Published 2026-09-27 · 8 min read

Arkansas Security Deposit Law 2026: Limits, Deadlines & Deductions

Arkansas caps security deposits at two months' rent, gives landlords 60 days to return the balance with an itemized written list, and punishes violations with up to twice the amount owed plus attorney's fees — under A.C.A. §§ 18-16-303 through 18-16-306. The big caveat: these rules apply only to landlords renting six or more dwellings. Every section below is from the Arkansas Code's security deposit subchapter.

The short version: If you rent six or more units, charge no more than two months' rent and return the deposit (or a written itemized list plus the balance) within 60 days of termination by first-class mail. Miss the window and the tenant can recover up to double what you owe, plus your opponent's attorney's fees. If you own five or fewer units, the subchapter doesn't cover you — but the 60-day habit is still the safe one.

The statute table

Limits: how much can you charge?

Two months' periodic rent — but only if you're covered by the statute at all. Section 18-16-303 exempts landlords who own five or fewer dwelling units (plus a few other narrow exceptions), a carve-out the Arkansas Attorney General's office confirms in its landlord-and-tenant guidance. Covered landlords must count everything toward the cap: pet deposits and additional fees are part of the two-month total, not stacked on top. On a $1,200-a-month unit, the most you may hold is $2,400 in total security, however you label the pieces.

Check your cap with the Security Deposit Max Checker.

The 60-day deadline, precisely

Within 60 days of termination of the tenancy, return the deposit — or apply it to accrued unpaid rent and damages and mail the tenant a written itemized notice together with the remaining balance. First-class mail to the tenant's last known address is deemed compliance, so keep addresses current in your files. Arkansas's 60-day window is generous, but the itemization must travel with the refund, not after it.

Find your exact date with the Security Deposit Deadline Finder.

When the clock actually starts

The statute runs the 60 days from termination of the tenancy — not from the day you finish cleaning, not from the day your contractor sends an invoice, and not from the day you get around to walking the unit. In an ordinary move-out, termination, surrender of possession, and your inspection all land within a few days of each other, so the practical rule is to treat the termination date as day zero and count forward from there. Write that date in the deposit file the day the keys come back. If a return is ever disputed, the termination date is the fact everything else turns on, and a landlord who reconstructed it from memory months later starts the argument from behind. The 60-day window feels long right up until a disputed deduction, a slow repair quote, and a forgotten forwarding address eat most of it — start the accounting in the first week, not the eighth.

A worked example

Say a tenancy terminates on Monday, March 2, 2026, on a unit renting for $1,200 a month with a $2,400 deposit. Counting 60 calendar days from March 2, the return deadline falls on Friday, May 1, 2026: by that date you must have mailed the itemized list of deductions, together with any balance due, by first-class mail to the tenant's last known address. Suppose the tenant left $350 of unpaid rent and $550 of damage beyond normal wear — $900 of legitimate deductions. Handled on time, you keep the $900 and return $1,500 with the itemized list, and the matter is closed. Handled late, the same $900 becomes the measure for the penalty in the next section. Work backwards from May 1: inspect and photograph in the first few days, price the repairs by the end of the second week, and put the letter in the mail with weeks to spare so a lost envelope or a wrong address cannot make you late.

Deductions and the itemized list

Deduct for unpaid rent and for damages from the tenant's noncompliance with the rental agreement — damage beyond normal wear and tear. You may withhold the entire deposit if damages or unpaid rent exceed it. Every deduction must appear on the written itemized list delivered within the 60-day window. No walkthrough is required by statute, but Arkansas is the only state with no implied warranty of habitability, so condition documentation is entirely on you: move-in and move-out photographs, dated and kept with the lease, are what turn an itemized list from an assertion into a record.

Build the letter with the Security Deposit Deduction Letter Generator.

Never blow Arkansas's 60-day clock: the itemization must travel with the refund, not after it — and miss the window and the tenant gets double damages plus attorney's fees under § 18-16-306. The Security Deposit Disposition & Deadline Tracker keeps your deposit register, deduction ledger, and deadline calendar in one formula-driven tracker ($14.95, one-time purchase).

Move-out compliance checklist

1. Fix the clock on day one. Record the termination date in the deposit file when the keys come back — the 60-day count runs from termination, and every later step is measured against it.

