Overview
Security deposits in Arkansas serve as financial protection for landlords while ensuring tenants are treated fairly. The state has specific regulations governing how these deposits are collected, stored, and returned.
Under Arkansas Code Title 18, Chapter 16, landlords must comply with strict security deposit rules. Violations can lead to penalties, including legal action from tenants.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Arkansas Code § 18-16-301 to § 18-16-305
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Landlords cannot charge more than two months’ rent as a security deposit.
Storage requirements: Arkansas law does not require landlords to hold security deposits in a separate or interest-bearing account.
Tenant notification: Landlords are not obligated to disclose where the deposit is being held.
Law Reference: Arkansas Code § 18-16-304
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 60 days of move-out.
Permissible deductions: Landlords may withhold portions of the deposit for:
Unpaid rent
Damages beyond normal wear and tear
Costs associated with breaking the lease
What landlords cannot deduct:
Routine cleaning
General maintenance
Normal wear and tear (e.g., minor carpet wear, small nail holes)
Itemized statement required: If deductions are made, landlords must provide an itemized statement within the 60-day timeframe.
Law Reference: Arkansas Code § 18-16-305
3. Interest Payments & Documentation Requirements
Interest payments: Arkansas law does not require landlords to pay interest on security deposits.
Move-in condition report: While not explicitly required, landlords should document the unit’s condition at move-in.
Tenant review period: Tenants are encouraged to review and document the unit’s condition to prevent disputes.
Failure to provide documentation: If landlords do not provide an itemized list of damages, they may be required to return the full deposit.
Law Reference: Arkansas Code § 18-16-305
4. Penalties for Mishandling Security Deposits
Arkansas imposes penalties on landlords who fail to comply with security deposit laws:
Failure to return the deposit within 60 days → Landlord may forfeit the right to withhold any portion of the deposit.
Failure to provide an itemized statement → Tenant may take legal action for full deposit recovery.
Law Reference: Arkansas Code § 18-16-305
Key Takeaways
Security deposits cannot exceed two months’ rent.
Landlords do not have to store deposits in a separate account or pay interest.
Deposits must be returned within 60 days, with an itemized statement if deductions apply.
Only specific deductions are allowed—normal wear and tear cannot be charged.
Non-compliance can result in forfeiture of the right to withhold any portion of the deposit.
By understanding and following Arkansas security deposit laws, landlords can avoid costly legal issues, and tenants can ensure their rights are protected.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
