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    Arkansas Security Deposit Law

    An Arkansas landlord may collect up to 2 months' rent as a security deposit, with 1 exception to that limit. It must refund the deposit, or an itemized list of deductions, within 60 calendar days after the lease ends.

    Last verified: · Researched and cited by MakeLease · not yet attorney-reviewed

    Arkansas deposit rules

    Arkansas security deposit rules at a glance
    RuleWhat the law says
    Deposit limit2 months' rent (with exceptions)Ark. Code Ann. § 18-16-304; § 18-16-303 (exemption) — summarized by the Arkansas Attorney General, Act 459 of 2025, §§ 1-2 (local preemption 'except as provided under § 18-16-304')
    Return deadline60 days after the lease endsArk. Code Ann. § 18-16-305 — summarized by the Arkansas Attorney General
    Itemized deductionsRequiredArk. Code Ann. § 18-16-305(a)(2) — summarized by the Arkansas Attorney General
    Interest on depositNot required statewideArk. Code Ann. §§ 18-16-301 to -306 (silent on interest) — summarized by the Arkansas Attorney General

    Maximum deposit

    Landlords covered by the Residential Security Deposit law may not demand or receive a deposit above two months' rent (Ark. Code Ann. § 18-16-304). (Ark. Code Ann. § 18-16-304; § 18-16-303 (exemption) — summarized by the Arkansas Attorney General, Act 459 of 2025, §§ 1-2 (local preemption 'except as provided under § 18-16-304'))

    Two months' periodic rent; the deposit subchapter does not apply to individual owners with five or fewer units who manage them themselves

    Exceptions

    • Individual owner (with spouse, minor children and their rental entities) owns 5 or fewer dwelling units and does not use a paid third-party manager (subchapter does not apply) → no limit

    Return deadline

    Landlords must return the deposit, or the balance with a written itemized notice of deductions, within 60 days after the tenancy ends (Ark. Code Ann. § 18-16-305(a)). (Ark. Code Ann. § 18-16-305 — summarized by the Arkansas Attorney General)

    Itemized statement of deductions

    A landlord who deducts unpaid rent or damages must itemize them in a written notice delivered to the tenant with any balance (Ark. Code Ann. § 18-16-305(a)(2)). (Ark. Code Ann. § 18-16-305(a)(2) — summarized by the Arkansas Attorney General)

    Interest on the deposit

    Arkansas law does not require landlords to pay interest on security deposits (Ark. Code Ann. §§ 18-16-301 to -306 are silent). (Ark. Code Ann. §§ 18-16-301 to -306 (silent on interest) — summarized by the Arkansas Attorney General)

    Penalty for wrongful withholding

    A landlord who wrongfully withholds a deposit can owe the tenant twice the amount withheld plus attorney's fees, unless it proves a bona fide error or good-faith dispute (Ark. Code Ann. § 18-16-306). (Ark. Code Ann. § 18-16-306 — Arkansas Code is officially published via LexisNexis; Attorney General overview of the deposit law)

    Local rules: Cities and counties may not regulate rent, rental application fees or rental deposits for private residential property (Ark. Code §§ 14-16-601, 14-54-1409, as amended by Act 459 of 2025).

    More Arkansas deposit rules

    Where the deposit is held

    Arkansas's security-deposit subchapter does not require an escrow or separate account and does not bar commingling (Ark. Code Ann. §§ 18-16-301 to -306). (Ark. Code Ann. §§ 18-16-301 to -306 (silent) — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-305 (FindLaw copy, current as of Mar. 28, 2024))

    Receipt or written notice of the deposit

    Arkansas does not require landlords to issue a deposit receipt or say which bank holds the deposit (Ark. Code Ann. §§ 18-16-301 to -306). (Ark. Code Ann. §§ 18-16-301 to -306 (silent) — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-305 (FindLaw copy, current as of Mar. 28, 2024))

