Arizona Commercial Lease Review

Will city tax be added to my Arizona commercial rent?

A.R.S. 42-6004(H) bars cities and towns, from and after December 31, 2024, from levying transaction privilege or similar taxes on renting real property for residential purposes. No equivalent bar covers commercial leasing, so where your city taxes commercial rentals, the landlord is likely to pass that tax through as additional rent. Ask for the current city rate in writing and confirm whether the lease treats changes in that rate as your cost. When comparing spaces in different cities, add the tax to the quoted rent so the comparison is fair. Also check whether the lease applies the tax to additional rent such as CAM and insurance, which can raise the real cost noticeably.

What can an Arizona landlord do when rent is late?

Under A.R.S. 33-361, once rent is due and in arrears for five days, the landlord may re-enter or bring an action to recover possession without formal demand. The case must be tried between five and thirty days after it starts, and an appeal requires a bond covering rent during the appeal.

A.R.S. 33-362 gives the landlord a lien on your nonexempt property placed on the premises until rent is paid, and the right to seize it. Property belonging to others, such as leased equipment, is not liable for your rent, but the landlord may hold or sell seized property to cover rent owed. Keep an up-to-date list of what you own on site, and notify equipment lessors of any seizure.