Arizona Security Deposit Law & How to Get Your Deposit Back

‍If your landlord doesn’t return your security deposit, you may wonder when they should have returned it and how to get it back. 

Below is a comprehensive guide covering everything you need to know about Arizona security deposit law. The main code section that we will be reviewing is Arizona Revised Statute Section 33-1321. 

As one could imagine, landlords and tenants often disagree about what is considered “normal wear and tear,” and this is often what will be at issue if you sue your landlord in an Arizona small claims court. 

What is considered normal wear and tear will depend on how long you have lived at a property. For example, if you live at a property for 1 year, you are expected to have less wear and tear than if you live there for longer. A landlord is responsible for normal wear and tear as it is considered a cost of doing business (renting you the property) and cannot be deducted from your security deposit. 

The Arizona Housing Authority provides some helpful examples of what constitutes “normal wear and tear, meaning if it is on this list, a landlord shouldn’t deduct from the security deposit because it may be considered “normal wear and tear”:

• “Carpet cleaning after one year of tenant occupancy

• Cleaning blinds/window treatments after one year of tenant occupancy

• Washing walls and windows

• Touch-up painting

• Window screen repair

• Light bulb replacement

• Replacement of knobs and hinges on doors and cabinets

• Replacement of electrical light switches and plates

• Smoke detector battery replacement

• One time fumigation of unit

Kitchen:

• Drip plan replacement

• Replacement of stove rings

• Replacement of broiler pans

• Replacement of ice cube trays

• Replacement of small parts of appliances and fixtures that break during normal usage/wear and do not damage integrity of the appliance

• Appliance cleaning (unless excessively dirty)

Bathroom:

• Towel bar replacement

• Toilet seat and/or handle replacement

• Replacement of sink and bathtub handles and stoppers

• Caulking around tub or toilet.”

All of the above examples share that they are common fixes needed when living in a home and will be the landlord's responsibility to fix. 

Compare those examples to those when a tenant causes damage to the property beyond normal wear and tear. Again, the Arizona Housing Authority provides examples of what is considered more than normal wear and tear where a landlord could deduct from the security deposit:  

• “Burns/tears/excessive wear/permanent stains to carpets

• Damage to large appliances

• Broken windows

• Yellowing of walls from nicotine (if occupancy is less than 12 months)

• Broken or damaged cabinets

• Damage to floor vinyl

• Window screen replacement

• Excessive cleaning

• Door replacement

• Damaged door jambs and trim

• Gaping holes in walls or plaster

• Wall prep prior to painting to patch holes or remove nicotine

• Replacement of tenant-damaged smoke detectors

• Missing or bent shower rods

• Clogged or damaged toilet from improper use

• Fumigation of unit more than once”

The law requires a landlord to provide you with an itemized list of deductions to ensure transparency to the tenant and the ability to dispute specific charges.

A.R.S. § 33-1321 doesn’t say exactly how to “dispute deductions” to your security deposit.  Because of this, it’s a good idea for you to, at a minimum, dispute deductions to your security deposit in writing. Start by emailing your landlord; if this doesn’t work, send a formal demand letter to your landlord. 
Nevertheless, if you want to be safer, you should consider filing a small claims lawsuit within the 60-day deadline to “dispute deductions” to your security deposit. If your landlord returns your security deposit before the hearing, you could close (“dismiss”) your small claims lawsuit.  In Arizona, you can sue for $3,500 or less in small claims court. Otherwise, you need to sue in regular civil court.

Do not wait until the last minute to file a lawsuit. 

Preparing and filing your lawsuit takes time, and you don’t want to lose simply because you filed your lawsuit too late. You can close the lawsuit later if your landlord returns your security deposit before the hearing. 

Consider Sending a Demand Letter

Before suing in small claims court, consider sending a demand letter to your landlord as you get your small claims lawsuit ready. Sending a demand letter likely isn’t enough for the 60-day deadline, but it is an affordable and quick way to let your landlord know you are serious about getting your security deposit back. 

If your demand letter is strong enough, it may convince your landlord to return your security deposit without having to file your lawsuit or proceed with the hearing (you can close the lawsuit before the hearing if you have already filed). 

To have a strong demand letter, you’ll want to support your letter with details like:

• The specific dollar amount of your security deposit.

• Your move-out date.

• Pictures of the property when you moved in and out to compare any damages.

• A move-in checklist with pre-existing damage. 

• Include a date in the letter for the landlord to respond by. 

• Alert the landlord of your intention to file a claim in small claims court. 

A demand letter also shows the judge that you tried everything possible to resolve the dispute out of court. If you are short on time before the 60-day deadline to file the small claims lawsuit, file the lawsuit, then send the demand letter and let your landlord know that you will close the small claims lawsuit if they return your security deposit before the hearing. 

