The relationship between a landlord and tenant is governed by the parties’ lease and Arizona law. Arizona’s Revised Statutes outline specific obligations of both property owners and renters, and both are bound by that law regardless of whether the obligation is spelled out in the lease agreement. Landlords should be aware of their legal obligations under Arizona law so they can minimize or prevent loss caused by non-compliance with the relevant statutes.

Obligations of Lease Agreement

If not prohibited by law, the terms and conditions of the lease agreement control the relationship of the parties. Some things are illegal to put into a lease. For example, a landlord cannot let someone live somewhere rent free in return for not maintaining the property. A.R.S. § 33-1316. A landlord also cannot refuse to rent a place to someone because they have children. A.R.S. § 33-1317. In fact, the parties cannot enter into a contract obligating one or both parties to perform any act considered illegal under Arizona or federal law.

Obligations Created By Arizona Law

A landlord is required to do the following under Arizona law. A.R.S. §§ 33-1322 – 1323, 1324.

• Give the tenant the name and address of the property owner and manager

• Tell the tenant how to get a free copy of the Arizona Landlord and Tenant Act

• Give the tenant a signed copy of the lease; a form recording any damages to the property, and a written notice that the tenant may be present at the move out inspection

• Give the tenant possession of the residence

• Comply with applicable building codes

• Make necessary repairs so that the residence is habitable

• Keep common areas clean

• Maintain all electrical, plumbing, heating, and air-conditioning equipment

• Provide for the removal of trash

• Supply running water and reasonable amounts of hot water

• Provide two days’ notice that he is going to enter the residence, unless there is an emergency, and enter at reasonable times.

• Limit the security deposit to 1 and ½ months’ rent

Covenant of Quiet Enjoyment

A landlord has the duty to provide quite enjoyment of the premises to the tenant, which means that the landlord’s title is not defective, and the tenant’s possession will not be disturbed. See Johansen v. Ariz. Hotel, 37 Ariz. 166, 173 (1930). This implied covenant prohibits a landlord from substantially and materially depriving the tenant of the beneficial use and enjoyment of the leased premises. See id. at 173–74; Restatement (Second) of Property, Landlord & Tenant § 4.3 (1977).

Implied Covenant Of Good Faith and Fair Dealing

Implied in every contract—including leases—is a covenant of good faith and fair dealing, which requires each contracting party to refrain from acting in a manner that would impair the right of the other to receive the benefits of their agreement. This implied covenant requires the landlord to act in good faith and fair dealing in all interactions with the tenant.

Tenant Options if Landlord Is Not Following The Lease/Arizona Law

Failure To Make Repairs A.R.S. § 33-1363. If a landlord fails to make repairs and the problem can be fixed for either less than $300 or an amount equal to one-half of the monthly rent (whichever is greater), the tenant can notify the landlord in writing that he is going to repair the problem at the landlord’s expense. The landlord has 10 days to fix the problem. After 10 days the tenant can hire a licensed contractor, submit a repair bill to the landlord, and deduct the cost of the repair work from his rent. This procedure applies unless the damage was caused by the tenant.

Failure to Supply Essential Services A.R.S. § 33-1364 If a landlord fails to provide running water, gas and/or electrical service, or fails to provide reasonable amounts of hot water, heat and/or cooling, then the tenant may give notice that the landlord is in breach of the lease. At that point, the tenant has three options.

First, the tenant can arrange for utilities on his own and deduct the cost from the rent. With the utility company’s approval, a group of tenants can collectively pay a landlord’s delinquent utility bill and deduct that amount from their rent. Second, the tenant can file suit and recover damages based on the decreased fair rental value of the residence. Third, the tenant can find substitute housing (e.g., a motel) during the period of the landlord’s noncompliance. If this occurs, the tenant is excused from paying rent for as long as the landlord does not provide the essential service.

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