Ariz. Rev. Stat. § 33-1366
Fire or casualty damage
Operative Text
A. If the dwelling unit or premises are damaged or destroyed by fire or casualty to an extent that enjoyment of the dwelling unit is substantially impaired, the tenant may do either of the following: 1. Immediately vacate the premises and notify the landlord in writing within fourteen days thereafter of his intention to terminate the rental agreement, in which case the rental agreement terminates as of the date of vacating. 2. If continued occupancy is lawful, vacate any part of the dwelling unit rendered unusable by the fire or casualty, in which case the tenant's liability for rent is reduced in proportion to the diminution in the fair rental value of the dwelling unit. B. If the rental agreement is terminated the landlord shall return all security recoverable under section 33-1321. Accounting for rent in the event of termination or apportionment is to occur as of the date the tenant vacates all or part of the dwelling unit.
Under A.R.S. § 33-1366, when a rental unit is damaged or destroyed by fire or other casualty to the point that the tenant's enjoyment of the home is substantially impaired, the law provides two possible outcomes. The tenant may vacate entirely and terminate the rental agreement by notifying the landlord in writing within fourteen days, ending rent obligations as of the move-out date. Alternatively, if continued occupancy is lawful, the tenant may remain in the usable portion of the unit and pay only a proportionally reduced rent reflecting the diminished rental value. If the agreement is terminated, the landlord must return any security deposit recoverable under A.R.S. § 33-1321, with all rent accounting tied to the date the tenant vacates.
Plain English — not legal advice.
Property owners and managers should be aware that A.R.S. § 33-1366 limits their ability to collect full rent after a fire or casualty event that substantially impairs a tenant's use of the unit. Compliant operators typically document the extent of damage promptly, adjust rent charges to reflect any reduction in fair rental value when partial occupancy continues, and process security deposit returns in accordance with A.R.S. § 33-1321 if the rental agreement is terminated. Maintaining clear written records of damage assessments, tenant communications, and rent adjustments helps operators demonstrate compliance with the proportional-reduction and accounting requirements the statute establishes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
A.R.S. § 33-1366 gives tenants meaningful options when fire or casualty damage substantially impairs their ability to enjoy their home. Tenants who choose to vacate entirely can terminate the rental agreement by providing written notice to the landlord within fourteen days of leaving, and those who remain in a partially usable unit are entitled to a rent reduction proportional to the loss in fair rental value. Tenants who believe a landlord is not honoring these rights — such as by refusing to reduce rent or withholding a security deposit — may consider contacting a local tenant-rights organization, raising the provision as a defense in any eviction or collection proceeding, or consulting an attorney familiar with Arizona landlord-tenant law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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