How much can a landlord deduct from a security deposit in Arizona?
Short answer: you may apply the deposit to rent owed and to charges in the signed lease, including damage from the tenant breaking their duty not to deliberately or negligently damage the unit. There's no fixed dollar cap on deductions. Within 14 days, excluding Saturdays, Sundays and legal holidays, after the tenancy ends, the tenant returns the keys and moves out, and the tenant demands the deposit, send an itemized list of all deductions with any balance due. Mail both by first class mail to the tenant's last known residence unless the tenant arranged otherwise in writing (A.R.S. § 33-1321(D)).
The deposit, including prepaid rent, is capped at 1½ months' rent (§ 33-1321(A)). If you get it wrong, the tenant may recover what's due plus damages equal to twice the amount wrongfully withheld (§ 33-1321(E)).
Do the math in 2 minutes: the free Kitwright Security Deposit Deduction Calculator prorates replaced items for wear and tear, totals your deductions, estimates the Arizona 14-business-day date (it skips weekends but not holidays, so push the date out for any legal holiday), and prints an itemized statement. No sign-up, and nothing you type leaves your browser.
Who this guide covers
The Arizona Residential Landlord and Tenant Act applies to the rental of dwelling units. It doesn't cover some arrangements, including transient occupancy in a hotel, motel or recreational lodging, occupancy under a contract of sale, an employee-manager whose housing depends on the job, and public housing (§ 33-1308). Mobile home park spaces fall under a separate act; the Arizona Department of Housing explains which act applies. A lease can't make the tenant waive rights or remedies under the Act (§ 33-1315(A)(1)).
How much deposit you can collect
- Cap: you "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" (§ 33-1321(A)). A tenant may still choose, voluntarily, to pay more than 1½ months' rent in advance.
- What counts as security: "money or property given to assure payment or performance under a rental agreement." It does not include "a reasonable charge for redecorating or cleaning" (§ 33-1310(15)).
- Nonrefundable fees: state the purpose of every nonrefundable fee or deposit in writing. "Any fee or deposit not designated as nonrefundable is refundable" (§ 33-1321(B)). At the end of the tenancy, all refundable deposits go back to the tenant under § 33-1321 (§ 33-1321(G)).
Move-in paperwork and the move-out inspection
At move-in, § 33-1321(C) requires you to give the tenant:
- a signed copy of the lease (a written lease must have all blank spaces completed, § 33-1322(E));
- a move-in form for listing any existing damage to the unit; and
- written notice that the tenant may be present at the move-out inspection.
If the tenant asks, you must tell them when your move-out inspection will happen. The exception: if the tenant is being evicted for a material and irreparable breach and you have reasonable cause to fear violence or intimidation, you don't have to do a joint move-out inspection. Separately, at or before the tenancy starts, tell the tenant in writing that the Act is available on the Arizona Department of Housing's website (§ 33-1322(B)).
The completed move-in form is your best baseline. Damage already listed on it is strong evidence it was there before this tenant, so don't charge for it.
What you can deduct
On termination, the deposit and any prepaid rent "may be applied to the payment of all rent, and subject to a landlord's duty to mitigate, all charges as specified in the signed lease agreement, or as provided in this chapter, including the amount of damages which the landlord has suffered by reason of the tenant's noncompliance with section 33-1341" (§ 33-1321(D)).
- Unpaid rent.
- Charges the signed lease specifies, such as re-keying if keys aren't returned, if your lease says so. Note the words "subject to a landlord's duty to mitigate."
- Damage from the tenant breaking § 33-1341. Among other duties, the tenant must keep their part of the premises "as clean and safe as the condition of the premises permit" and must "not deliberately or negligently destroy, deface, damage, impair or remove any part of the premises or knowingly permit any person to do so" (§ 33-1341). The tenant can also be held responsible for guests' lease violations in some cases (§ 33-1368(F)).
The Act doesn't publish a list of deductible items or a proration formula. Ordinary aging of paint and carpet isn't damage the tenant deliberately or negligently caused, so leave it off the list. Tie every line to the lease or to § 33-1341, and keep the invoice, receipt and photos.
The 14-business-day itemized list
- What starts the clock: all three of termination of the tenancy, delivery of possession and demand by the tenant (§ 33-1321(D)). "Delivery of possession" means "returning dwelling unit keys to the landlord and vacating the premises" (§ 33-1310(3)). The statute doesn't say the demand must be in writing, but a dated written request is easy to prove.
