Arizona REALTORS Lease Agreement Overview
The Arizona Association of Realtors Residential Lease Agreement is a standardized rental agreement commonly used by lessors and lessees for residential property in the state of Arizona. This form, which was drafted by the Arizona Association of REALTORS® (AAR), provides landlords and tenants with a comprehensive template for a legally binding lease to respect their rights and clarify their obligations.
The lease agreement covers all aspects of a residential rental, including the duration of the lease, the amount of rent, the responsibility for utilities, provisions for the return of a security deposit, the pet policy and other rules regarding pets, and procedures for the payment of late fees. The AAR Residential Lease also contains a variety of additional provisions that are not typically found in other lease agreements for rental properties including options that address the following:
The AAR Residential Lease is frequently used by both individuals and property management companies because it is comprehensive, straightforward and cost-effective . Moreover, the document may be modified to address the needs of the specific parties to the lease agreement. For example, a party must initial and add their initials next to the legal text to agree to the addition of any paragraphs in the lease agreement.
There is a reason the Arizona REALTORS Residential Lease Agreement is one of the most popular lease agreements in the state of Arizona. The agreement clearly defines the parties’ rights (the landlord and tenant), all major aspects of the tenancy, allows for a common-sense resolution to conflicts that may arise between the parties during the term of the lease and provides a template for the adjustment of the lease to meet the specific needs of the parties.
Crucial Components of the Lease Agreement
In Arizona, the Residential Lease Agreement is the document that safeguards both the landlord’s and tenant’s rights and is used to determine how the parties resolve issues such as rent payments, maintenance responsibilities, security deposits and damages. It must contain the names and addresses of both the landlord and the tenant(s), as well as descriptions of the property, term, rent, and obligations, although under Arizona law, a valid a hand written lease does not require that each term be included in the lease as long as the agreement contains the essential elements.
The first section of most Arizona Residential Lease Agreements states the amount of the rent, when it’s due and what forms of payment are acceptable (i.e., personal check, money order, cash etc.). Although most agreements call for full rent to be paid on the first of the month, landlords can provide that the monthly amount will be divided into two prorated payments with the first payment due by the fifteenth of the month and the second payment due by the end of the month. Additionally, if the land lord allows pets, an additional pet deposit and/or monthly charge may be included.
The agreement most often requires tenants to pay a non-refundable pet deposit, which they can only keep if the cost of cleaning or repairing the property exceeds their normal security deposit deduction at the end of the lease. A tenant may be required to get renter’s insurance in order to keep a dog or cat on the premises.
A Residential Lease Agreement usually provides for a 5-day grace period from the first of the month to prevent the landlord from initiating eviction proceedings. After the rent becomes delinquent, the landlord will usually allow time for the tenant to pay the rent and provide a 5-day notice before proceeding with an eviction action. Despite this, an eviction action may be filed on the fifth day of the delinquency.
The lease usually requires a security deposit that can only be used for the cleaning, repair or replacement of items in the unit. It cannot be used to offset past rent or other costs, with deductions limited to damages directly attributable to the tenant. When the lease ends, the landlord must return the full amount of the security deposit, less any deductions, at the time the keys to the unit are returned. If he fails to do so within 14 days after the tenant surrenders possession of the premises, the entire deposit is forfeited.
Legal Mandates and Adherence
A primary requisite for any valid lease agreement is that it be in writing if it pertains to a term of more than one year. In Arizona, the Statute of Frauds, A.R.S. § 44-101, et seq., mandates that leases that are over one year in duration must be in writing and signed by the parties to be valid and enforceable. While an oral lease can be valid for a one – year term, if that lease is later modified to extend its duration to more than one year, the modification must be in writing or it will be unenforceable under the Statute of Frauds.
Arizona law contains specific requirements for a Residential Lease Agreement governed by the Arizona Association of Realtors Residential Lease Agreement that pertains to the safety and habitability of a rental property. These requirements are found in the Arizona Residential Landlord and Tenant Act ("Landlord Tenant Act"). These provisions include regulations on six broad issues including: 1) security deposits; 2) condition of premises including mold and lead-based paint issues; 3) entry into the property by the landlord or landlord’s agent; 4) discrimination against tenants prohibited; 5) duties of the landlord and the tenant; and 6) disclosures that are required under the Act.
