Arkansas Security Deposit Laws: Limits, Returns, and Deductions
Complete guide to Arkansas security deposit regulations including the two-month limit, 60-day return deadline, itemized deductions, and penalties for...
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Effective July 20, 1979, Arkansas security deposit law is governed primarily by A.C.A. § 18-16-304 and § 18-16-305. While the rules are relatively straightforward, the 60-day return window is one of the longest in the country, and the applicability of the deposit cap depends on the size of the landlord's portfolio and management structure.
Security Deposit Limits
Official Law Citation: The rules and regulations outlined on this page are strictly configured under the official Arkansas Code Title 18, Chapter 16, Subchapter 3 - Security Deposits. Landlords must always ensure their lease agreements directly adhere to this state code.
Standard Limits (6+ Units or Managed for a Fee)
Landlords who rent more than five dwelling units or any landlord who hires someone else to manage the property or collect rent for a fee are subject to statutory deposit limits:
Small Landlords (5 or Fewer Units)
Landlords who own five or fewer residential dwelling units and do not hire a third party to manage the property or collect rent for a fee are not subject to these limits and may set deposit amounts at their discretion. However, charging excessively high deposits may still be challenged in court as unconscionable.
Pet Deposits
Arkansas law permits landlords to charge a separate pet deposit. There is no specific statutory cap on pet deposit amounts in isolation. However, for landlords subject to the security deposit limit under A.C.A. § 18-16-304, the total amount of all deposits, including any pet deposit, cannot exceed two (2) months' periodic rent.
Additionally, no pet deposit can be charged for trained service animals or emotional support animals, as these are protected under the Fair Housing Act.
What Can Be Deducted
Landlords may deduct from the security deposit for:
- Unpaid rent - any rent owed through the end of the tenancy.
- Damages beyond normal wear and tear - repairs for damage caused by the tenant, their guests, or pets.
- Cleaning costs - only to restore the unit to the condition it was in at move-in.
What is NOT Deductible
- Normal wear and tear - faded paint, minor scuffs, worn carpet from regular use.
- Routine maintenance - items the landlord would need to address between any tenants (e.g., changing HVAC filters, lawn care).
- Pre-existing damage - conditions present before the tenant moved in.
Return Deadline: 60 Days
Arkansas gives landlords 60 calendar days after the tenant vacates the property to return the security deposit or provide an itemized statement of deductions. The 60-day clock begins once the tenant has vacated and provided a valid forwarding address.
Itemized Statement Requirements
If the landlord withholds any portion of the deposit, they must provide the tenant with a written, itemized list that includes:
- A description of each deduction.
- The dollar amount of each deduction.
- The remaining balance returned to the tenant.
This statement must be mailed to the tenant's last known or forwarding address.
No Interest Required
Arkansas law does not require landlords to pay interest on security deposits, nor does it require that deposits be held in a separate, dedicated bank account (though doing so is best practice).
Penalties for Non-Compliance
If a landlord fails to return the deposit or provide an itemized statement within the 60-day window:
- The landlord forfeits the right to withhold any portion of the deposit for damages.
- The tenant can demand a full refund and, if the landlord willfully violates the statute, may recover up to twice the amount wrongfully withheld plus reasonable attorney fees.
Best Practices for Arkansas Landlords
- Conduct thorough move-in and move-out inspections - use a detailed checklist with dated, timestamped photos.
- Document everything in writing - especially any damage noted at move-in so you can differentiate pre-existing conditions from tenant-caused damage.
- Track the 60-day deadline - set calendar reminders immediately when a tenant gives notice to vacate.
- Keep pet deposits separate - clearly document pet-related damages apart from general wear and tear.
- Mail the statement via certified mail - to create proof of delivery.
Frequently Asked Questions
▶What are the Arkansas security deposit rules and return deadlines?
Arkansas has specific rules governing how much landlords can charge for security deposits, how deposits must be held, and the deadline for returning deposits after a tenant moves out. Landlords must provide an itemized statement of any deductions made from the deposit. Failure to comply with deposit return deadlines can result in penalties and the forfeiture of the landlord's right to claim deductions.
▶What are the Arkansas landlord-tenant laws every property owner should know?
Arkansas is widely considered one of the most landlord-friendly states in the country. Its laws place significant responsibility on tenants and grant landlords broad discretion in setting lease terms. However, the landmark Act 1052 of 2021 introduced implied habitability standards, significantly updating the legal legal environment for rental properties first entering a lease after November 1, 2021. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the Arkansas eviction process and how long does it take?
The Arkansas eviction process requires landlords to provide written notice to tenants before filing a court action. The type and length of notice depends on the reason for eviction — typically shorter for non-payment of rent and longer for lease violations or no-fault terminations. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in Arkansas. The full court process varies but typically takes several weeks.
Read the complete guide▶What are the Arkansas rent increase laws and caps for landlords?
Arkansas has specific rules governing when and how landlords can increase rent. During a fixed-term lease, rent generally cannot be increased unless the lease explicitly allows it. For month-to-month tenancies, landlords must provide proper written notice before an increase takes effect. Check whether Arkansas has any local rent control ordinances that may impose additional caps or requirements.
Read the complete guide▶What is the grace period for late rent in Arkansas?
Arkansas has specific rules regarding grace periods for late rent and the amount that can be charged as a late fee. Late fee provisions must be stated in the lease agreement, and fees must be reasonable. Check Arkansas state law and any applicable local ordinances for the exact grace period and late fee limits that apply to your rental property.
Read the complete guide▶What disclosures must Arkansas landlords provide to tenants?
Arkansas landlords must provide certain disclosures to tenants before or at the time of lease signing. Common required disclosures include lead-based paint hazards (for pre-1978 buildings, a federal requirement), the identity of the landlord or property manager, and any known material defects in the property. Additional state-specific disclosures may include flood risk, mold hazards, and environmental conditions.
Read the complete guide▶What are the Arkansas lease requirements for rental properties?
Arkansas recognizes both written and oral leases, though written leases are strongly recommended for terms longer than one year. Lease agreements should include the rent amount, payment due date, security deposit terms, maintenance responsibilities, and rules regarding entry, pets, and subletting. Certain lease clauses that waive tenant statutory rights may be void and unenforceable under Arkansas law.
Read the complete guide▶What are Arkansas landlord maintenance obligations and habitability standards?
Arkansas landlords must maintain rental properties in a condition that is fit for habitation and complies with applicable building, housing, and health codes. This includes maintaining structural integrity, plumbing, heating and cooling systems, electrical systems, and pest control. Tenants typically have the right to request repairs in writing, and if repairs are not made within a reasonable time, tenants may have legal remedies available.
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