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Arkansas Security Deposit Laws: 60-Day Return Window Without Statutory Cap

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By GuacamoleBlog Editorial Team

Arkansas requires landlords to return security deposits within 60 days after lease termination and provide a written itemized statement of deductions. Arkansas caps deposits at two months’ periodic rent (§ 18-16-304), and landlords may deduct only for accrued unpaid rent and damages from the tenant’s noncompliance with the lease.

The Short Answer

Arkansas allows a 60-day window for landlords to return security deposits with an itemized statement of deductions. Deposits are capped at two months’ rent. If a landlord wrongfully withholds your deposit, § 18-16-306 lets you recover the money due plus damages of twice the amount wrongfully withheld, costs and reasonable attorney’s fees. The law is designed to ensure transparency and accountability in deposit handling.

Security Deposit Cap

Arkansas caps security deposits at two months’ periodic rent (Ark. Code Ann. § 18-16-304). The cap, the 60-day deadline and the penalty all come from the same subchapter, which does not apply to landlords who own five or fewer units and manage them without a paid third party (§ 18-16-303).

The 60-Day Return Deadline

Under Ark. Code Ann. § 18-16-305, landlords must return the security deposit within 60 days of termination of the tenancy, and any itemized deductions with the remainder within 60 days after termination and delivery of possession. This is a longer timeframe than many states, giving landlords more time to process deductions but still requiring prompt action. The landlord should send the deposit or statement to your last known address unless you provide alternative instructions in writing.

What Can an Arkansas Landlord Legally Deduct?

Arkansas law restricts deductions to actual damage beyond normal wear and tear and legitimate costs incurred due to tenant actions. Allowable deductions include:

Deductions must be itemized and, ideally, supported by receipts or repair estimates.

What Is Normal Wear and Tear in Arkansas?

Arkansas recognizes normal wear and tear as the reasonable deterioration that occurs from living in a rental property. This standard protects tenants from being charged for expected aging of the unit.

Examples of normal wear and tear:

Examples that are NOT normal wear and tear:

Penalties for Wrongful Withholding

If an Arkansas landlord fails to comply with the subchapter, § 18-16-306(a)(1) lets you recover the money due, damages equal to twice the amount wrongfully withheld, costs and reasonable attorney’s fees. You do not have to prove bad faith. Instead, the landlord can reduce the award to costs plus the sum withheld only by proving that the failure came from an error despite reasonable procedures or from a good-faith dispute over the amount (§ 18-16-306(a)(2)).

How to Get Your Deposit Back in Arkansas

  1. Keep your forwarding address current — Provide your landlord with a mailing address before or at move-out to ensure they can return your deposit or send the itemized statement.

  2. Document your unit’s condition — Take comprehensive photos and video of every room at move-out to establish that the unit was left in acceptable condition.

  3. Review the itemized statement — Within the 60-day period, you will receive the deposit or an itemized statement. Review each deduction against your documentation and the lease.

  4. Identify improper deductions — If deductions are for normal wear and tear, lack documentation, or exceed reasonable costs, gather evidence (photos, repair estimates, lease language).

  5. Send a written demand — If the landlord wrongfully withheld funds, send a certified letter requesting return of the deposit and explaining why the deductions are improper under state law.

  6. File a small claims lawsuit — If the landlord does not respond within a reasonable time, you can sue in Arkansas small claims court for the wrongfully withheld amount plus damages.

  7. Seek legal assistance — Arkansas Legal Services or a local tenant rights organization can help you understand your options and prepare your claim.

Key Statute

Ark. Code Ann. §§ 18-16-303 through 18-16-306 — Arkansas’s security deposit law establishing the 60-day return requirement, itemization rules, and tenant remedies for wrongful withholding.

Real Situations in Arkansas

Arkansas’s 60-day window is one of the longest in the nation, and many landlords in Little Rock and Fayetteville stretch that deadline to its limit while delaying the itemized statement. A common scenario: a tenant moved out on April 1, and the landlord didn’t send the itemized statement until May 25—within 60 days, but barely. The statement included $450 in “painting costs” without any invoice or documentation. When the tenant asked for proof, the landlord claimed the unit “needed new paint throughout.” Arkansas courts require that deductions be reasonable and documented, so without a receipt or contractor estimate, the tenant had strong grounds to dispute the charge. The tenant won in small claims court because the deduction lacked substantiation.

The second situation common in Arkansas centers on the lack of a statutory deposit cap. A landlord in Fort Smith charged $3,000 as a security deposit for a $900-per-month rental. While this is technically legal under Arkansas law, tenants can still dispute deductions that are excessive or unsupported. When the landlord tried to withhold $800 from the oversized deposit for normal wear and tear, the tenant was able to challenge this by arguing that the cap violation itself should make the landlord’s judgment suspect. The tenant recovered most of the deposit, and the excessive initial deposit became evidence of the landlord’s poor practices.

The third frequent dispute in Arkansas is over what the itemized statement must contain. The statute gives the landlord the same 60 days for the statement as for the refund (§ 18-16-305(a)(2)); there is no separate 30-day itemization rule. A tenant in Fayetteville received the deposit on day 50 with a note reading “Normal wear and tear deductions withheld.” That was on time, but normal wear and tear is not damage from the tenant’s noncompliance, and the vague note was not an itemization, so the tenant recovered the amount withheld, double damages, costs and fees.

Common Mistakes Arkansas Tenants Make

Waiting past day 60 to act. The landlord has 60 days for both the refund and the itemized statement. Send a written request for the statement around day 45 if nothing has arrived, keep proof of mailing, and be ready to send a demand letter on day 61.

Accepting deductions without documentation. If the landlord provides an itemized statement that includes charges like “general cleaning,” “painting,” or “repairs” without invoices, repair estimates, or receipts, immediately send a written objection requesting documentation. Arkansas law doesn’t explicitly require landlords to attach receipts, but courts heavily favor tenants when deductions are vague or unsupported.

Not challenging the size of the initial deposit. Arkansas caps deposits at two months’ rent (§ 18-16-304); if you were charged more, document this in writing when you move in. If the landlord later tries to justify excessive deductions by saying the deposit was large, you have a record showing the deposit size was questionable from the start.

This article is for informational purposes only and does not constitute legal advice. Always verify current rules at the source linked above or consult a licensed Arkansas attorney.


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