For investors and landlords, it is essential to abide by all legal requirements in preparing, signing or modifying a Residential Lease Agreement for a property in Arizona. If not, this can potentially create liability for damages to the parties to the Agreement, as well as expose the landlord and/or investor to potentially expensive and burdensome litigation.
Advantages of Utilizing the Standardized Lease
This standardized lease agreement we consider is a good fit no matter who we may represent because it provides a consistent point from which we can start with the more common residential landlord-tenant issues for our clients. Whether they are a landlord or tenant, both parties have a good faith understanding of the nature of their agreement and the protections provided and obligations required of each party. The Arizona Association of Realtors has put forth a good product in this standardized lease and has provided the language and real estate industry professionals that need to address unique circumstances that may arise in the landlord-tenant relationship. This is a significant advantage over the generic, non-industry standards from places like LegalZoom and the like. Having an industry-standard lease that has addressed numerous issues prior gives clients peace of mind and the ability to anticipate the unforeseen.
Frequent Errors to Circumvent
Under the Arizona Residential Landlord Tenant Act, ALL changes to any Residential Lease Agreement must be in writing to be enforceable. The failure to do so may result in a party’s inability to enforce the provisions of the Residential Lease Agreement. A common example of this is when a tenant or landlord has paid a lower than standard rental amount for a period of time. This arrangement may be informally re-stated with the parties causing some confusion later on as to what the applicable rent is. It is critical to always have an addendum to the original Residential Lease Agreement if any change is made to that agreement.
Another common mistake comes from landlords and owners (including Property Managers) to use a self-help eviction to try to remove a tenant from the rental property. This is especially true when the landlord or owner of a rental property believes a tenant to be committing illegal activities (frequently drug or gang related activities). Arizona law does allow a landlord or owner to act when there is an imminent threat to the property , however, this is a narrow exception and it is critical to have legal counsel review the facts before taking such action.
Negotiation Strategies for Lease Provisions
Negotiating lease terms requires both parties to be well-versed in the subject and to be willing to compromise at points. The chances for success in accomplishing this are far superior when both parties have the ability to satisfy each of the concerns of the other, and this is more likely when they begin from a good base of knowledge about the form and function of the proposed lease agreement.
While the Arizona Association of Realtors Residential Lease Agreement is a comprehensive form document, circumstances may arise where there is a need to either insert language to account for specifics not addressed in the form, or to delete or alter the existing language to suit the needs of one or both parties. If this is the case, the tenant and landlord may be tempted to "go it alone." This is not advisable. Also as mentioned above, you should contact an attorney if the proposed time period exceeds 48 months, but even if the lease is for less than 48 months, it is still a good idea to have a qualified attorney on your side reviewing the contract. Even if the changes to the lease are relatively minor, you can’t foresee everything. An experienced commercial real estate attorney understands the requirements of the leasing process and can advise you on important issues and concerns before they become troublesome.
Assistance and Resources for Lessors and Lessees
The Arizona Association of Realtors provides a variety of resources and support systems to help landlords and tenants understand their respective rights and responsibilities when using the Residential Lease Agreement. These resources include educational materials, FAQs, and perhaps a dedicated customer support team that can guide you through the complex all-important lease agreement from start to finish.
All parties involved in the residential leasing process should take advantage of these resources in order to get the best outcomes from their dealings. For instance , the association offers a detailed visual guide that takes you through the important facets of your Residential Lease Agreement. The association also frequently holds classes and seminars that can help to simplify the leasing process, from securing the initial agreement to carrying out day-to-day interactions concerning the property.
Thus, if you are in the market for a new home to lease in the state of Arizona—or you are looking to lease property in the future—look to the Arizona Association of Realtors for assistance. With so many different factors to consider, it’s critical that you understand the complex legal jargon of the state’s Residential Lease Agreement as fully as possible.
