How is an AZ Security Deposit held by law?

[NatTrak]

What is the name of your state (only U.S. law)? AZ

I cannot find the A.R.S. describing "where the tenants security deposit is to be held."

A property manager leased the owner's property, and a tenant paid rent. The property manager collected the tenants security deposit and did not hold it, rather the property manager forwarded the deposit monies to the owner, who lives out of state.

Is this legal?

 

[quincy]

What is the name of your state (only U.S. law)? AZ

I cannot find the A.R.S. describing "where the tenants security deposit is to be held."

A property manager leased the owner's property, and a tenant paid rent. The property manager collected the tenants security deposit and did not hold it, rather the property manager forwarded the deposit monies to the owner, who lives out of state.

Is this legal?

See: A.R.S. 33-1321.

From the following link, scroll to Chapter 10 for the Arizona Residential Landlord and Tenant Act and then click on Article 2, Section 33-1321 for the landlord's obligation on Security Deposits:
http://www.azleg.gov/ArizonaRevisedStatutes.asp?Title=33

Landlords in Arizona do not appear to have specific rules they must follow when holding a tenant's security deposit. The property manager does not appear, therefore, to have done anything improper by sending the deposit money to the owner.

 

[STEPHAN]

I would rather have the deposit with the property owner (who has the house) than some property manager, who can just run off.

 

[quincy]

I would rather have the deposit with the property owner (who has the house) than some property manager, who can just run off.

Although I find it odd that Arizona does not require an account set up for the holding of tenant security deposits, I am of the same mind as you on having the deposit money held by the owner rather than the property manager.