What can a landlord deduct from a security deposit in Arizona?

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What a landlord may deduct

Under Arizona's residential landlord-tenant law, on termination of the tenancy, a landlord may apply a security deposit (and prepaid rent) to the following:

1. Unpaid rent — payment of all rent due .
2. Charges specified in the signed lease — all charges as specified in the signed lease agreement, or as provided in the Residential Landlord and Tenant Act .
3. Damages from the tenant's noncompliance — the amount of damages the landlord suffered by reason of the tenant's noncompliance with section 33-1341, subject to the landlord's duty to mitigate .

Deposit cap

A landlord may not demand or receive security, however denominated (including prepaid rent), in an amount or value of more than one and one-half month's rent, although a tenant may voluntarily pay more than that amount in advance .

After move-out: itemization and timing

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 the tenant an itemized list of all deductions together with any amount due and payable to the tenant . Unless the tenant makes other written arrangements, the landlord must mail the itemized list and any amount due by first class mail to the tenant's last known place of residence . If the tenant does not dispute the deductions or the amount due within sixty days after the list is mailed, the amount set forth in the list is deemed valid and final and any further claims by the tenant are waived .

Tenant's remedy for noncompliance

If the landlord fails to comply with these itemization-and-return requirements, the tenant may recover the money due together with damages equal to twice the amount wrongfully withheld .