2. Confirm you are covered. Count your dwellings: six or more rented dwellings puts you inside §§ 18-16-303–306, with the cap, the deadline, and the penalty all applying.

3. Inspect within the first week. Walk the unit promptly and photograph every room before cleaning or repairs begin; the photos are what support each line of the itemized list.

4. Price deductions from records, not estimates. Tie every deduction to unpaid rent or documented damage beyond normal wear, using invoices, receipts, or your own dated repair log.

5. Itemize every dollar in writing. List each deduction and what it covers alongside the balance being returned — a single lump-sum figure does not satisfy § 18-16-305.

6. Mail it first-class, well before day 60. Send the itemized list and any amount due by first-class mail to the tenant's last known address inside the window, and keep the mailing receipt with the deposit file — that mailing is deemed compliance under § 18-16-305(b).

7. Keep the file after you mail. Retain the lease, photos, itemization, and proof of mailing together; the attorney's-fee exposure under § 18-16-306 means a tenant can afford to challenge a sloppy file long after move-out.

Interest and where the money sits

No interest requirement, no separate account, no receipt requirement. The statute imposes no rules on how you store the deposit. That freedom cuts both ways: there's nothing shielding you if your records are sloppy when a § 18-16-306 claim lands.

The penalty, spelled out

If you fail to return the deposit within the statutory window, the tenant can recover the property and money due, damages up to twice the amount owed, reasonable attorney's fees, and costs under § 18-16-306. The attorney's-fee provision is the real teeth — it makes small deposit disputes economically viable for tenants' lawyers, so a $900 fight can become a $3,000 judgment.

Run the worked example through that penalty: the $900 of legitimate deductions, returned late, exposes you to the $900 itself plus damages of up to $1,800 — before attorney's fees and costs are added. In other words, missing the deadline can cost more than double the amount you were entitled to keep, on deductions nobody disputed. Arkansas gives you twice as long as most states to get the return out; what it does not give you is a second chance once the 60 days have run.

Read the statute yourself

Everything on this page traces back to four short sections of the Arkansas Code, plus the Attorney General's plain-language summary of them. If a deadline or deduction is ever disputed, the statutory text — not a summary — is what controls:

• Landlord and Tenant Rights (Arkansas Attorney General) — the state's official plain-language guide, confirming the six-or-more-dwellings coverage rule, the two-month cap, and the 60-day return and itemization duties.
• A.C.A. Title 18, Subchapter 3 — Security Deposits (Justia) — the full text of §§ 18-16-303 through 18-16-306 in one place, useful for checking the exact wording before you cite the statute in a deduction letter.

FAQ

I own four rental houses. Does any of this apply to me?

No. The subchapter covers landlords renting six or more dwellings. You're outside the cap, deadline, and penalty scheme — but following the 60-day/itemization practice anyway is cheap protection.

Do pet deposits count toward the two-month cap?

Yes. No statute creates a separate pet-deposit allowance, and the total of all deposits can't exceed two months' rent.

Can I withhold the whole deposit?

Yes, if unpaid rent plus legitimate damages exceed the deposit — as long as you itemize everything in writing within 60 days.

Does the deposit earn interest?

No. Arkansas has no interest statute for security deposits.

What if the tenant moved without leaving an address?

Mail the notice and refund by first-class mail to the tenant's last known address. That mailing is deemed compliance under § 18-16-305(b).

Can the tenant recover more than the deposit?

Yes — up to twice the amount owed, plus attorney's fees and court costs. The penalty can exceed the deposit itself.

When exactly does the 60-day clock start?

At termination of the tenancy. Treat the day the tenancy ends and the keys come back as day zero, log that date in the deposit file, and count 60 calendar days forward — your cleaning and repair schedule does not move the deadline.

Do I have to hold the deposit in a separate account?

No. Arkansas imposes no separate-account, escrow, or receipt requirement for security deposits. Keeping clean records anyway is what protects you if a deduction is challenged under § 18-16-306.

More security deposit guides

• Security deposit laws by state
• Arizona security deposit law
• California security deposit law
• Alaska security deposit law
• Colorado security deposit law

Last verified: October 14, 2026. This is general information, not legal advice. Verify with a licensed Arkansas attorney before acting.