Q: I have a tenant with poor credit that wants to pre-pay an entire year of rent. I think that is illegal in some states. Can I do that in Arizona?

A: Yes, you can accept pre-paid rent from an applicant if they offer it. A.R.S. 33-1321 says that you can only demand a security deposit that is equal to, or less than, 1.5 times the monthly rent. Another part of that statute says, “This subsection does not prohibit a tenant from voluntarily
paying more than one and one-half month’s rent in advance.” Therefore, if they would not financially qualify because they don’t have income equal to your standards, an applicant could theoretically offer to pay the full year rent up front. Please note that this does raise a lot of questions as to why they have such funds available, but don’t have an income stream.

Mark B . Zinman, Williams, Zinman & Parham P.C.

Information contained in this article is for informational purposes only and should not be considered legal advice. You should always contact an attorney for legal advice and not rely on information published here.