    Move-in condition checklist

    No Arkansas statute calls for a move-in inspection or condition checklist before deposit deductions (Ark. Code Ann. §§ 18-16-301 to -306). (Ark. Code Ann. §§ 18-16-301 to -306 (silent) — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-305 (FindLaw copy, current as of Mar. 28, 2024))

    Pet deposits

    Arkansas has no pet-specific deposit rule; any deposit 'however denominated' simply counts toward the two-month cap for covered landlords (Ark. Code Ann. § 18-16-304). (Ark. Code Ann. § 18-16-304 — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-304 (FindLaw copy))

    Nonrefundable fees

    Arkansas law does not address nonrefundable fees, and since 2025 cities and counties may not regulate application fees or deposits either (Ark. Code Ann. §§ 18-16-301 to -306; 14-54-1409). (Ark. Code Ann. §§ 18-16-301 to -306 (silent) — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-305 (FindLaw copy, current as of Mar. 28, 2024), Act 459 of 2025, §§ 1-2 (Ark. Code §§ 14-16-601, 14-54-1409))

    Small-landlord exemptions

    An individual who owns five or fewer rental units, counting those of a spouse, minor children and their companies, is outside Arkansas's deposit law unless a paid third party manages the units (Ark. Code Ann. § 18-16-303). (Ark. Code Ann. § 18-16-303 — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-303 (FindLaw copy, current as of Mar. 28, 2024))

    The whole deposit subchapter (cap, 60-day return, itemization, double damages) does not apply to units owned by an individual who, with spouse, minor children and their rental entities, owns five or fewer units, unless a third party manages or collects rent for a fee.

    Deposit alternatives and installments

    Arkansas has no statute on surety bonds, deposit insurance, waiver fees or deposit installments (Ark. Code Ann. §§ 18-16-301 to -306). (Ark. Code Ann. §§ 18-16-301 to -306 (silent) — summarized by the Arkansas Attorney General, Ark. Code Ann. § 18-16-305 (FindLaw copy, current as of Mar. 28, 2024))

    How Arkansas compares

    Arkansas shares its 2-month cap with 10 other states among the 50 states and DC. 18 states set a lower limit. Its 60 days return window: 46 faster, none longer.

    Arkansas and neighboring states: security deposit rules
    StateDeposit limitReturn deadlineItemized deductions
    Arkansas2 months' rent (with exceptions)Ark. Code Ann. § 18-16-304; § 18-16-303 (exemption) — summarized by the Arkansas Attorney General60 days after the lease endsArk. Code Ann. § 18-16-305 — summarized by the Arkansas Attorney GeneralRequiredArk. Code Ann. § 18-16-305(a)(2) — summarized by the Arkansas Attorney General
    LouisianaNo state cap30 days after the lease endsRequired
    MississippiNo state cap45 days after the triggering eventRequired
    Missouri2 months' rent (with exceptions)30 days after the lease endsRequired
    OklahomaNo state cap45 days after the tenant's written requestRequired
    TennesseeNo state capNo fixed deadlineRequired
    TexasNo state cap30 days after move-outRequired

    Arkansas deposit return deadline calculator

    Example: Deadline: Wednesday, April 1, 2026

    60 calendar days after the lease ends on Saturday, January 31, 2026.

    Weekend and holiday flags use the federal holidays in 5 U.S.C. § 6103; Arkansas state holidays are not checked.

    Maximum deposit in Arkansas

    Example: $2,000 a month

    Maximum deposit: $4,000 (2 months' rent × $2,000; Ark. Code Ann. § 18-16-304; § 18-16-303 (exemption) — summarized by the Arkansas Attorney General, Act 459 of 2025, §§ 1-2 (local preemption 'except as provided under § 18-16-304'))

    Where an exception applies

    • Individual owner (with spouse, minor children and their rental entities) owns 5 or fewer dwelling units and does not use a paid third-party manager (subchapter does not apply): no limit

    Put the deposit terms in a lease

    Write a deposit of no more than 2 months' rent and the 60-day return window into an Arkansas lease. Creating it is free with no card; an account is needed to save or e-sign.

    Create an Arkansas lease

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