Security Deposit and Damage Deposit Rules in Arkansas

If you're renting a home or apartment in Arkansas, understanding how security deposits and damage deposits work can help protect your money and your rights. Arkansas law sets specific rules for what landlords can collect, how deposits must be handled, and when you should expect a refund. Knowing the difference between these types of deposits—and your rights—makes moving in or out much less stressful.

What’s the Difference Between a Security Deposit and a Damage Deposit?

In Arkansas, the term “security deposit” is most commonly used by law to describe money a landlord collects as financial protection, but renters often hear both “security deposit” and “damage deposit.” Here’s what each means:

• Security Deposit: Money held by the landlord to cover unpaid rent, damage beyond normal wear and tear, or other costs allowed by the lease or Arkansas law.
• Damage Deposit: While not a legally distinct category in Arkansas, “damage deposit” usually refers to part (or all) of the security deposit that may be used for repairs if the unit is left damaged beyond usual wear.

In Arkansas, both terms typically refer to a single deposit regulated under the same rules.

Arkansas Law: Deposit Limits and Protections

Arkansas has clear limits and rules on security deposits for most rental properties. These rules protect renters and help prevent disputes.

• Maximum Limit: Landlords cannot charge more than the equivalent of two months’ rent as a security deposit for most properties.
• Handling the Deposit: There is no specific law on where deposits must be kept (e.g., separate bank account), but the amount and its use are regulated.
• Deposit Return Timeline: After the lease ends and you move out, landlords have 60 days to return your deposit or give you an itemized list of deductions.
• Allowable Deductions: Deductions are only allowed for unpaid rent, damage beyond normal wear and tear, and other situations permitted by Arkansas statute or the rental agreement.

For all legal details, see the Arkansas Residential Landlord-Tenant Act (Arkansas Code § 18-16-301 to § 18-16-305)¹.

When and How to Request Your Deposit Back

To ensure a smooth deposit return, you should:

• Give your landlord your new address, in writing, when you move out. This is where your deposit (and any deductions list) will be sent.
• If the deposit isn’t returned within 60 days, you may be eligible for double damages in some cases, but you must first make a written demand.

If your deposit is not returned as required, you may consider sending a formal demand letter as a first step. There is no state-issued or mandatory form, but here is how the process works:

Relevant Official Forms and How to Use Them

• Arkansas Security Deposit Demand (No Official Form): While Arkansas does not provide a specific form, renters may send a written notice requesting return of the security deposit. Clearly state your name, former rental address, forwarding address, and the amount requested. If you do not receive your deposit within 60 days after giving notice, you may consider filing a claim in civil court.
• Small Claims Court Forms: To recover your deposit, you may need to file in district or small claims court. Use the Arkansas Small Claims Complaint Form. Example: If your landlord withholds your deposit past 60 days and will not respond to written requests, file this form at your local district court.

Who Handles Rental Deposit Disputes?

In Arkansas, rental disputes (including security deposit issues) are typically handled by the civil divisions of the Arkansas District Court. There is no separate state housing board or tribunal for residential tenancies, so renters must use the court system for unresolved cases.

What Happens If My Landlord Violates Deposit Rules?

If a landlord does not return your security deposit, or fails to provide an itemized deductions list, they may have to pay up to double the deposit. Legal action may be required, and filing must occur in the civil courts as noted above. Be sure to keep all receipts and correspondence.

FAQ: Arkansas Deposit Rules for Renters

1. How much security deposit can a landlord charge in Arkansas?
   Most landlords cannot charge more than two months’ rent as a security deposit.
2. Do I have to pay both a security deposit and a damage deposit?
   Usually, Arkansas landlords collect only one deposit which covers both security and damages. Confirm your lease to be sure.
3. How long does a landlord have to return my deposit?
   Landlords must return your deposit or mail an itemized deductions list within 60 days of your move-out date.
4. What should I do if my landlord does not return my deposit?
   First, request the deposit in writing. If you do not receive a response, you may file a claim in district or small claims court.
5. Can my landlord deduct for normal wear and tear?
   No. Deductions must only be made for damages beyond normal wear and tear, unpaid rent, or specific lease violations.

Need Help? Resources for Renters

• Arkansas Attorney General: Tenant & Landlord Resources – Consumer rights guidance
• Arkansas Courts Portal – District courts and small claims resources
• Arkansas State Legislature – Full legislation texts and updates
• Legal Aid of Arkansas – Free help for qualifying renters

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1. Arkansas Residential Landlord-Tenant Act, Arkansas Code §18-16-301 to §18-16-305
2. Arkansas Small Claims Court Official Forms

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