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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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.
Security Deposit Limits
Official Law Citation: The rules and regulations outlined on this page are strictly configured under the official Arkansas Code § 18-16-304 - Security Deposits. Landlords must always ensure their lease agreements directly adhere to this state code.
Standard Limits (6+ Units or Corporate Landlords)
Landlords who rent six or more dwelling units or who operate as a corporation are subject to statutory deposit limits:
Small Landlords (Fewer Than 6 Units)
Landlords who own fewer than six residential dwelling units and do not operate as a corporation 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, but the deposit must comply with the Fair Housing Act - meaning no pet deposit can be charged for trained service animals or emotional support animals.
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 Security Deposit Return Process in arkansas
Tenant Vacates Property
The tenant moves out and provides a valid forwarding address to the landlord. The 60-day clock begins at this point.
Conduct Move-Out Inspection
The landlord inspects the property and documents any damages beyond normal wear and tear with photos and a detailed checklist.
Calculate Deductions
The landlord itemizes all legitimate deductions including unpaid rent, damages beyond normal wear and tear, and cleaning costs to restore the unit.
Mail Itemized Statement and Balance
Within 60 calendar days, the landlord must mail the remaining deposit balance along with a written itemized list of deductions to the tenant’s forwarding address.
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.
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