Arizona caps security deposits at one and one-half month's rent. After the tenancy ends and the tenant requests it, a landlord has 14 days (excluding weekends and legal holidays) to return the deposit with an itemized list of deductions. Wrongful retention exposes the landlord to damages of twice the amount withheld.
Under Ariz. Rev. Stat. § 33-1321, a landlord may not demand or receive security, including prepaid rent, exceeding "one and one-half month's rent," though a tenant may voluntarily prepay more. All nonrefundable fees must be designated in writing; any fee not labeled nonrefundable is refundable. On request, the landlord must notify the tenant of the move-out inspection. Within fourteen days, excluding Saturdays, Sundays, and legal holidays, after termination of the tenancy, delivery of possession, and demand by the tenant, the landlord must provide an itemized list of all deductions plus any balance owed, mailed by first-class mail to the tenant's last known address. Allowed deductions cover unpaid rent and damage beyond normal wear and tear.
If a landlord wrongfully retains a deposit, A.R.S. § 33-1321(D)–(E) lets the tenant recover the property and money due plus damages equal to twice the amount wrongfully withheld. A landlord who complies in good faith with the statute is not liable for these double damages.
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