Set the deposit correctly
Under A.R.S. § 33-1321, an owner generally cannot demand security, including prepaid rent, above one and one-half months’ rent. A tenant may voluntarily prepay more. State the purpose of nonrefundable fees or deposits in writing; amounts not designated nonrefundable are refundable.
Document the starting condition
At move-in, provide the signed lease, a form for existing damage, and written notice of the tenant’s right to attend the move-out inspection. Date-stamped photographs and a room-by-room condition record can make later questions easier to resolve.
Track every timing trigger
The statute calls for an itemized deduction list and any refund within 14 days, excluding Saturdays, Sundays, and legal holidays, after tenancy termination, delivery of possession, and tenant demand. Unless the tenant makes other written arrangements, send them by first-class mail to the last known residence.
Support deductions
Tie deductions to permitted charges and actual documented conditions. Keep photographs, invoices, the lease, and delivery records together. Deposit disputes depend on the facts; this overview is general information, not a substitute for legal advice about a specific withholding or deadline.
Sources & further reading
General educational information. Requirements and individual circumstances can change; consult a qualified Arizona professional for property-specific advice.