Security deposit interest in Arizona
No — Arizona does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Arizona sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
14 days after the tenancy ends.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Arizona's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Ariz. Rev. Stat. Sec. 33-1321 (Arizona Residential Landlord and Tenant Act). Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Arizona law actually say?
Arizona does not require landlords to pay interest on residential security deposits. The statute contains no interest provision and imposes no escrow or separate account requirement. Deposits, including any prepaid rent, are capped at one and one-half months' rent, though the tenant may voluntarily pay more.
All fees and deposits must be stated in writing and designated as refundable or non-refundable, and any non-refundable fee must be clearly labelled as such; anything not designated non-refundable is treated as refundable. On termination the landlord must provide an itemised written list of deductions and return the balance within 14 days, excluding Saturdays, Sundays and holidays, of termination and delivery of possession or the tenant's request, whichever is later. The tenant has the right to be present at the move-out inspection and must be notified of that right.
If the tenant does not demand return within five years of termination, the deposit becomes the landlord's property.
What if your landlord does not comply?
No interest obligation, so no interest penalty. A landlord who fails to comply with the return requirements is liable for the amount wrongfully withheld plus damages of twice that amount. If deductions exceed the deposit, the landlord may recover the balance, and either party may recover reasonable costs and attorney fees.