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Arizona Rent-to-Own (Lease Option) Agreement

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Updated on June 5th, 2023

An Arizona rent-to-own agreement (also known as a “lease-option”) is a combined residential lease and purchase agreement that gives the tenant the right to buy the residence during what is called an “option term.” Under the contract, the tenant commits to a fixed rental term in accordance with the document’s provisions. In some circumstances, a percentage of the monthly rent may go towards making a down payment on the property. This type of arrangement is suitable for individuals who are interested in acquiring property but lack the financial means.

Rental Laws – Title 33, Chapter 3 (Landlord and Tenant)

Purchase Agreement Laws – Title 33, Chapter 4 (Conveyances and Deeds)

Disclosures (9)

  1. Bed Bugs
  2. Fees
  3. Landlord-Tenant Act
  4. Lead-Based Paint Disclosure
  5. Move-in / Move-out Checklist
  6. Names and Addresses
  7. Pool Safety Notice
  8. Taxes
  9. Utility Charges

1) Bed Bugs

Educational materials must be provided to new tenants regarding the prevention and management of bed bugs.

2) Fees

Any non-refundable fees or deposits must be stated by the landlord in writing. Any fee or deposit will be considered refundable if it is not stated in a written document.

3) Landlord-Tenant Act

New tenants must be informed in writing that the Arizona Residential Landlord and Tenant Act is available on the Department Of Housing website.

4) Lead-Based Paint Disclosure

This document is used to inform tenants that the property may contain traces of lead-based paint. This is only necessary if the dwelling was constructed prior to 1978.

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5) Move-in/Move-out Condition Checklist

This form must be provided to new tenants when they move in to specify any prior damages to the property. The landlord must also provide written notice informing the tenant that they may be present during the move-out inspection.

6) Names and Addresses

Before the least starts, the landlord must disclose to the tenant the names and addresses an owner of the property and the person authorized to manage the premises.

7) Pool Safety Notice

If the rental unit has a swimming pool, then this notice must be provided to new tenants describing their responsibilities regarding pool safety.

8) Taxes

If the municipality changes the percentage of a transaction privilege tax on a residential unit, then the landlord may reflect those changes to the tenant with an increase in rent with at least thirty (30) days’ written notice. This provision must be stated in the rental agreement in order for the landlord to enact these changes.

9) Utility Charges

Should the landlord charge separately for any utility services and administration fees relating to those services, then those services and fees must be described in the rental agreement.

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