Arizona Property Management Laws

Understanding Arizona's property management laws is crucial for landlords, property managers, owners, and investors. The complexity of these laws can often be overwhelming, particularly for those managing properties across multiple states, given the variations in legislation from one state to another.

This guide aims to serve as a handy resource, offering a broad overview of the state laws applicable in Arizona. It highlights relevant statutes, enabling you to delve deeper into each area of interest. Here, you will find guidance on the dos and don'ts of property management in Arizona, from tenant selection and property maintenance to fee collection.

By equipping yourself with this knowledge, you can ensure that your property management practices are in full compliance with Arizona's legal framework, thereby avoiding potential legal pitfalls and fostering a fair, professional relationship with your tenants.

Arizona landlord, tenant and property management laws include: 

• Arizona landlords can charge application fees without a specified limit, but discrimination in the rental process is strictly regulated.
• The maximum security deposit that can be charged is limited to one-and-a-half month's rent.
• Landlords have 14 business days post-tenancy termination to return the security deposit, along with an itemized list of deductions.
• Arizona rental agreements allow for flexibility in lease terms, with rent typically due at the start of each month.
• Landlords can evict tenants for material and irreparable breaches without needing to give notice for non-payment of rent.
• Landlords in Arizona can raise rent with a minimum of 30 days' written notice.
• Landlords are legally obligated to disclose complete ownership information upon the sale or transfer of a property.
• Landlords are required to give a minimum of two days' notice before entering a tenant's premises.
• The property must be kept habitable, with all utilities maintained in good and safe working order.
• Retaliatory actions by landlords are prohibited.
• Landlords are legally obliged to adhere to building codes and ensure that the property remains in a habitable condition.

Arizona Rental Application Regulations

In Arizona, landlords are permitted to charge application fees to potential tenants without a specified limit, ensuring the process's cost can be covered. However, discrimination in the rental process is strictly regulated:

• Discrimination based on family status, particularly against those with children, is considered a petty offense, except in designated housing for older persons as defined in section 41-1491.04.
• Landlords have the right to set occupancy limits, generally allowing two persons per bedroom, to manage property safety and resources efficiently (33-1317).

This framework aims to balance the financial aspects of property management with the need to ensure fair and equitable treatment of all potential tenants.

Arizona Security Deposit Guidelines

In Arizona, landlords are permitted to request move-in fees including the first and last month's rent along with the security deposit, provided the total does not exceed one-and-a-half month's rent. Tenants also have the option to pay more in advance if they choose (33-1321).

Key points regarding security deposits in Arizona include:

• Security Deposit Cap: The maximum security deposit that can be charged is limited to one-and-a-half month's rent (33-1321).
• Holding Security Deposits: Arizona law does not prescribe a specific method for holding security deposits during tenancy (33-1321).
• Return of Security Deposit: Landlords have 14 business days post-tenancy termination to return the security deposit, along with an itemized list of deductions, if any, to the tenant's last known address or as otherwise agreed (33-1321).
• Deductions from Security Deposit: Deductions can be made for damages beyond normal wear and tear, lease breaches, and unpaid rent, with specifics to be outlined in the lease agreement (33-1321).
• Penalty for Non-return: Tenants may seek twice the amount of the deposit that was wrongfully withheld if the landlord fails to return the security deposit as required (33-1321).

These regulations aim to protect both landlords and tenants, ensuring that security deposits are handled fairly and transparently throughout the rental agreement period.

Arizona Leases and Lease Termination Overview

Arizona's rental agreements allow for flexibility in lease terms, as long as they don't conflict with chapter 33-1314. Rent is typically due at the start of each month in equal installments, with daily calculations applied unless agreed otherwise.

Key aspects of leases and lease termination in Arizona include:

• Lease Violations: Landlords have the right to repossess the property if a tenant is in arrears for five days or more. They may also secure unpaid rent by placing a lien on the tenant’s personal property within the premises (33-361), with the option to seize property after 60 days as per section 33-1023.
• Month-to-Month Termination Notice: At least 10 days’ notice is required to terminate a month-to-month lease (33-341).
• Termination without Penalty: Tenants may terminate leases without penalty under specific conditions, such as being victims of domestic violence, entering active military duty, or at the lease's conclusion. For month-to-month agreements, a 10-day notice is necessary, while semi-monthly tenants must provide five days’ notice (33-341).
• Service Member Termination: Service members must give written notice along with military orders, ideally 30 days in advance, to terminate a lease under federal law (Servicemembers Civil Relief Act).
• Domestic Violence Termination: Victims can terminate leases early without penalty by providing written notice, a protective order, or a police report (33-1218).
• Eviction Procedures: Landlords can evict tenants for material and irreparable breaches without needing to give notice for non-payment of rent (33-341 and 33-1321).
• Property Changes Resulting in Termination: No specific state laws dictate notice periods for property changes that lead to tenancy termination, though local regulations may apply.