- Deadline: within 14 days, excluding Saturdays, Sundays or other legal holidays. Arizona's legal holidays are listed in A.R.S. § 1-301 and include Veterans' Day (Nov 11) and Thanksgiving.
- What you send: "an itemized list of all deductions together with the amount due and payable to the tenant, if any."
- How you send it: unless the tenant made other arrangements in writing, mail the itemized list and any amount due by first class mail to the tenant's last known place of residence.
- 60-day dispute window: if the tenant doesn't dispute the deductions or the amount due within 60 days after the list and amount are mailed as the statute prescribes, the amount on the list "is deemed valid and final and any further claims of the tenant are waived."
Make the statement: enter each line in the free calculator, then print the itemized statement and mail it first class with the balance. Keep a copy, the mailing date and copies of invoices, estimates and photos.
Hypothetical worked example
Hypothetical example (made-up numbers for illustration). A tenant pays $1,600 a month with a $2,400 deposit (exactly the 1½-month cap). The signed lease makes the tenant responsible for re-keying if keys aren't returned. The lease ends Saturday, October 31, 2026. That day the tenant moves out, hands back one of three keys and gives you a written demand for the deposit with a forwarding address. No rent is owed. You compare the move-out condition with the signed move-in form.
| Item | How it's figured | Amount |
|---|---|---|
| Security deposit held | From the lease | $2,400.00 |
| Bedroom carpet ruined by pet urine, not on the move-in form (4 years old, expected to last 8, $1,000 to replace with similar quality) | Charge only the life it had left: $1,000 × (8 − 4) ÷ 8 | − $500.00 |
| Patching and repainting a wall with many large anchor holes ($225 painter's invoice) | Invoice amount | − $225.00 |
| Two keys not returned; re-key per the lease ($85 locksmith receipt) | Receipt amount | − $85.00 |
| Paint faded and lightly scuffed in the living room | Ordinary aging, not deliberate or negligent damage: not claimed | $0.00 |
| Balance due to the tenant ($2,400 − $810) | $1,590.00 | |
Counting 14 days and skipping Saturdays, Sundays and Veterans' Day (Wednesday, November 11), by our count the itemized list and the $1,590 are due by Friday, November 20, 2026. Mail them first class to the forwarding address the tenant gave. Don't cut it close: if you're unsure about a holiday, send it earlier. Arizona's statute doesn't prescribe a carpet-proration formula. Charging only remaining useful life is one way to keep a claim to the real cost of the damage. Keep the move-in form, invoice, receipt, photos and proof of the mailing date with your copy.
Run your own numbers: the free calculator uses the same proration approach and works out return-by dates for Arizona and 50 other jurisdictions (49 states + DC). For Arizona it skips weekends only, so it would show November 19 here. Add a day for each legal holiday in the window.
Penalties and disputes
- Twice the amount wrongfully withheld (§ 33-1321(E)): if you don't comply with § 33-1321(D), the tenant may recover the property and money due "together with damages in an amount equal to twice the amount wrongfully withheld." In the hypothetical, wrongly keeping $300 could mean returning the $300 plus $600 in damages.
- Other damages still possible (§ 33-1321(F)): the section doesn't stop either side from recovering other damages under the Act. If damage costs more than the deposit, § 33-1368(C) lets a landlord recover reasonable damages from the tenant's noncompliance, court costs, reasonable attorney fees and all quantifiable damage to the premises (§ 33-1368(C)).
- Prohibited lease clauses (§ 33-1315(B)): a clause waiving rights under the Act is unenforceable. If a landlord deliberately uses a lease with provisions known to be prohibited, the tenant may recover actual damages and up to two months' periodic rent.
- Where disputes go: the small claims division of the justice court hears civil claims that don't exceed $5,000, exclusive of interest and costs (A.R.S. § 22-503(A)). Justice courts hear civil actions of $10,000 or less, exclusive of interest, costs and awarded attorney fees when authorized by law (§ 22-201(B)). The Arizona Judicial Branch notes that small claims parties may use attorneys only if both agree, and there's no right to appeal or to a jury. A party who objects at least ten days before the hearing can move the case to justice court (§ 22-504(A)).
