States/Arkansas/Security Deposit
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Arkansas Security Deposit Rules (2026)

Arkansas Code §§ 18-16-301 through 18-16-306 regulate covered residential security deposits. The framework includes a two-month cap, a 60-day return/itemization rule, a small-owner exemption with an important third-party-management exception, and statutory remedies for wrongful withholding.

Last reviewed: August 30, 20263 official sources cited
Maximum2 months’ periodic rent

For landlords covered by the subchapter.

Return / itemization60 days

Act 559 changed the prior 30-day period to 60 days.

Small-owner exemption5 or fewer units

But not when management/rent collection is performed by a third party for a fee.

Wrongful withholding2× amount wrongfully withheld

Subject to the good-faith/error limitation in § 18-16-306.

What to preserve

  • Lease and security-deposit receipt.
  • Who owns the property and how many covered units are owned.
  • Whether a third-party property manager collects rent or manages the unit for a fee.
  • Tenancy termination and possession-return dates.
  • Itemized written notice and refund.
  • Mailing envelope, address and delivery records.

Why coverage comes first in Arkansas

Arkansas has a statutory exemption for certain small individual/family ownership structures with five or fewer dwelling units, but the exemption does not apply when management, including rent collection, is performed by third persons for a fee. A property-management-company rental can therefore require a different coverage analysis than a self-managed small landlord.

Arkansas coverage can depend on ownership size and third-party management. Educational information only.

Official sources

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