AZ SB1178

Limits late fees in rental agreements to $50 per period of nonpayment or five percent of the unpaid periodic rent, whichever is greater.

Modifies judgment calculations in eviction cases so unpaid rent awarded may not include an entire periodic rental period unless the tenant actually possessed the premises for that entire period.

Allows tenants to reinstate rental agreements before a special detainer action is filed by paying only past due rent and reasonable late fees, without being required to pay attorney fees and court costs.

Requires landlords to file a satisfaction of judgment upon receiving complete payment from tenants, which triggers automatic sealing of eviction case records.

Expands automatic sealing of eviction records to cases dismissed before judgment or where judgment is entered in favor of the tenant.