AZ - last month rent and security deposit

[Jack Stone]

We have a tenant who wants to use their security deposit as last months rent in Arizona. 

AZ law enables a security deposit to be a max of 1.5 months rent. Which we collected. Now that they are leaving they want to not pay rent and use the final month payment out of the security deposit for the last month. i don’t see anywhere in the lease or law that this is allowed. 

curious to get others opinion and if they don’t pay what are my next best steps. 

[Dan Schwartz]

I’ve been asked this a number of times, usually by people who have just moved to AZ.  

First response is that the security deposit is a security deposit to be returned after move out, less any deductions for damages.  They didn’t pre-pay rent; they paid a security deposit.  That has been sufficient explanation in the past for my tenants.  

If someone were to press harder, I’d point out that they easiest way for them to have the security deposit applied as the last month’s rent in Arizona is for them not to pay they last month’s rent, receive a five day notice, be served an eviction notice, and lose in court (which is a certainty when proof of payment can’t be provided).  That’s doable in Arizona within the 30 days of that “last month.”  The judge will allow the security deposit to be applied to the unpaid rent AND there could be further damages awarded to the landlord.  Boom.  Security deposit applied as last month’s rent and they get an eviction on their record for their desire to not pay the final rent payment. 

Hopefully you have good folks who will understand after explanation #1.