Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Arizona, the regulation of security deposits for residential leases is governed by the Arizona Residential Landlord and Tenant Act. According to Arizona law (A.R.S. § 33-1321), a landlord may not demand a security deposit that exceeds one and a half month's rent. The security deposit can be used by the landlord to cover unpaid rent, repair damages to the property beyond normal wear and tear, and other charges specified in the lease agreement, such as cleaning. Upon termination of the lease, the landlord is required to return the security deposit, less any deductions for amounts lawfully withheld, to the tenant within 14 business days. If the landlord withholds any portion of the security deposit, they must provide the tenant with an itemized list of deductions along with the amounts deducted. Failure to comply with these requirements can result in the landlord being liable to the tenant for the withheld amount plus twice the amount wrongfully withheld.