SECURITY DEPOSIT DEMAND LETTER

STATE OF ARIZONA

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Arizona law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable statutory penalties, damages, and attorney's fees.

I. ARIZONA LEGAL FRAMEWORK

A. Governing Law

Security deposits in Arizona are governed by the Arizona Residential Landlord and Tenant Act, Ariz. Rev. Stat. Section 33-1301 et seq., specifically Section 33-1321.

B. Security Deposit Limits

Under Ariz. Rev. Stat. Section 33-1321(A), a landlord may not demand or receive a security deposit in excess of one and one-half months' rent. This includes all deposits, regardless of name or purpose, except:
- Nonrefundable cleaning fees (if specifically designated in the rental agreement)
- Nonrefundable pet deposits

C. Return Deadline

Pursuant to Ariz. Rev. Stat. Section 33-1321(D), a landlord must return the security deposit within fourteen (14) business days after:
1. Termination of the tenancy; AND
2. Delivery of possession by the tenant

The landlord must provide an itemized statement of deductions along with any refund.

D. Separate Account Requirement

Arizona law does not require that security deposits be held in a separate, interest-bearing account. No interest is due to tenants on their deposits.

E. Required Itemization

Under Ariz. Rev. Stat. Section 33-1321(D), the landlord must provide a written itemized statement accounting for any amounts retained, specifying the nature of the damage and the cost of repair.

F. Permissible Deductions

Under Ariz. Rev. Stat. Section 33-1321(A), a landlord may retain from the security deposit only amounts for:
- Accrued rent, including rent due for early termination
- Damages to the premises beyond reasonable wear and tear
- Cleaning costs to restore the premises to move-in condition
- Unpaid utilities, if provided by the landlord

G. Pre-Move-Out Inspection

Arizona law allows tenants to request a move-out inspection. The landlord must provide notice of any intended deductions, giving the tenant an opportunity to remedy issues.

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email

Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered

C. Condition of Premises at Move-Out

Our Client left the premises in the following condition:

[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.

[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].

[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.

[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.

[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.

III. LANDLORD'S VIOLATIONS

You have violated Arizona law in the following ways:

[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 14 business day period required under Ariz. Rev. Stat. Section 33-1321(D).

[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.

[ ] Excessive Security Deposit: You collected a security deposit exceeding one and one-half months' rent in violation of Ariz. Rev. Stat. Section 33-1321(A).

[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]

[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]

IV. NORMAL WEAR AND TEAR

Arizona law distinguishes between "damage" for which a tenant may be charged and "reasonable wear and tear" for which a tenant may not be charged. Reasonable wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.

The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:

[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on tile or hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Sun damage to window coverings (common in Arizona)
[ ] HVAC filter replacement
[ ] Other: [SPECIFY]

V. DAMAGES AND PENALTIES

A. Return of Security Deposit

B. Statutory Penalties - Wrongful Withholding

Under Ariz. Rev. Stat. Section 33-1321(E), if a landlord wrongfully withholds a security deposit, the tenant may recover:

• The amount of the deposit wrongfully withheld; AND
• Twice the amount wrongfully withheld as a penalty

Penalty Calculation:
- Amount Wrongfully Withheld: $[AMOUNT]
- Double Damages (2x): $[AMOUNT]
- Total Penalty: $[AMOUNT]

C. Forfeiture for Failure to Comply

Under Ariz. Rev. Stat. Section 33-1321(D), if a landlord fails to return the deposit or provide an itemized statement within 14 business days, the tenant is entitled to the full deposit regardless of any damages.

D. Attorney's Fees and Costs

Under Arizona law, the prevailing party in any legal action for security deposit violations is entitled to reasonable attorney's fees and costs.

E. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence to support this claim:

[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist (MICO form)
[ ] Move-out inspection report/checklist
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]

VII. DEMAND

We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:

1. Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]

2. Statutory Penalties: Pay to our Client the statutory penalty for wrongful withholding: $[AMOUNT]

3. Total Payment: The total amount due is $[TOTAL AMOUNT]

Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT NAME] Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the time specified, we are authorized and prepared to:

1. File Suit: Commence legal action in Arizona Justice Court (for claims up to $3,500) or Superior Court for return of the deposit, statutory penalties, attorney's fees, and costs.

2. Seek Maximum Penalties: Request the court impose double damages for wrongful withholding pursuant to Ariz. Rev. Stat. Section 33-1321(E).

3. Seek Attorney's Fees: Request the court award reasonable attorney's fees.

4. Report Violations: Report your conduct to:
   - Arizona Attorney General - Consumer Protection Division
   - Arizona Department of Housing
   - Better Business Bureau

5. Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.

IX. RESPONSE REQUESTED

Please respond to this demand in writing within fourteen (14) days. Your response should include:

1. Your position on the amount owed to our Client
2. Any documentation supporting claimed deductions
3. Payment or a good-faith settlement offer

If we do not receive a satisfactory response, we will file suit without further notice.

X. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
[STATE BAR OF ARIZONA NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

ARIZONA SECURITY DEPOSIT QUICK REFERENCE

ARIZONA-SPECIFIC PRACTICE NOTES

[ ] Business Days: The 14-day deadline is calculated in business days, not calendar days. Weekends and state holidays do not count.

[ ] Nonrefundable Fees: Arizona allows landlords to collect nonrefundable cleaning fees and pet deposits if specifically designated as nonrefundable in the rental agreement.

[ ] MICO Form: Many Arizona landlords use a Move-In/Move-Out Inspection Checklist (MICO) form. If one was completed, it is powerful evidence.

[ ] Pool/Spa Cleaning: Arizona properties with pools often have specific cleaning requirements. Verify whether pool maintenance was tenant's responsibility.

[ ] HVAC Filters: Given Arizona's climate, HVAC filter replacement is typically considered normal maintenance, not tenant damage.

[ ] Justice Court vs. Superior Court: For claims up to $3,500, file in Justice Court. For larger amounts, file in Superior Court.

[ ] Maricopa County: Maricopa County has specific filing procedures and may have higher caseloads. Allow extra time for processing.

[ ] Mobile Home Parks: Mobile home tenancies have additional protections under Ariz. Rev. Stat. Title 33, Chapter 11.

This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed Arizona attorney before use.