A.R.S. tit. 33 ch. 17 — Arizona Revised Statutes Title 33 Chapter 17 — Residential Rental Property

33-1901. Definitions In this article, unless the context otherwise requires: 1. "Managing agent" means a person, corporation, partnership or limited liability company that is authorized by the owner to operate and manage the property. 2. "Residential rental property" means property that is used solely as leased or rented property for residential purposes. If the property is a space rental mobile home park, residential rental property includes the rental space that is leased or rented by the owner of that rental space but does not include the mobile home or recreational vehicle that serves as the actual dwelling if the dwelling is owned and occupied by the tenant of the rental space and not by the owner of the rental space. 3. "Slum property" means residential rental property that has deteriorated or is in a state of disrepair and that manifests one or more of the following conditions that are a danger to the health or safety of the public: (a) Structurally unsound exterior surfaces, roof, walls, doors, floors, stairwells, porches or railings. (b) Lack of potable water, adequate sanitation facilities, adequate water or waste pipe connections. (c) Hazardous electrical systems or gas connections. (d) Lack of safe, rapid egress. (e) Accumulation of human or animal waste, medical or biological waste, gaseous or combustible materials, dangerous or corrosive liquids, flammable or explosive materials or drug paraphernalia. 33-1902. Residential rental property; recording with the assessor; agent designation; civil penalty; fee A. An owner of residential rental property shall maintain with the assessor in the county where the property is located information required by this section in a manner to be determined by the assessor. The owner shall update any information required by this section within ten days after a change in the information occurs. The following information shall be maintained: 1. The name, address and telephone number of the property owner. 2. If the property is owned by a corporation, limited liability company, partnership, limited partnership, trust or real estate investment trust, the name, address and telephone number of any of the following: (a) For a corporation, a corporate officer. (b) For a partnership, a general partner. (c) For a limited liability company, the managing or administrative member. (d) For a limited partnership, a general partner. (e) For a trust, a trustee. (f) For a real estate investment trust, a general partner or an officer. 3. The street address and parcel number of the property. 4. The year the building was built. B. An owner of residential rental property who lives outside this state shall designate and record with the assessor a statutory agent who lives in this state and who will accept legal service on behalf of the owner. The owner shall designate the agent in a manner to be determined by the assessor. The information shall include the name, address and telephone number of the agent. C. Residential rental property shall not be occupied if the information required by this section is not on file with the county assessor. If the owner has not filed the information required by this section with the county assessor and the residential rental property is occupied by a tenant and the tenant chooses to terminate the tenancy, the tenant shall deliver to the landlord, owner or managing agent of the property a written ten day notice to comply with this section. The notice shall be delivered by certified mail, return receipt requested, or by hand delivery. If the owner does not comply with this section within ten days after receipt of the notice, the tenant may terminate the rental agreement and the landlord shall return all prepaid rent to the tenant. Security deposits shall be returned in accordance with section 33-1321, subsection D. The landlord shall return those monies by certified mail, return receipt requested, or by hand delivery to the tenant within ten days after the termination of the rental agreement. This subsection applies to any existing lease and to any new lease after August 25, 2004. Notwithstanding this subsection, an owner is in compliance with this subsection only if the owner had filed the information required by subsection A of this section with the county assessor. D. All records, files and documents that are required by this section are public records. E. For residential rental property that is acquired by an owner after the date of the notice of assessed valuation and the notice prescribed by section 42-15103 and until the issuance of the next notice of assessed valuation, a city or town shall assess a civil penalty of one thousand dollars against a person who fails to comply with this section, plus an additional one hundred dollars for each month after the date of the original violation until compliance occurs. The court shall not suspend any portion of the civil penalty provided by this subsection. F. Notwithstanding subsection E of this section, if a person complies within ten days after receiving the complaint that notices the violation, the court shall dismiss the complaint and shall not impose a civil penalty. G. Except for newly acquired residential rental property as prescribed by subsection E of this section, if a residential rental property owner fails to register with the county assessor as prescribed by this section, the city or town may impose a civil penalty in the amount of one hundred fifty dollars per day for each day of violation after the date of the most recent notice of assessed valuation and the notice prescribed by section 42-15103. If a person complies within ten days after receiving the notice from the county assessor, the court shall dismiss the complaint and shall not impose a civil penalty. H. In carrying out this section, the county assessor shall have immunity as provided in section 12-820.01. I. The county assessor may assess a fee of not more than ten dollars for each initial registration and each change of information in the registry. J. On request from a city or town the county assessor shall provide the most current list of all registered rental property owners within the city's or town's boundaries. 33-1903. Appointment of temporary receiver; term; duties, accounting A. This state or a city, town or county of this state may apply to the superior court for the appointment of a temporary receiver to manage a property that is designated as a slum property by a city, town or county or the state. B. If the court determines that the appointment of a temporary receiver is necessary, the court may order the appointment of a temporary receiver to manage or operate the premises for as long as the court deems necessary. The court shall not appoint a temporary receiver for a term of more than one year. C. A temporary receiver who is appointed pursuant to subsection B of this section either shall be a real estate licensee specializing in property management or an attorney specializing in real estate law and shall swear or affirm to faithfully and fairly discharge the receiver's duties. The court may require the temporary receiver to post a bond in an amount fixed by the court. D. The court shall determine the following: 1. The management duties of the receiver. 