Q: Who is responsible for the tenant's security deposit now that my property management agreement is terminated?

A: You are. According to Arizona law (A.R.S. § 33-1321), the property owner is ultimately responsible for the security deposit once a management agreement ends. Our company was acting as your agent, but that legal relationship has concluded. We've transferred the full security deposit and all relevant tenant documents to you, including the lease and move-in inspection report.

Q: What do I need to do with the security deposit?

A: The law requires you to either return the full security deposit or provide the tenant with an itemized list of deductions within 14 business days of them moving out. You must mail this list and any remaining deposit to the tenant's last known address. It's crucial to only deduct for damages beyond normal wear and tear.

Q: Why can't you just handle it for me? You have all the records.

A: Our legal authority to act on your behalf ended with our management agreement. Handling the deposit without a current contract exposes us to liability and could be seen as an unauthorized action. Our company policy is to ensure all actions are legally sound and properly documented. We've fulfilled our obligation to transfer all funds and records to you so you can meet your legal duties as the landlord.

Q: What if I don't follow the 14-business-day rule?

A: Failing to comply can result in serious legal consequences. The tenant can sue you for the wrongfully withheld deposit. If they win, you could be ordered to pay twice the amount of the deposit in damages, in addition to the original deposit amount. This is a significant risk that's easily avoided by following the law.

Q: I don't feel comfortable doing this myself. Can you help?

A: Yes, we can. We offer a separate, a-la-carte service specifically for handling the security deposit disposition. For a fee of $89.00, we will perform the final move-out inspection, prepare a legally compliant itemized statement, and ensure the deposit is returned correctly and on time. This service protects you from potential legal issues and ensures the process is done right.

Note: This is an optional service and is not included in our prior management agreement.

Early Termination & Move-Out Handling Policy

If a tenant moves out mid-month and management services are ending, Aloe Property Management will charge only a prorated management fee for that month the property is occupied.

However, if you choose to cancel management but request that Aloe PM complete the tenant’s Statement of Disposition and coordinate any required vendor work to prepare the property for return, we will charge:

The remaining prorated management fee plus $44.50, totaling the equivalent of one full monthly management fee ($89.00).
This fee extends the management agreement through the end of the month to allow us to legally complete the disposition, schedule vendors, and close out the tenancy in compliance with Arizona Landlord-Tenant laws.

If the management agreement is set to end on the last day of the month, a full management fee will still apply to cover completion of the move-out, final inspection, and Statement of Disposition.

An addendum will be signed extending the management agreement for an additional 30 days solely for the purpose of:

Completing the tenant’s move-out and disposition,
Coordinating vendor repairs or cleaning, and
Preparing the property for hand-off back to the owner.