- No state enforcement agency: the Arizona Department of Housing says no state agency currently enforces the Act and landlord-tenant disputes are generally private matters.
Abandoned units and selling the property
- Abandonment (§ 33-1370): after you send a notice of abandonment by certified mail and post it on the door for five days, you may retake the unit if no personal property remains. Then the deposit "is forfeited and shall be applied to the payment of any accrued rent and other reasonable costs incurred by the landlord by reason of the tenant's abandonment" (§ 33-1370(B)). "Abandonment" has a specific definition tied to days absent and days rent is unpaid (§ 33-1370(J)). Read it before you rely on it, and make reasonable efforts to re-rent (§ 33-1370(C)).
- Selling: whoever holds the landlord's interest when the tenancy ends is bound by § 33-1321 (§ 33-1321(H)). If you buy a rental, get the deposit records and money at closing.
Local rules
This guide covers Arizona state law. Your lease and any local requirements that apply to your property also matter. The Arizona Department of Housing offers the Residential Landlord and Tenant Act as a free download. Rely on the current statute sections above for exact deadlines.
Quick checklist before you return the deposit
- Confirm the tenancy has ended, the tenant returned the keys and moved out, and the date the tenant demanded the deposit.
- Count 14 days, skipping Saturdays, Sundays and Arizona legal holidays (A.R.S. § 1-301).
- Compare the move-out condition with the signed move-in form. Cut anything that was already listed or is ordinary aging.
- List each deduction separately, tied to the lease or to § 33-1341 damage, with invoices, receipts and photos.
- Refund every deposit or fee not designated nonrefundable in writing.
- Mail the itemized list and the balance first class to the tenant's last known residence (or as the tenant arranged in writing), and note the mailing date.
For your year-end records, the free Year-End Landlord Ops Checklist (Excel) includes a deposits section.
Free: Year-End Landlord Ops Checklist (Excel). One workbook for year-end books, deposits and a CPA packing list. Pay $0 (or name a price if you like).
Need the full deposit worksheet?
The Deposit Kit is Excel worksheets for move-out deductions. Code FIRSTKIT is 40% off through Nov 30 (apply the code on Gumroad if it is not already filled in).
Guides for other states
- California: how much can a landlord deduct from a security deposit? (21-day itemized statement, receipts and photos, 2026 changes)
- Florida: how much can a landlord deduct from a security deposit? (15-day full return or 30-day claim notice, tenant 15-day objection, itemized claim)
- Georgia: how much can a landlord deduct from a security deposit? (30-day return after possession, move-in/out damage lists, two-month cap, escrow or bond, treble damages for wrongful withholding)
- Illinois: how much can a landlord deduct from a security deposit? (30-day itemized statement, 45-day full return if none, double-deposit penalty)
- New Jersey: how much can a landlord deduct from a security deposit? (30-day itemized return by personal delivery or registered/certified mail, 1.5-month cap, interest-bearing NJ account with written notice, double damages)
- New York: how much can a landlord deduct from a security deposit? (14-day refund, one-month cap, itemized list, forfeiture if late)
- North Carolina: how much can a landlord deduct from a security deposit? (30-day itemized accounting (60-day final if needed), statutory deposit caps, trust account or bond, willful noncompliance voids retention)
- Ohio: how much can a landlord deduct from a security deposit? (30-day itemized written notice + refund, written forwarding address, wrongful withholding doubled + attorney fees)
- Pennsylvania: how much can a landlord deduct from a security deposit? (30-day written damages list + refund, forfeit if late, double excess withheld)
- Texas: how much can a landlord deduct from a security deposit? (30-day refund, forwarding address, itemized list, bad-faith penalties)
- Washington: how much can a landlord deduct from a security deposit? (move-in checklist required, 30-day full and specific statement, up to 2x deposit)
For every other state's return deadline and statute, see the 51-jurisdiction table in the free deposit calculator.
Also for landlords: Do I need to send a 1099 to my contractor? (IRS rules for 2026 payments)
FAQ
How much can a landlord deduct from a security deposit in Arizona?
A.R.S. § 33-1321(D) lets you apply the deposit and any prepaid rent to all rent owed and, subject to your duty to mitigate, to all charges specified in the signed lease or provided in the Residential Landlord and Tenant Act, including damages you suffered because the tenant didn't meet the tenant duties in § 33-1341 (for example, deliberately or negligently damaging the premises). There's no fixed dollar cap on deductions. Each one has to be on the itemized list.
