Arizona security deposit rules.
The Arizona rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Ariz. Rev. Stat. § 33-1321 · Not legal advice
How much can be charged
Capped at 1.5 months of rent. The tenant may voluntarily pay more, but the lease must reflect the agreement in writing.
When it has to come back
14 business days (weekends and legal holidays excluded) after termination, delivery of possession and demand by the tenant. The itemised list and refund go to the tenant’s last known address unless agreed otherwise in writing.
Interest
No interest is required on residential security deposits.
Where the money has to sit
No segregation requirement, though best practice is to hold separately.
What catches operators out
- The 1.5× cap includes pre-paid rent and security combined.
- Tenant may recover the amount due plus damages equal to twice the amount wrongfully withheld. The statute has no attorney-fee provision.
What this looks like with Standby in Arizona.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Arizona law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Arizona. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.