Arizona Security Deposit Demand Letter

Introduction

Key Things to Know

1. 1

   A security deposit demand letter is a written demand an Arizona tenant sends a former landlord to recover a deposit withheld past the state deadline, before taking the landlord to small claims court.

2. 2

   The landlord must provide an itemized list of all deductions, together with any amount due, within 14 days excluding Saturdays, Sundays, and legal holidays after the tenancy ends, possession is returned, and the tenant demands the deposit (Ariz. Rev. Stat. Section 33-1321(D)).

3. 3

   The tenant's written demand is one of the three events that start the 14-day clock, so sending this letter is part of what triggers the landlord's duty to account (Ariz. Rev. Stat. Section 33-1321(D)).

4. 4

   If the landlord fails to comply, the tenant may recover the property and money due plus damages equal to twice the amount wrongfully withheld (Ariz. Rev. Stat. Section 33-1321(E)); the statute ties this penalty to the failure to comply, not to proof of bad faith.

5. 5

   Any fee or deposit is refundable unless the landlord stated its nonrefundable purpose in writing; the purpose of all nonrefundable fees or deposits must be stated in writing (Ariz. Rev. Stat. Section 33-1321(B)).

6. 6

   A landlord may not demand or receive security, including prepaid rent, of more than one and one-half months' rent (Ariz. Rev. Stat. Section 33-1321(A)).

7. 7

   If the demand is ignored, an Arizona tenant can sue in small claims court for up to $5,000 (Ariz. Rev. Stat. Section 22-503); the deadline to sue on a written lease is six years (Ariz. Rev. Stat. Section 12-548).

Arizona Requirements for Security Deposit Demand Letter

• 14 Business-Day Itemized Accounting

  In Arizona the landlord must provide an itemized list of all deductions, together with any amount due the tenant, within 14 days excluding Saturdays, Sundays, and legal holidays after the tenancy ends, possession is returned, and the tenant demands the deposit (Ariz. Rev. Stat. Section 33-1321(D)). Your demand letter should note that this period has run.

• Tenant Demand Triggers the Clock

  The 14-day accounting period does not begin until the tenancy has terminated, possession has been delivered, and the tenant has demanded the deposit (Ariz. Rev. Stat. Section 33-1321(D)). Sending a dated written demand with your forwarding address is part of what starts the landlord's deadline, so keep proof of delivery.

• Damages of Twice the Amount Wrongfully Withheld

  If the landlord fails to comply with the accounting duty, the tenant may recover the property and money due plus damages equal to twice the amount wrongfully withheld (Ariz. Rev. Stat. Section 33-1321(E)). The statute conditions this penalty on the failure to comply, not on proof of bad faith.

• Itemized List of All Deductions Required

  A landlord who keeps any part of the deposit must give the tenant an itemized list of all deductions together with the amount due and payable to the tenant (Ariz. Rev. Stat. Section 33-1321(D)). Section 33-1321 sets no dollar threshold that excuses itemizing, so a missing or vague accounting can be disputed.

• Nonrefundable Fees Must Be Stated in Writing

  The purpose of all nonrefundable fees or deposits must be stated in writing by the landlord; any fee or deposit not designated as nonrefundable is refundable (Ariz. Rev. Stat. Section 33-1321(B)). A charge labeled nonrefundable without a written purpose remains refundable and can be demanded.

• Security Capped at One and One-Half Months' Rent

  A landlord may not demand or receive security, however denominated and including prepaid rent, of more than one and one-half months' rent (Ariz. Rev. Stat. Section 33-1321(A)). Amounts collected above that cap can be raised in your demand.

• Send With Proof of Delivery and a Forwarding Address

  Send the demand to the landlord using a trackable method such as certified mail with return receipt, and provide your forwarding address. Because the tenant's demand helps start the statutory period, keep a copy of the letter and the delivery record for a later small claims filing.

• Small Claims Limit and Deadline to Sue

  If the demand is ignored, a party may sue in Arizona small claims court for up to $5,000, exclusive of interest and costs (Ariz. Rev. Stat. Section 22-503). The deadline to sue on a written lease is six years (Ariz. Rev. Stat. Section 12-548), though filing promptly after the demand is the practical course.