How long does an Arizona landlord have to return a security deposit?
Within 14 days, excluding Saturdays, Sundays and other legal holidays, after the tenancy ends, the tenant delivers possession and the tenant demands the deposit. By then you must provide an itemized list of all deductions with the amount due to the tenant, if any (A.R.S. § 33-1321(D)). 'Delivery of possession' means returning the keys and vacating (§ 33-1310(3)).
How does an Arizona landlord have to send the deposit and itemized list?
Unless the tenant has made other arrangements in writing, mail the itemized list and any amount due by first class mail to the tenant's last known place of residence (A.R.S. § 33-1321(D)).
Is there a cap on Arizona security deposits?
Yes. A landlord may not demand or receive security, however denominated, including prepaid rent, of more than one and one-half month's rent. A tenant may still voluntarily pay more than one and one-half month's rent in advance (A.R.S. § 33-1321(A)).
Are nonrefundable fees allowed in Arizona?
The statute requires the landlord to state the purpose of every nonrefundable fee or deposit in writing. Any fee or deposit not designated as nonrefundable is refundable (A.R.S. § 33-1321(B)). The Act's definition of security also excludes a reasonable charge for redecorating or cleaning (§ 33-1310(15)).
Does an Arizona landlord have to do a move-out inspection with the tenant?
At move-in you must give the tenant a signed copy of the lease, a move-in form for listing existing damage, and written notice that the tenant may be present at the move-out inspection. If the tenant asks, you must tell them when the move-out inspection will happen. There's an exception for a tenant evicted for a material and irreparable breach when you have reasonable cause to fear violence or intimidation (A.R.S. § 33-1321(C)).
What happens if an Arizona landlord wrongfully withholds the deposit?
If the landlord doesn't comply with § 33-1321(D), the tenant may recover the property and money due, together with damages equal to twice the amount wrongfully withheld (A.R.S. § 33-1321(E)).
How long does an Arizona tenant have to dispute deductions?
If the tenant doesn't dispute the deductions or the amount due within 60 days after the itemized list and amount due are mailed as the statute prescribes, the amount on the list is deemed valid and final and further claims are waived (A.R.S. § 33-1321(D)).
Where do Arizona deposit disputes go?
The small claims division of the justice court hears civil claims that don't exceed $5,000, exclusive of interest and costs (A.R.S. § 22-503(A)). Justice courts hear civil actions of $10,000 or less, exclusive of interest, costs and awarded attorney fees when authorized by law (§ 22-201(B)). The Arizona Judicial Branch notes that small claims decisions can't be appealed and attorneys are allowed only if both parties agree.
Is this legal advice?
No. This page is general information based on the current text of A.R.S. § 33-1321 and related sections on azleg.gov, the Arizona Judicial Branch small claims page and the Arizona Department of Housing, as of November 13, 2026. Read the statute or talk to an Arizona attorney before you withhold money.
Sources
- A.R.S. § 33-1321, Security deposits (cap, nonrefundable fees, move-in form and move-out inspection notice, deductions, 14-day itemized list, first-class mail, 60-day dispute window, twice-the-amount damages): azleg.gov
- A.R.S. § 33-1310, General definitions ("delivery of possession," "security"): azleg.gov
- A.R.S. §§ 33-1308 (exclusions), 33-1315 (prohibited lease provisions), 33-1322 (disclosure and written lease): § 33-1308, § 33-1315, § 33-1322 (azleg.gov)
- A.R.S. §§ 33-1341 (tenant to maintain dwelling unit), 33-1368 (tenant noncompliance; landlord damages), 33-1370 (abandonment): § 33-1341, § 33-1368, § 33-1370 (azleg.gov)
- A.R.S. § 1-301, Holidays enumerated: azleg.gov
- A.R.S. §§ 22-503 (small claims, $5,000), 22-201 (justice court, $10,000), 22-504 (transfer to justice court): § 22-503, § 22-201, § 22-504 (azleg.gov)
- Arizona Judicial Branch, Self-Service Center: Small Claims
- Arizona Department of Housing, Arizona Residential Landlord and Tenant Act