Arkansas is often described as the most landlord-friendly state in the US — but even here, security-deposit rules have specific statutory caps and return deadlines. Landlords with six or more rental units are subject to the Residential Landlord-Tenant Act of 2007. Before you sign, confirm whether this landlord is covered, check the deposit cap, and understand the 60-day return rule in Ark. Code § 18-16-305.
What is a Security Deposit?
Arkansas residential lease security deposits are governed by Ark. Code §§ 18-16-303 to 18-16-306, part of the Arkansas Residential Landlord-Tenant Act of 2007. The Act applies only to landlords owning six or more rental units. For covered landlords, deposits are capped at two months' rent. The landlord must return the deposit, or an itemized list of deductions and any balance, within 60 days of the tenancy ending. A landlord who refuses in bad faith is liable for double damages. Landlords with five or fewer units are governed by common law and lease terms.
Red flags to watch for
Ark. Code § 18-16-304 caps the deposit at two months' rent for covered landlords. Excess deposits are recoverable.
Ark. Code § 18-16-305 fixes 60 days from termination and delivery of possession. Extensions in the lease are unenforceable.
The 60-day rule runs from the tenant's forwarding-address notice. Leases should acknowledge this mechanism clearly.
Non-refundable fees should be separate from the security deposit. Combining them creates confusion and may violate the deposit cap.
Covered landlords must provide itemization of deductions. Waiver clauses are void as against public policy.
Arkansas allows some contractual flexibility, but the statutory deposit framework is not freely waivable for covered landlords.
Your legal rights
Arkansas tenants are protected by: the Arkansas Residential Landlord-Tenant Act of 2007 (Ark. Code §§ 18-17-101 et seq.) and the pre-existing security deposit statute (§§ 18-16-303 to 18-16-306); the Arkansas Deceptive Trade Practices Act (Ark. Code §§ 4-88-101 et seq.); the Fair Housing Act (42 U.S.C. § 3601 et seq.); and limited implied warranties under common law. Arkansas remains the only state without a statewide implied warranty of habitability for most residential leases, so lease language governs many defect issues. Deposit disputes can be filed in small-claims court (up to $5,000) or District Court. A tenant prevailing against a covered landlord for willful refusal can recover double the amount wrongfully withheld plus reasonable attorney's fees.
Questions to ask before you sign
- 1Does this landlord own six or more rental units, bringing the Act into play?
- 2Is the deposit capped at two months' rent, and is any portion labelled non-refundable?
- 3Where should I send my forwarding address at move-out?
- 4What is the procedure for the itemized deductions list?
- 5What repairs or deductions should I expect at end of tenancy?
- 6What is my remedy if the deposit is not returned within 60 days?
- 7What habitability obligations (if any) has the landlord agreed in writing?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.