Arizona Security Deposits vs. Damage Deposits: Renter Rules

Understanding the rules around security deposits—and what some call damage deposits—can save Arizona renters time, money, and stress. Knowing your rights under Arizona law ensures you’re treated fairly when you move in and out of a rental property.

What Is a Security Deposit in Arizona?

A security deposit is money you pay your landlord at the start of your lease to cover potential unpaid rent or property damage. In Arizona, all deposits to protect against damages, unpaid rent, or other possible losses are called “security deposits” under the law, even if your lease uses the term "damage deposit." State law limits the total amount your landlord can request as a security deposit.

Deposit Limits and Definitions

• Maximum deposit: Your landlord cannot require more than one and one-half months’ rent for a security deposit. For example, if you pay $1,000 rent, the maximum deposit allowed is $1,500.
• Nonrefundable fees: Any nonrefundable fee (such as a cleaning or pet fee) must be stated in writing in your lease. All other funds charged remain refundable security deposit unless specified otherwise.

The rules on deposits are set by the Arizona Residential Landlord and Tenant Act, Section 33-1321.¹

Security Deposit vs. Damage Deposit: What’s the Difference?

In Arizona, both terms refer to the same thing in practice. A landlord cannot ask for a separate “damage deposit” above and beyond the legal security deposit cap. All up-front money meant to protect the landlord—except for clearly labeled nonrefundable fees—count toward your legal security deposit limit. This regulation protects Arizona renters from being overcharged at move-in.

When Can a Landlord Keep a Deposit?

Your landlord can use your deposit for:

• Unpaid rent
• Repairing damages beyond normal wear and tear
• Costs outlined in your lease (if legal and clearly stated)

If you leave the rental in good condition, pay your rent, and follow the lease, your deposit should be fully refunded. "Normal wear and tear"—such as minor wall marks, gently worn carpet, or faded paint—cannot legally be deducted.

Getting Your Security Deposit Back

After you move out, your landlord has 14 business days to return your deposit or provide a written list of deductions. If deductions are made, you must receive an itemized statement and your remaining balance. If the landlord misses this deadline, you may claim the full deposit.

Action Steps for Renters

• Provide your forwarding address in writing when you move out.
• Request your deposit return and any itemized list of charges within 14 business days after lease end.
• If you disagree with deductions, communicate in writing with your landlord and keep records.
• If unresolved, you may file a claim in the appropriate court or seek help from the Arizona Attorney General's Consumer Protection Unit.

Official Forms and Legal Resources

• Arizona Residential Rental Agreement and Move-In/Move-Out Checklist (Arizona Association of Realtors - Sample): See official forms. Use the checklist at the beginning and end of your tenancy to document property condition and support any deposit claims.
• Consumer Complaint Form (Attorney General’s Office): Arizona Consumer Complaint Form. Use this if you believe your landlord is wrongfully withholding your deposit. File online or by mail.

Residential tenancy issues are regulated by the Arizona Attorney General’s Civil Rights Division (for discrimination/fair housing) and Arizona’s civil courts (for deposit disputes).

For all rules on deposits and tenant protections, see the Arizona Revised Statutes Title 33, Chapters 10 and 12.

Frequently Asked Questions

1. How much can my landlord charge for a security deposit in Arizona?
   By law, landlords can require no more than one and one-half months’ rent for all refundable security deposits combined.
2. Can my landlord keep my deposit for normal wear and tear?
   No. Arizona law does not allow deposit deductions for normal wear and tear—only for damage or unpaid rent beyond that.
3. What should I do if my landlord won’t return my deposit?
   First, request your deposit in writing. If not resolved, you can file a claim in Small Claims Court or submit a complaint to the Arizona Attorney General's Consumer Protection Unit.
4. Are nonrefundable fees counted as part of the legal deposit limit?
   No. Nonrefundable fees (like cleaning) must be clearly listed in your lease. Only refundable deposits are capped by law.
5. Who enforces deposit rules for Arizona renters?
   The Arizona civil courts handle security deposit disputes. For discrimination or fair housing violations, contact the Attorney General’s Civil Rights Division.

Conclusion: Key Takeaways for Arizona Renters

• Security and “damage” deposits are the same under Arizona law and capped at 1.5 months’ rent.
• Get a detailed, written move-in/move-out checklist and take photos for your records.
• Landlords have 14 business days after move-out to return your deposit or send an itemized statement. Always give your forwarding address in writing.

By following these steps and knowing your rights, you can better protect your deposit and resolve disputes quickly.

Need Help? Resources for Renters

• Arizona Attorney General’s Consumer Protection Unit – File complaints or ask about deposit laws.
• Arizona Courts Self-Service Center – Small Claims – Find forms and guides to file a deposit claim.
• Arizona Department of Housing – Renter resources and landlord-tenant information.
• Arizona Residential Landlord and Tenant Act (A.R.S. 33-1301 et seq.) – Full legal text for your rights and responsibilities.

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1. Arizona Revised Statutes § 33-1321: Security Deposits
2. Arizona Revised Statutes Title 33: Property
3. Arizona Judicial Branch – Small Claims Courts
4. Arizona Attorney General’s Civil Rights Division
5. Arizona Department of Housing

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