qira-insights-header-2

Arkansas Security Deposit Laws

Author: Kasee Godwin
Date: 10.11.2022

The security deposit amount that property owners in Arkansas can collect depends on the number of units they own and whether or not they use a manager to rent them out. The state of Arkansas clearly outlines security deposit limitations for property owners with more than six units. Here is a brief summary of Arkansas’s legislation around security deposit regulations for rental properties.

Is there a limit on how much the property manager/owner can charge for an application fee? If so, what is that amount?

There is no limit on the application fee amount in the state of Arkansas. Application fees are non-refundable.

What is the security deposit amount the landlord can collect?

As an Arkansas property owner, you can request a security deposit of up to two month’s rent to protect your property in the event of damages or unpaid rent. The security deposit limit does not apply if the landlord has less than six units and does not use a manager to rent them out.

Can the property manager/owner collect a fee for pets?

A pet deposit separate from the apartment security deposit is allowed in the state of Arkansas. Service pets are an exemption, and disabled persons with service pets do not have to pay an additional security deposit. However, if a service dog causes damages, the resident is still liable for Expenses incurred.

How does the security deposit need to be held?

Property owners in Arkansas are not obligated to deposit the security deposit in a separate account or in escrow

Is the property manager/owner required to tell the resident where the deposit is held?

Property managers in Arkansas do not have to tell residents where the security deposit is held.

Is the property manager/owner required to tell the resident what the interest rate on the account is (if applicable)?

Property owners in Arkansas are not required to tell residents what the interest on their security deposit it.

What can the property manager/owner deduct from the security deposit?

Property managers operating in the state of Arkansas may keep a portion of the security deposit to cover unpaid rent or damages that exceed normal wear and tear.

How long does the property manager/owner have to return the security deposit after the lease has ended?

In the state of Arkansas, if the lease is terminated with proper notice according to the rental agreement, the property owner must mail the written notice and return the security deposit remainder (after additional costs have been incurred) within 60 days from vacating the property alongside an itemized list of deductions, if applicable.

What penalties does the property manager/owner face if they do not return the security deposit on time?

Property owners in Arkansas that do return the security deposit within 60 days may be fined up to double the amount of the security charges plus court and attorney fees.

What is the process for the property manager/owner to claim the security deposit funds?

Property managers in Arkansas must return the security deposit via first class mail to the last known address of the renter. The vacating renter is responsible for providing this information to the property owner. If the letter is returned to the property owner and the property owner is unable to locate the tenant within 180 days, the unclaimed deposit may be forfeited.

Is the resident allowed to apply their security deposit towards the last month’s rent?

Renters may request to use the security deposit for their last months’ rent, however it is not mandatory for property owners to accept. In the event that a property owner accepts such an agreement, a written agreement must be made.

To summarize, property owners in Arkansas have clear legislation regarding how to manage security deposits for their units, depending on the number of properties they own and whether or not they use a management company. Property managers should up to date records about their property, specifically concerning damages incurred to their properties, and provide that information to renters upon lease termination.

Disclaimer & Sources:

Qira aims to keep this information as up-to-date as possible. The content provided here is for informational purposes and should not replace legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.

kasee-godwin-80x80

Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

Other news

decorative image of Qira's logo

Mitigating Rental Risks with Tenant Screening Reports

Tenant screening reports are an essential tool in evaluating whether or not a rental applicant is a good candidate, learn more about how to conduct these reports in the most effective and cost-saving way possible.

Author: Kasee Godwin
Date: 06.01.2023
decorative image of Qira's logo

5 Tips for Growth at a Property Management Conference

Learn 5 tips to maximize your professional growth at a property management conference this season!

Author: Kasee Godwin
Date: 05.30.2023
decorative image of Qira's logo

The Role of Artificial Intelligence in the Multifamily Housing Industry

Artificial Intelligence (AI) is becoming increasingly popular in the real estate industry, transforming how property managers and owners operate their properties.

Author: Kasee Godwin
Date: 05.25.2023
decorative image of Qira's logo

How to Write a Security Deposit Return Letter

Property managers who collect security deposits are always expected to send a security deposit return letter. This article outlines best practices when writing security deposit return letters.

Author: Kasee Godwin
Date: 05.22.2023
decorative image of Qira's logo

8 Tips for First-Time Renters: From Budgeting to Finding the Perfect Apartment

Renting an apartment for the first time can be daunting, but you can make the process smoother with the right tips. Here are 8 tips for first-time renters to help you navigate the process.

Author: Kasee Godwin
Date: 05.18.2023
decorative image of Qira's logo

How to Navigate Evolving Security Deposit Laws by State

Learn how can your property management company can thrive while state security deposit laws are evolving to create more rental affordability.

Author: Kasee Godwin
Date: 05.15.2023
decorative image of Qira's logo

Rent Reporting: a Game-Changer for Property Managers & Renters

Reporting rent to the major credit bureaus is not only great for renters--but can help property management as well by bringing in reliable renters.

Author: Kasee Godwin
Date: 05.08.2023

We are a financial services platform for property management

We are a financial services platform for property managers and residents. We help property managers and owners improve cash flow, reduce vacancies and avoid bad debt.

1-3