Arkansas Security Deposit Law, in Plain English

Arkansas's deposit statute begins with a question most tenants never think to ask: how many units does the landlord own? Below six — with no paid manager — none of the rules on this page apply. Above it, there's a two-month cap, a 60-day return, a 180-day forfeiture, and a double-damages penalty with a good-faith escape hatch. Here's how Ark. Code §§ 18-16-303 through 18-16-306 actually work, for both sides of the lease.

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60 daysDeadline after termination and delivery of possession to return the deposit or deliver an itemized notice with the balance
2 months' rentThe cap for covered landlords under § 18-16-304
6 unitsThe ownership threshold at which the statute applies, or any number if a paid manager is involved
180 daysAfter which a deposit mailed to the last known address and unclaimed becomes the landlord's
2x withheld + feesThe penalty, unless the landlord proves the error was procedural or a good-faith dispute

Six or more units, or a paid manager — otherwise, the lease is the law

Section 18-16-303 excludes from the entire subchapter any landlord who owns five or fewer dwelling units — unless those units are managed by a third party for a fee. The practical effect: a self-managing landlord with a couple of houses owes the tenant whatever the lease says and nothing more; a landlord with a six-plex, or any landlord using a paid property manager, owes everything below.

For covered landlords, the cap is two months' rent (§ 18-16-304). No interest, no separate account.

After move-out: 60 days to return or itemize

Within 60 days after termination of the tenancy and delivery of possession, a covered landlord must return the deposit or deliver a written itemized notice of the amounts applied and the reasons, together with the balance (§ 18-16-305). If the tenant left no forwarding address, the notice goes to the last known address.

Permitted deductions: accrued rent and damages the landlord suffered from the tenant's noncompliance with the lease — damage beyond normal wear and tear, cleaning, unpaid late fees, and rent owed because the tenant left without the required notice. Faded paint and normally worn carpet are the landlord's cost.

Then the 180-day rule: a deposit mailed to the tenant's last known address and unclaimed for 180 days becomes the landlord's property. A forwarding address, in writing, on move-out day is the only protection.

Sixty days to itemize — and a good-faith defense that depends on having a record.

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PropInspect is a documentation tool, not a compliance service or legal-advice product. Using PropInspect does not guarantee compliance with Arkansas law or a particular result in a deposit dispute.

When it goes wrong: double the withheld amount — unless the landlord proves good faith

Under § 18-16-306, a covered landlord who fails to comply owes the tenant the property and money due, damages of two times the amount wrongfully withheld, costs, and reasonable attorney's fees.

Arkansas then adds a safe harbor few states have. The landlord is liable only for costs and the erroneously withheld sum if the landlord proves, by a preponderance of the evidence, that the noncompliance resulted from an error despite procedures reasonably designed to avoid such errors, or from a good-faith dispute as to the amount due. In practice, that clause rewards landlords who can show a process — a documented inspection, an itemization with support — and strips the protection from landlords who simply kept the money.

Disputes go to the small claims division of the district court, which hears claims up to $5,000. Arkansas small claims is a self-representation forum, so both sides argue their own case. The winning file: the lease, proof of the landlord's unit count or paid management, the forwarding address, the 60-day notice or its absence, and dated room-by-room photos from both ends of the tenancy.

Sources and official texts

The official sources for this guide are the Arkansas Code Annotated, §§ 18-16-301 to 18-16-306 — read through the Code of Arkansas Public Access maintained by LexisNexis, the official publisher of the Arkansas Code; the Arkansas Attorney General's Landlord and Tenant Rights page; Legal Aid of Arkansas's security-deposit guide; and the Arkansas Judiciary's District Courts page, which covers the small claims forum.

Frequently asked questions

How long does a landlord have to return a security deposit in Arkansas?

60 days after the tenancy ends and you deliver possession — if the landlord is covered by the statute. Within that window the landlord must return the deposit or deliver a written itemized notice of deductions with the balance. Leave a forwarding address: a deposit mailed to your last known address and unclaimed for 180 days becomes the landlord's.

Does Arkansas's deposit law apply to my landlord?

Only if the landlord owns six or more rental units, or the property is managed by a third party for a fee. A self-managing landlord with five or fewer units is exempt from the cap, the 60-day deadline, and the penalties — for those rentals, the lease is the whole rulebook.

How much can a landlord charge for a security deposit in Arkansas?

A covered landlord may not demand more than two months' rent. There's no interest requirement and no rule on where the money is kept. Exempt small landlords have no statutory cap.

What can a landlord deduct from a deposit in Arkansas?

Unpaid rent and damages caused by your noncompliance with the lease — damage beyond normal wear and tear, cleaning, unpaid late fees, and rent owed because you left without the required notice — each itemized in the written notice. Ordinary aging of paint and carpet isn't deductible.

What happens if the landlord wrongfully keeps money or misses the deadline?

You may recover what's owed, plus damages of two times the amount wrongfully withheld, plus costs and reasonable attorney's fees. There's a catch: if the landlord proves the failure was an honest error despite reasonable procedures, or a good-faith dispute over the amount, the doubling and fees drop away and the landlord owes only the withheld sum and costs.

What is the 180-day rule?

If the landlord mails your deposit to your last known address and you don't claim it within 180 days, the money becomes the landlord's property. A written forwarding address on move-out day is what prevents it.

Does Arkansas require a move-in inspection or photos?

No. The subchapter has no checklist, walkthrough, or photo requirement. That leaves 'damage beyond normal wear and tear' to the evidence — and given the good-faith safe harbor, a landlord with dated photos and a tenant with dated photos are each in a far stronger position than one without.

Where do deposit disputes go in Arkansas?

The small claims division of the district court handles claims up to $5,000, and Arkansas small claims is a self-representation forum — attorneys generally don't appear. Bring the lease, proof of how many units the landlord owns or that a paid manager was involved, your forwarding address, the 60-day notice or proof none arrived, and dated move-in and move-out photos.

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PropInspect is a documentation tool, not a compliance service or legal-advice product. Using PropInspect does not guarantee compliance with Arkansas law or a particular result in a deposit dispute.

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