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.