Arizona Rent and Late Fees Regulations

Landlords in Arizona can raise rent upon signing a new lease or within a month-to-month contract with a minimum of 30 days' written notice. No state restrictions on the maximum rent charge, though local jurisdictions might impose limits.

Arizona does not mandate a state-wide grace period for late rent payments; such policies may be determined by local laws. Late fees must be explicitly stated in the lease agreement and must be reasonable, aligning with the principle that fees should not be punitive but rather compensate for the late payment's impact.

Arizona Legally Required Disclosures

Under the Arizona Residential Landlord and Tenant Act, landlords are legally obligated to disclose complete ownership information upon the sale or transfer of a property. This includes tenant security deposit details, tenant files, and other relevant documents (33-1330). If the property is facing foreclosure, landlords must inform tenants of the sale time and date, and notify them within five business days of the sale (33-1331). Failure to do so could result in the tenant seeking damages and injunctive relief.

Landlords who are non-residents of the state can appoint an agent to handle these disclosures. In the absence of such an agent, the secretary of state will serve or receive the disclosures as per section 33-1322.

Regarding mold and lead paint, there are no specific state laws. However, local county, city, or regional laws may apply. In line with the Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and Section 1018, landlords must disclose known information on lead-based paint and hazards before leasing or selling most homes built before 1978. 

Arizona Laws about Landlord Responsibilities

Landlords are required by law to give a minimum of two days' notice before entering a tenant's premises, and can only do so at reasonable times unless there's an emergency or a maintenance request from the tenant (A.R.S. § 33-1343). Unlawful entry can lead to a tenant seeking injunctive relief (33-1376).

The property must be kept habitable, with all electrical, sanitary, plumbing, ventilating, air-conditioning and heating devices, appliances, and elevators maintained in good and safe working order (13-1324). Essential utilities such as running water, reasonable amounts of hot running water, heat, and air-conditioning must be provided and maintained by the landlord, along with appropriate trash receptacles and arrangements for waste disposal (33-1324, 33-1364).

While there are no specific state laws regarding the provision of amenities or certificates of inspection, local laws may apply. Landlords are responsible for providing locks and keys, which should be returned upon the termination of tenancy (33-1314).

Retaliatory actions by landlords are prohibited (33-1381). This includes rent increases, service decreases, threats, or possession actions in retaliation for tenant complaints about housing code violations, violation of section 33-1324, enforcement of wage-price stabilization act, or membership in a tenants’ union. 

Arizona Property Maintenance and Repair Laws

Landlords are legally obliged to adhere to building codes and ensure that the property remains in a habitable condition. The timeframe for repairs is not specified at state level but may be governed by local laws. Tenants are only responsible for maintenance if it is stipulated in the lease and does not infringe upon the landlord's duties or other tenants' rights. In cases where tenants cause damage, local laws will determine if the landlord is responsible for repairs.

If a landlord unlawfully removes a tenant or interrupts utilities, the tenant is entitled to recover up to two months' rent or double the actual damages. Inspections to identify substandard or dangerous conditions can be requested if the property owner fails to comply with section 33-1902 or if the property is identified as a slum, with the owner bearing the cost.

While state laws do not specify if tenants can deduct repair costs from rent, local laws may permit this. In the case of mobile home parks, landlords are required to assist with relocation within 100 miles, up to a cost of $7,500 for a single-section home or $12,500 for a multi-section home. For further information on Arizona's rental laws, additional resources are available. 

Bottom Line

Understanding Arizona's property management laws is crucial for anyone involved in property management in the state. These laws, which cover everything from tenant selection and property maintenance to fee collection, aim to protect both landlords and tenants. By familiarizing yourself with these laws, you can ensure your property management practices are in full compliance with Arizona's legal framework, thereby avoiding potential legal pitfalls and fostering a fair, professional relationship with your tenants.