However, not all judges will agree to give you the amount wrongfully withheld from your security deposit amount plus “double” unless there is enough evidence to show that your landlord acted with bad intentions when deducting from your security deposit or not returning it at all. 

Here are two examples: 

• Your security deposit was $2,000. Your landlord returned $1,000, kept $1,000, and sent you an itemized statement of deductions for the $1,000. A judge determines that your landlord should have returned the full $2,000 security deposit. You would be owed $1,000 (the portion of your security deposit that wasn’t returned) plus $2,000 (additional damages), a total of $3,000.

• Your security deposit was $2,000. Your landlord didn’t return any portion of your security deposit. A judge determines that your landlord should have returned the full $2,000 security deposit. You would be owed $2,000 (your full security deposit), plus $4,000 (additional damages), a total of $6,000. 

While in Arizona, you can only sue for $3,500 or less in small claims court, it may be worth it than exploring regular civil court. Small claims courts are meant to be quicker and cheaper than suing in regular court, even if it means foregoing suing for the full amount that you are owed. 

Prepare Your Evidence

• Evidence that you provided your landlord with a forwarding address. Your landlord is required to send you an itemized list of deductions to your last known address. A.R.S. § 33-1321(D). If you didn’t provide them with the address where you moved, they were only required to send you the itemized statement to the address where you just moved from. If you have evidence that you provided your landlord with a new address, add this to your evidence. 

• Look for your move-in checklist. When you moved in, your landlord was required to give you a form with any existing damage. A.R.S. § 33-1321(C). They usually attach this form to your lease. If your landlord deducted for damages that existed before you moved in, you can use the move-in checklist to prove that the damage was already there before you moved in. 

• Evidence at move-in of notice regarding a move-out inspection. When you moved in, your landlord should have provided you a form with your right to be present at a move-out inspection. They usually attach this to your lease.  “On move in, a landlord shall furnish the tenant with… a written notification to the tenant that the tenant may be present at the move-out inspection.” A.R.S. § 33-1321(C)

• Evidence that your requested a move-out inspection. You have a right to request a move out inspection and be present at the move-out inspection, unless your landlord thinks you will be violent or you will intimidate them. If you have evidence that you requested a move-out inspection (for example, an email) and your landlord didn’t honor your request,, include that in your evidence. “On move in, a landlord shall furnish the tenant with… a written notification to the tenant that the tenant may be present at the move-out inspection. On request by the tenant, the landlord shall notify the tenant when the landlord's move-out inspection will occur. If the tenant is being evicted for a material and irreparable breach and the landlord has reasonable cause to fear violence or intimidation on the part of the tenant, the landlord has no obligation to conduct a joint move-out inspection with the tenant.” A.R.S. § 33-1321(C). 

• Any evidence from the move-out inspection. If your landlord conducted a move-out inspection and you took videos and pictures, include those in your evidence. These pictures and videos show the property's appearance when you moved out. If you have evidence of any comments made by your landlord during that move-out inspection, those would be especially helpful. 

• Pictures and videos. If you took pictures of the property before you moved in and pictures of the unit when you moved out. This will help the judge understand what damage may have already existed before you moved in. 

• A timeline of events. A timeline always makes a case very clear to a judge, especially in security deposit disputes where the dates and deadlines matter. You will want to include the date you moved out, the date of the 14-day deadline, and the 60-day deadline. 

• Evidence of a demand letter. If you sent your landlord a demand letter, this shows that you tried to give your landlord an opportunity to rethink their deductions from your security deposit, and they still failed to return it. 

• Request your move-in checklist. When you moved in, your landlord was required to give you a form with any existing damage. A.R.S. § 33-1321(C). If your landlord didn’t give this form to you, request it before you move out so you can review it and remind yourself of what damage existed before you moved in. You aren’t responsible for any damage that existed before you moved in. 

• Request a move-out inspection. You have a right to a move-out inspection and a right to be present at that move-out inspection (unless your landlord feels like you will be violent towards them). “On move in, a landlord shall furnish the tenant with… a written notification to the tenant that the tenant may be present at the move-out inspection. On request by the tenant, the landlord shall notify the tenant when the landlord's move-out inspection will occur. If the tenant is being evicted for a material and irreparable breach and the landlord has reasonable cause to fear violence or intimidation on the part of the tenant, the landlord has no obligation to conduct a joint move-out inspection with the tenant.” A.R.S. § 33-1321(C). 

• Take pictures and videos. Take as many pictures and videos as you can, this way you can use them as part of your evidence before you sue.