Arizona Commercial Lease Agreement

Security Deposit Limits and Handling

• Landlords don’t need to bear interest on the security deposit, as the lessee isn’t entitled to interest.
• They can decide on any amount for the security deposit, as there are no maximum limits.
• In Arizona, security deposits can share an account with other funds.
• While no law states when the lessor must return the security deposit, some follow the 14 days, while others return it later.

Right of Entry for Inspections and Repairs

• This state is strict regarding the right of entry and repairs. Tenants are entitled to quiet enjoyment. This law means the landlord can’t access the premises without a reasonable reason. Even with a valid excuse, the lessor must provide notice of their entry.
• Lessors must also maintain the building in liveable conditions. This includes any common areas and adhering to the building code.
• Lessees are responsible for any renovations, modifications, or customer works. However, they need the lessor’s approval to start with it.
• Any damages caused by the tenant or their operations are their responsibility to repair.
• Tenants must return the property in the same or better condition than they received it. However, it makes provisions for everyday wear and tear.

Environmental Responsibilities

• Landlords are required to follow all environmental legislation. These laws come from the Environmental Protection Agency (EPA).
• If the landlord leases the property, they must inform the tenant about this legislation. If there are any environmental issues on the property, they must fix it before the lease starts.
• Once the lease begins, most of this responsibility falls to the lessee. The tenant must follow all legislation regarding environmental issues. It’s especially crucial if the lessee’s business deals in anything that affects environmental legislation.

Notice Requirements

• For a weekly commercial agreement, the notice period is 10 days. A monthly agreement must have a 30-day notice.
• Quarterly and annual contracts don’t have specified notice periods. However, fixed-term agreements have no notice period since they end on the selected date.
• While some reasonable excuses exist for terminating a fixed lease, it can also incur penalties.
• Penalties include withholding the entirety or part of the security deposit, escalating the rent, or hiring a debt collection agency.

Include Required Disclosures

Arizona has several legal disclosures landlords must add to this contract. Without these disclosures, a court of law might deem the contract invalid.

• Zoning, Taxes, and Restrictions: Explain relevant zoning regulations, local taxes, and usage limits. It’s only information applicable to the property.
• Material Facts: Lessors must disclose all property information that might obstruct the business. 
• Lead-Based Paint: If a building is older than 1978, then the lessor must tell the tenant whether lead-based paint is present. Should it be, they must include information on the hazards of it.