Arizona security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
You’re not required to keep a tenant’s security deposit in a dedicated security deposit bank account in Arizona. But, as these funds are refundable, you should still keep them separate in a dedicated savings account.
{{ state }} security deposit
limits
The maximum security deposit in Arizona is 2 months’ rent, which is at par with the national average security deposit.
{{ state }} security deposit interest
State law security deposit rules mandate interest on security deposits in Arizona. The security deposit interest rate shouldn’t be less than 5%, and you can either pay it annually or compound it annually.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
2 months' rent
No security deposit escrow account required. But it’s best to keep deposits separate from other funds.
Unpaid rent, repairs, lease violations, and cleaning costs
14 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Arizona?
In Arizona, security deposit limit is 2 months’ rent. This total also includes any first and last month's rent. If you are renting out a mobile home space, you can charge more than 2 months’ rent.
Is interest required on tenant security deposits in Arizona?
Yes, in Arizona, security deposit interest is required even though you’re not legally required to keep funds in a landlord-tenant security deposit bank account in Arizona. The interest rate shouldn’t be less than 5% annually, and you can either pay the interest annually or compound it annually.
How should I issue a security deposit receipt to tenants in Arizona?
You’re not required to give tenants a receipt for a security deposit, but it’s still good practice. In your receipt, state the amount received, the date, and the interest rate.
How many days to return a security deposit in Arizona?
Once the lease ends, the tenant has moved out, you must return the tenant's security deposit in Arizona within 14 days, minus any deductions you make. If you make deductions, make sure to provide tenants with a written list of damages and the cost within the same time window.
What can a landlord deduct from a security deposit in Arizona?
Landlord rights security deposit rules allow you to charge unpaid rent, late fees, and physical damage that goes beyond "normal wear and tear." This applies whether you are renting out a house rental, apartment, or condo. If you fail to provide an itemized list of these deductions within the 14-day window, you could be liable for double damages—meaning the tenant could sue for twice the amount wrongfully withheld.
Can a security deposit be used for unpaid rent in Arizona?
Yes. You can use the funds to cover any rent the tenant still owes you at the end of the lease. You aren't required to hold these funds in a security deposit escrow account in Arizona, but make sure to give an itemized list showing the rent deduction.
Can landlords keep a security deposit for breaking a lease in Arizona?
Yes, landlords can use the landlord security deposit in Arizona to cover losses if the tenant breaks the lease early.
