Arkansas Security Deposit Law: Limits, Deadlines, and Penalties
What Arkansas landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Arkansas?
Arkansas caps security deposits at two months' rent under Ark. Code § 18-16-304. The cap and the rest of the security deposit subchapter do not apply to landlords who own five or fewer rental units, unless those units are managed by a third party for a fee (§ 18-16-303). Exempt small landlords face no statutory limit.
Arkansas has no separate pet deposit statute; the two-month cap for covered landlords (six or more units) applies to security deposits generally, so refundable pet deposits are best treated as counting toward it.
When must the deposit be returned?
The landlord must return the deposit within 60 days after termination of the tenancy and delivery of possession by the tenant. If the tenant leaves no forwarding address and does not claim the deposit within 180 days after the landlord mails it to the tenant's last known address, the money becomes the landlord's property.
If the landlord withholds any amount for unpaid rent or damages, the withholding must be itemized in a written notice delivered to the tenant within the same 60-day window. There is no statutory receipts threshold.
What happens if a landlord misses the deadline?
Under Ark. Code § 18-16-306, a tenant can recover the amount due plus damages of twice the amount wrongfully withheld, court costs, and reasonable attorney's fees. A landlord who proves a good-faith error or good-faith dispute is liable only for the sum erroneously withheld and costs.
Interest and holding requirements
Arkansas does not require landlords to pay interest on security deposits, and no major Arkansas city imposes its own interest requirement.
No statutory requirement. Arkansas law does not require deposits to be kept in a separate account, escrow, or bond.
What Arkansas landlords get wrong
The five-or-fewer-units exemption is the defining feature of Arkansas deposit law: if you self-manage five or fewer units, the cap, deadline, and penalty statutes do not apply to you at all — but hiring a property manager or rent-collection service removes the exemption. Even exempt landlords should follow the 60-day return and itemization practice, since deposit disputes still go to small claims court under general contract law. Keep the tenant's forwarding address on file; the 180-day unclaimed-deposit rule only protects you if you actually mailed the refund to the last known address.
The law itself
Frequently asked questions
How much can a landlord charge for a security deposit in Arkansas?
Up to two months' rent, under Ark. Code § 18-16-304. The cap only applies to landlords who own six or more rental units or who use a paid third-party manager. If your landlord self-manages five or fewer units, no statutory cap applies, though one to two months' rent is standard market practice.
How long does an Arkansas landlord have to return a security deposit?
Sixty days after the tenancy ends and you deliver possession of the unit. Any deductions for unpaid rent or damage must be itemized in a written notice delivered within that same 60-day period. If you don't claim a mailed refund within 180 days, the money legally becomes the landlord's.
What can a landlord deduct from a security deposit in Arkansas?
Accrued unpaid rent and damages caused by your failure to comply with the rental agreement. Normal wear and tear is not deductible. Every deduction must appear in an itemized written notice sent within 60 days. If the landlord withholds money without proper itemization, you can sue for twice the amount wrongfully withheld.
What happens if an Arkansas landlord doesn't return the deposit in 60 days?
You can sue — usually in small claims court — for the amount owed plus double the amount wrongfully withheld, court costs, and attorney's fees under Ark. Code § 18-16-306. The landlord escapes the double-damages penalty only by proving the failure was a good-faith error or a genuine dispute over the amount due.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.