Short answer: Arkansas security deposit law applies only to landlords who rent six or more dwellings, and those landlords may not charge more than two months’ rent as a deposit, according to the Arkansas Attorney General summarizing Ark. Code Ann. §§ 18-16-301 to -306. A covered landlord must return the deposit, or give you a written itemized list of charges withheld, within 60 days after you vacate. Under § 18-16-306(a)(1), as shown on the state’s official public-access code portal, a tenant of a covered landlord can recover the money due plus twice the amount wrongfully withheld, costs and reasonable attorney’s fees. The doubling does not apply if the landlord proves the error happened despite procedures reasonably designed to prevent it (§ 18-16-306(a)(2)). See our Arkansas security deposit lawsuit guide for how to sue.
The size of your landlord is the first question to answer in Arkansas, before you count a single day. A tenant renting a duplex from someone who owns three houses may fall outside the deposit statute altogether, while a tenant in a 200-unit complex has the full protection of the cap and the 60-day rule. Here is what the official sources confirm, and where to look for the rest.
Arkansas security deposit law quick reference
| Rule | Arkansas | Statute |
|---|---|---|
| Who is covered | Landlords who rent six or more dwellings | §§ 18-16-301 to -306 (AG summary) |
| Deposit limit | Two months’ rent | § 18-16-304 (AG summary) |
| Return deadline | 60 days after you vacate | § 18-16-305 (AG summary) |
| Itemized statement | Written, itemized list of charges withheld, within 60 days | § 18-16-305 (AG summary) |
| Interest / separate account | Not addressed in the AG summary | AG guide |
| Penalty | Set by § 18-16-306; text not available on a free official site | Arkansas General Assembly |
| Small claims limit | $5,000 | Arkansas Judiciary, District Courts |
Step one: is your landlord covered?
The Attorney General’s landlord and tenant guide states plainly that the security deposit law “applies only to landlords who rent six or more dwellings.” If your landlord owns or rents out five or fewer, the statutory cap and 60-day deadline described here may not apply, and your rights come mainly from your lease and general contract law.
How do you find out? Ask the landlord in writing how many rental dwellings it owns or manages. County property records can also show other parcels in the same owner’s name. A management company that handles many units for an owner is worth asking about too, because the number of dwellings, not the type of building, is what the AG guide describes.
The two-month cap
For covered landlords, the AG guide says you “cannot be charged in excess of two months’ rent,” and gives the example that a $500 rent supports a deposit of no more than $1,000. The guide does not say whether pet deposits or prepaid rent count toward that limit, so if a landlord is stacking several charges, ask it to label each one in writing and keep that record.
The AG summary does not mention a separate bank account, interest on deposits, or a bank disclosure. We found no official source stating such a rule for Arkansas, so do not count on interest.
The 60-day return rule and what can be deducted
Under the AG’s reading of the statute, a covered landlord “must return your security deposit within 60 days” after you move out. If it keeps any part of the money, it must give you “a written, itemized list of the charges withheld within 60 days of the time you vacate.”
Two kinds of deductions are allowed in the AG summary: the cost to repair damage to the dwelling, and past-due rent. A landlord may keep the whole deposit if the damage or unpaid rent exceeds it. The summary does not define normal wear and tear, but the deduction it describes is for “damages made to the dwelling,” which is narrower than general cleaning or routine aging. Our wear and tear guide explains the usual line between the two.
Because the 60 days run from when you vacate, write down your move-out date and get a dated receipt or email when you return the keys. Give a forwarding address in the same message so the list and refund have somewhere to go. Our deadline checker can mark day 60.
The move-in defect form under the 2021 habitability law
Arkansas adopted minimum housing standards in Act 1052 of 2021, which added § 18-17-502 on implied residential quality standards. That act gives landlords a reason to hand you a move-in form, and gives you a reason to fill it out carefully.
Under the act, a landlord is treated as complying with the standards if, when possession becomes available, it gives you a written form to list defects and you either sign it without noting a defect or fail to return it within two business days. So the form is not just paperwork: leaving it blank can limit a later habitability claim. List every problem you see, return it within two business days, and keep a copy along with dated photos.
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Ending the lease over a habitability problem
The same act links the quality standards to your deposit. If your rent is current, you send written notice of the noncompliance by certified mail or another method allowed by the lease, and the landlord does not fix it within 30 calendar days, your remedy under the act is to terminate the lease without penalty and receive a refund of any security deposit recoverable under § 18-16-301 et seq. If the landlord did meet the standards, it may apply the deposit to damage to the premises. The act also says you may not withhold or offset rent over a habitability dispute.
Worked example: Dana in Little Rock
Dana rents a $900-a-month apartment in a 120-unit complex, so her landlord is covered. Two months’ rent is $1,800, and her $1,350 deposit is within the cap. She returns the keys on August 15 and emails her forwarding address.
Counting 60 days from August 15 gives October 14. On October 1 the manager emails an itemized list: $275 to replace a door Dana’s dog scratched through, and $150 for “repainting” a unit she lived in for four years. Dana should receive at least $925 now. She can dispute the $150 as ordinary aging rather than “damages made to the dwelling,” and if the landlord will not budge, file for $150 in small claims. Had the landlord sent nothing by October 14, the full $1,350 would be overdue.
Taking a deposit dispute to court
Begin with a written demand. State that the landlord rents six or more dwellings, quote the AG guide’s 60-day and itemization rules, list what you dispute, and give a date to pay. Our demand letter template can help.
If that fails, the small claims division of Arkansas District Court hears matters where the amount in controversy does not exceed $5,000, according to the Arkansas Judiciary. The court describes it as a forum for people to represent themselves, with informal trials and relaxed rules of evidence. Larger contract and property claims, up to $25,000, go to the regular district court civil docket. See our walkthrough on suing a landlord in small claims.
Before you file, read § 18-16-306 itself. You can reach the official Arkansas Code from the Arkansas General Assembly site, or ask a legal aid office or the courthouse law library for a printed copy. That section sets what a tenant can recover beyond the deposit itself.
Frequently Asked Questions
My landlord owns only three rental houses. Does the 60-day rule apply?
Probably not under the deposit statute. The Attorney General’s guide says the law applies only to landlords who rent six or more dwellings. Check your lease for its own deposit terms, which still bind the landlord as a contract.
Can an Arkansas landlord keep my deposit for unpaid rent?
Yes. The AG summary allows deductions for past-due rent as well as repair costs for damage, and the landlord may keep the entire deposit if those amounts exceed it. Any amount withheld must appear on a written, itemized list within 60 days.
Do I have to sign the move-in condition form?
You do not have to, but under Act 1052 of 2021 a form you sign without listing defects, or fail to return within two business days, can show the landlord met the quality standards. Write down every defect before signing.
If I end my lease because the landlord will not make repairs, do I get my deposit back?
Under § 18-17-502 as added by Act 1052, a tenant who is current on rent, gives proper written notice, and sees no fix within 30 days may terminate without penalty and receive a refund of the recoverable deposit. Deductions for actual damage can still apply.
Your next step is to confirm, in writing, how many dwellings your landlord rents, because that decides whether the 60-day rule protects you. This page is general information, not legal advice; for help with your case, use the LSC legal aid finder. You can also compare neighboring Tennessee.