Arkansas Security Deposit Law: Return Deadline, Limits, and How to Get It Back

In Arkansas, a landlord generally has 60 days after your tenancy ends to return your security deposit, along with a written itemized statement of any deductions. The deposit itself is capped at the equivalent of two months' rent. These rules come from Arkansas's landlord-tenant security deposit statute (found in Arkansas Code Title 18, Chapter 16, Subchapter 3 — roughly Ark. Code Ann. § 18-16-301 and following). One feature that surprises many Arkansas renters: the law does not apply to every landlord. Because section numbers and figures change, treat the details below as general information and confirm the current Arkansas rules before you act.

How much can a landlord charge, and who is covered?

Arkansas limits a security deposit to no more than the equivalent of two months' rent. That ceiling does not include nonrefundable fees that are clearly labeled as fees rather than deposits, so read your lease carefully.

The biggest Arkansas-specific catch is the small-landlord exemption. The security deposit statute generally applies only to landlords who own more than five rental units (or who use a third party to manage their units for a fee). A landlord who personally owns five or fewer units and manages them without a paid agent may be exempt from the deposit cap and return deadline entirely. If your landlord is a small individual owner, you may have fewer statutory protections — your lease terms and general contract law become especially important.

• Deposit cap: two months' rent (for covered landlords).
• Exemption: owners of five or fewer units who manage them themselves may not be bound by the statute.
• Verify: ask how many units the landlord owns if you are unsure whether you are covered.

The 60-day return deadline and itemized statement

For covered landlords, the deposit — minus any lawful deductions — must be returned within 60 days after the tenancy ends. If the landlord keeps any portion, Arkansas requires a written itemized statement describing the reasons for the deductions, delivered along with whatever balance is owed.

To protect yourself, give the landlord a written forwarding address when you move out. If the deposit and statement are mailed to your last known address and returned undelivered, the landlord may, after a set period, be allowed to keep the funds. A simple letter or email with your new address can prevent that result.

What can and cannot be deducted

A landlord may deduct for unpaid rent and for actual damage to the unit beyond ordinary use. A landlord may not deduct for normal wear and tear — the gradual, expected deterioration that happens when a place is lived in responsibly.

• Usually deductible: unpaid rent, holes in walls, broken fixtures, pet damage, removing trash or abandoned property, cleaning filth well beyond normal use.
• Not deductible (normal wear and tear): faded paint, minor carpet wear in walkways, small nail holes, lightly worn appliances, and general aging from ordinary living.

Document everything. Take date-stamped photos or video at move-in and move-out, keep your signed move-in checklist, and save copies of any communications. This evidence is what wins disputes.

Interest on deposits

Arkansas does not require landlords to pay interest on residential security deposits or to hold them in a separate escrow account. Do not expect interest unless your lease specifically promises it.

Penalties for wrongful withholding

If a covered landlord wrongfully keeps your deposit, Arkansas law allows you to recover the amount owed, and a landlord who fails to comply in bad faith can be exposed to additional damages — in many cases up to double the amount wrongfully withheld, plus court costs and reasonable attorney's fees. Because the exact penalty and any fee-shifting provision can change, confirm the current statute or ask a lawyer before you rely on a specific multiplier.

How to sue in small claims court

Most deposit disputes in Arkansas are handled in the small claims division of the District Court. The small claims limit is generally $5,000, which covers the vast majority of deposit cases, and you usually do not need a lawyer to file.

• Send a written demand letter first, stating the amount owed and a deadline (often 7-14 days).
• If ignored, file a small claims complaint in the District Court for the county where the property sits.
• Bring your lease, move-in/move-out photos, the itemized statement (or proof none was sent), and your demand letter.

Legal aid or a tenant attorney is worth a call if the dollar amount is large, if the landlord is corporate or using an attorney, or if you are unsure whether the statute even covers your landlord. This article is general information, not legal advice; Arkansas law changes and some cities or counties may add their own rules, so confirm the current Arkansas statute or consult an Arkansas landlord-tenant attorney about your situation.