2. The amount of compensation to be paid to the receiver. 3. The method of payment. 4. The payment periods. E. The temporary receiver shall continue to manage the property during the pendency of any appeal or until relieved by the court. The court may remove a temporary receiver on its own motion or on the motion of any party or the temporary receiver. F. The temporary receiver may do any of the following: 1. Take control of the property. 2. Pay the mortgage on the property if there are sufficient monies derived from the income of the property to do so. 3. Collect rents due on the property. 4. Make or have made any repairs that are necessary to bring the property into compliance with any statute or ordinance. 5. Make payments that are necessary for the maintenance or restoration of utilities to the property. 6. Purchase materials that are necessary to make repairs. 7. Renew, terminate or modify existing rental contracts and leases as provided by law. 8. Enter into new rental contracts and leases. 9. Affirm, renew or terminate an existing insurance contract that covers the property as provided by law. 10. Enter into a new contract that provides for insurance coverage on the property. 11. Hire security or other personnel that are necessary for the safe and proper operation and maintenance of the property. 12. Prosecute or defend suits that flow from the management of the property and retain counsel. 13. Exercise all other authority that an owner of the property would have except the authority to sell the property. G. Before the receiver spends monies in excess of ten thousand dollars the court and the party who is responsible for the payment of the temporary receiver's expenditures shall approve the expenditure of those monies. H. The costs of compensation to and expenditures by the temporary receiver shall be paid in the following order of priority: 1. From the income that is derived from the property and that is available after all taxes and mortgages are satisfied. 2. By the party who requested the appointment of the temporary receiver. I. On filing with the county recorder of the county in which the property is located, a lien is created in favor of the party who pays the temporary receiver's costs of compensation and expenditures other than the defendant. The lien is prior to all other liens, obligations or encumbrances except for prior recorded mortgages, restitution liens, child support liens and general tax liens. J. On the completion of the receivership, the temporary receiver shall file with the court a full accounting of all costs and expenses incurred and all income received during course of the receivership. K. On finding that the appointment of a temporary receiver is no longer warranted, the court on its own motion or the motion of any party may terminate the temporary receivership. L. After all violations have been cured, the temporary receivership shall be terminated. 33-1904. Inspections A. In addition to any other statute or ordinance providing for the inspection of property, a city, town or county or the state may inspect the residential rental property if either of the following occurs: 1. A property owner fails to comply with the provisions of section 33-1902. The property is subject to immediate inspection until there is compliance. If the property is occupied, the inspecting authority shall request consent of the tenant before entering the interior of the structure. Except as otherwise provided by law, the right of inspection does not extend to the interior of a dwelling unit in a space rental mobile home park or recreational vehicle park that is not owned by a landlord unless the tenant is in possession of the dwelling unit or, if the dwelling unit is vacant or abandoned, the owner consents to the inspection. If the tenant refuses to consent to the entry, the inspecting authority has recourse to any remedy provided by law to secure entry. 2. A property has been designated as a slum property by a city, town or county or the state. The city, town, county or state may annually inspect a property designated as a slum property for three consecutive years. A city, town or county or the state shall establish the process by which a property is designated as a slum property. B. The property owner is responsible for the costs of an inspection that is conducted pursuant to this section. If the property that is inspected is a dwelling unit in a space rental mobile home park or recreational vehicle park that is not owned by a landlord, the owner of the dwelling unit is responsible for the costs of the inspection. C. On recording a penalty or inspection cost with the recorder's office in the county in which the property is located, the penalty or inspection cost is deemed to be an assessment and is prior to all other liens, obligations or encumbrances except for liens under title 12, chapter 7, article 12, prior recorded mortgages, restitution liens, child support liens and general tax liens. If the property that was inspected was a dwelling unit in a space rental mobile home park or recreational vehicle park that is not owned by a landlord, a lien shall not be recorded against the owner of the property other than the dwelling. The lien may be filed with the department of transportation and, if filed, has the same effect as otherwise provided for in this section. D. This section shall not affect any other statute or ordinance pertaining to inspection of property. 33-1905. Slum property; appeal A. A governmental agency that may designate a residential rental property as a slum property shall establish procedures by which the owner of the property may file an administrative appeal contesting the designation of the property. B. The decision at the hearing on the administrative appeal is the final administrative decision. C. A party may appeal the administrative decision pursuant to title 12, chapter 7, article 6. 33-1906. Licensed property management company; training program A city or town may require a residential rental property owner whose property has been designated as a slum or exhibits the criteria prescribed in section 9-1303, relating to violations that materially affect the health and safety of the occupants of the property, to hire a property management firm that is regulated pursuant to title 32, chapter 20, article 3.1 to manage the property, participate in the city or town's crime free multihousing program, if applicable, and attend city or town approved landlord tenant training classes if available from the city or town. The city or town may also require the property owner to participate in comparable training provided by a nonprofit corporation that is designated as a section 501(c)(3), 501(c)(4), 501(c)(5) or 501(c)(6) corporation and that is certified by the city or town to provide that training. This shall not apply to mobile home parks which are in compliance with section 33-1437. 33-1907. Registration with one-call notification center This article does not relieve a landlord of an apartment community as defined in section 40-360.21 or a landlord of a mobile home park from the obligation to register with a one-call notification center as prescribed by section 40-360.32.