuse to return your security deposit.
If you do not formally end your lease, owe rent, or have not returned the keys, your landlord may refuse to return your security deposit.
How long does my landlord have to return my security deposit?
Within 14 business days of the move out date and request for security deposit return, the landlord must provide you with an itemized list of all charges (if any) the landlord intends to deduct from the security deposit and send you the balance of the security deposit.
The list of deductions and any amount due must be sent by the landlord to the address listed in the written request or to your last known address if no forwarding address was provided.
The list of deductions and any amount due must be sent by the landlord to the address listed in the written request or to your last known address if no forwarding address was provided.
What can I do if my landlord has not returned my security deposit?
If the landlord has not provided a list of deductions and has not returned your security deposit within 14 business days after you moved out of the property, you may want to write a demand letter to the landlord asking for the security deposit to be returned.
In your letter, you will want to include a brief overview of the steps you have taken so far, copies of the notice to move out and request for return of the security deposit, the state statute (law) the landlord is supposed to follow, and the request for what you want to happen (such as the return of full security deposit amount) within 10 days of the receipt of your letter.
In your letter, you will want to include a brief overview of the steps you have taken so far, copies of the notice to move out and request for return of the security deposit, the state statute (law) the landlord is supposed to follow, and the request for what you want to happen (such as the return of full security deposit amount) within 10 days of the receipt of your letter.
What if I disagree with the deductions from my security deposit?
If you dispute the landlord’s security deposit deductions or the amount the landlord claims they owe you, you must notify the landlord in writing within 60 days.
If you do not notify the landlord of your dispute within 60 days, you will have waived your rights to challenge the landlord’s decision.
If you do not notify the landlord of your dispute within 60 days, you will have waived your rights to challenge the landlord’s decision.
If the landlord does not provide you with an itemized list of deductions, respond by the date requested in a demand letter, or if there is a dispute to the amount the landlord refunded, you can file a small claims lawsuit in court.
In addition to the money or property owed to you, the landlord may be required to pay damages up to twice the amount wrongfully withheld. A.R.S. § 33-1321(E)
In addition to the money or property owed to you, the landlord may be required to pay damages up to twice the amount wrongfully withheld. A.R.S. § 33-1321(E)
Small claims court cases are sometimes difficult to navigate on your own. You may want to find a lawyer to help with this process. To see if you qualify for a free or lower-cost legal help program, submit an application on AZLawHelp.org. To learn more about other legal resources and small claims court, visit AZCourtHelp.org.