HB 2161
Initials DC/TM Page 1 Regulatory Affairs
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
HB 2161: rent increase; limitation; substantial remodel
Sponsor: Representative Schwiebert, LD 2
Committee on Regulatory Affairs
Overview
Prohibits a landlord from increasing the rent of a dwelling unit unless the unit has been
substantially remodeled.
History
The Arizona Residential Landlord and Tenant Act, allows a landlord and a tenant to create a rental
agreement to determine the terms and provisions of the lease and the rights and obligations of
the parties involved. If a rental agreement is not used, a tenant must pay rent as the fair rental
value for the use and occupancy of the dwelling unit (A.R.S. § 33-1314).
A dwelling unit is defined as a structure or part of a structure that is used as a home, residence
or sleeping place by one person who maintains a household or by two or more persons who
maintain a common household. This does not include property accommodating a mobile home
unless the landlord is renting or leasing the mobile home (Arizona Department of Housing –
Arizona Residential Landlord and Tenant Act).
Provisions
1. Prevents a landlord from increasing the rent by more than 5% plus the lesser value between
the percentage change in the cost of living or 10%. (Sec. 1)
2. Stipulates that the increase in the percentage is determined by the lowest rent charged for the
dwelling unit during the 12 months prior to the increase. (Sec. 1)
3. Exempts dwelling units that are substantially remodeled and defines the term as either:
a) modifying or improving any structural, electrical, plumbing or mechanical systems
requiring a permit; or
b) requiring the tenant to leave the unit for at least 30 days to abate hazardous materials,
such as lead-based paint, mold and asbestos. (Sec. 1)
4. Specifies that substantially remodeled does not include cosmetic changes that can be
completed without unit vacancy. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note