Arkansas security deposit rules.
The Arkansas rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Ark. Code Ann. § 18-16-303 to -306 · Not legal advice
How much can be charged
Capped at two months’ rent for landlords who own six or more residential units. Smaller landlords are exempt from the statutory cap.
When it has to come back
The deposit, less any itemised deductions, must be returned within 60 days of termination of tenancy.
Interest
No interest is required on residential security deposits.
Where the money has to sit
No statutory segregation requirement.
What catches operators out
- Landlords with five or fewer units are exempt from these statutory rules, unless a third party manages the unit or collects rent for a fee.
- If the tenant doesn’t collect the deposit within 180 days, it is forfeited.
What this looks like with Standby in Arkansas.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Arkansas law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Arkansas. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.