What constitutes an illegal lease in Arizona?

A lease that contradicts federal or state law, such as those that discriminate against protected classes, is considered illegal in Arizona. This is primarily due to the Fair Housing Act and similar state regulations that prohibit discrimination based on factors such as race, color, religion, sex, national origin, familial status, and disability. A lease that imposes terms or conditions based on these protected classes is not enforceable, as it violates the fundamental rights afforded to tenants and potential renters.

In contrast, leases that include annual rent increases or require a security deposit are generally permissible as long as they comply with Arizona's legal standards regarding those practices. For example, Arizona law allows landlords to specify terms related to rent increases in the lease. Similarly, while a verbal lease can be legally binding in Arizona, it lacks the formality and clarity that a written lease provides, making it less secure in practice. However, the presence or absence of a written lease does not inherently render a lease illegal.