Overview
Arkansas's security deposit laws are governed by Ark. Code § 18-16-301 through § 18-16-306. While Arkansas does not have a comprehensive Uniform Residential Landlord and Tenant Act, its security deposit statutes provide a framework for deposit limits, allowable deductions, and return timelines.
This guide covers everything landlords and tenants need to know about security deposits in Arkansas.
Deposit Limits
Arkansas law sets the following security deposit limits:
- Maximum deposit: 2 months' rent
- Pet deposits: Not specifically addressed by the statute, but generally considered part of the total security deposit subject to the two-month cap
- Nonrefundable fees: The statute does not explicitly address nonrefundable fees, so any amount collected as a security deposit is subject to the return requirements
Landlords are not required by statute to hold the deposit in a separate account or to pay interest on the deposit.
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed through the date of termination or the date the tenant vacates
- Cleaning: Costs to restore the unit to the condition it was in at the beginning of the tenancy, minus normal wear and tear
- Damage beyond normal wear and tear: Costs to repair damage caused by the tenant, household members, or guests
- Other lease obligations: Costs arising from the tenant's failure to comply with lease terms (such as failure to return keys or failure to properly dispose of trash)
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls from everyday living
- Small nail holes from hanging pictures or decorations
- Carpet wear from regular foot traffic
- Slight fading of paint from sunlight exposure
- Minor wear on fixtures from regular use
Damage beyond normal wear and tear includes:
- Large holes in walls, doors, or ceilings
- Stained, burned, or torn carpet
- Broken windows, fixtures, or appliances
- Pet damage (stains, scratches, odors, chew marks)
- Excessive filth or debris beyond normal cleaning
Return Timeline
Arkansas landlords must return the security deposit within 60 days of the termination of the tenancy. The landlord must provide:
- The remaining deposit amount (after lawful deductions)
- An itemized written statement describing each deduction and the corresponding amount
The statement and refund must be mailed or delivered to the tenant's last known address or forwarding address. If the tenant does not provide a forwarding address, the landlord should mail the deposit and statement to the tenant's last known address.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit with a specific deadline
- File a claim in Small Claims Court (up to $5,000 in Arkansas)
- File a civil action in district court for amounts exceeding the small claims limit
If the landlord fails to return the deposit or provide the itemized statement within 60 days, the landlord may forfeit the right to withhold any portion of the deposit. A landlord who willfully fails to return the deposit may be liable for the full deposit amount plus any damages the tenant proves in court.
Landlords should keep documentation of the property's condition at move-in and move-out, including photographs and signed inspection reports, to support any deductions from the deposit.