| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and late fees
Costs of damage Costs due to noncompliance with lease |
| Return Deadline | 60 days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x Amount Due + Court Costs + Attorneys’ Fees |
For laws on security deposit collections and holdings in Arkansas, click here.
Some cities and counties may have regulations which are different than those presented here. Always check local laws.
Security Deposit Deductions in Arkansas
In Arkansas, the following things can be deducted from security deposits:
- Unpaid rent and late fees
- Costs of damage excluding normal wear and tear
- Costs due to noncompliance with the lease agreement
Most states, such as Arkansas, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What Is Considered Normal Wear in Arkansas?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Arkansas?
Yes, landlords can charge for replacing the carpet if it is damaged beyond ordinary wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Arkansas?
Yes, landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Arkansas?
Arkansas law allows landlords to charge for cleaning if the tenant causes damage that requires cleaning or fails to complete their cleaning responsibilities outlined in the lease agreement.
Can the Landlord Charge for Painting in Arkansas?
Arkansas landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Can a Security Deposit Be Used for Last Month’s Rent in Arkansas?
Arkansas law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Returns in Arkansas
Landlords must return a security deposit by first-class mail with a written statement of deductions, if any, to the tenant’s last known address no later than 60 days after the lease term ends and the tenant vacates the rental unit.
How Long Do Landlords Have to Return Security Deposits in Arkansas?
Arkansas landlords have 60 days after the lease term ends and the tenant vacates the rental unit to return any unused portion of the security deposit. However, some landlords that own five or fewer units are exempt from the security deposit rules.
Rental units are exempt from these laws if both of the following are true:
- The total number of rental units the landlord owns collectively with their immediate family and their companies is five or fewer rental units
- The landlord does not use a management service to rent out units, including rent collection services
Do Landlords Owe Interest on Security Deposits in Arkansas?
Unlike in some states, such as New Jersey, landlords in Arkansas do not owe interest on security deposits.
How Do Landlords Give Notice?
Written notice must be sent by first-class mail to the tenant’s last known address and must include the amount of the security deposit due, if any, to the tenant, along with a written statement of deductions.
If the notice is returned to the landlord and the tenant cannot be found with reasonable effort, the security deposit becomes the property of the landlord 180 days after the date the notice was first mailed.
Security Deposit Disputes in Arkansas
If landlords do not return the security deposit within the 60-day period, tenants can file for the return of the portion of the security deposit wrongfully withheld. The tenant may also recover, as damages, twice the amount wrongfully withheld plus court costs and attorneys’ fees.
Tenants can also take legal action against a landlord for:
- Failure to provide written notice when deductions are made
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Arkansas?
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $5,000. If the amount is greater, the tenant must file a civil case in District Court.
A small claims case must be filed within 3 or 5 years depending on whether the lease agreement was oral or written. An attorney is not permitted. Cases are filed in the Small Claims Court for the county where the property is located or where the defendant lives. The filing fee varies by court but is typically $65 plus the cost of service.
Sources
- 1 Ark. Code § 18-16-305
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(a)(1) Within sixty (60) days of termination of the tenancy, property or money held by the landlord as security shall be returned to the tenant.
(2) However, the money may be applied to the payment of accrued unpaid rent and any damages which the landlord has suffered by reason of the tenant’s noncompliance with the rental agreement, all as itemized by the landlord in a written notice delivered to the tenant, together with the remainder of the amount due sixty (60) days after termination of the tenancy and delivery of possession by the tenant.
(b)(1) The landlord shall be deemed to have complied with subsection (a) of this section by mailing via first class mail the written notice and any payment required to the last known address of the tenant.
(2) If the letter containing the payment is returned to the landlord and if the landlord is unable to locate the tenant after reasonable effort, then the payment shall become the property of the landlord one hundred eighty (180) days from the date the payment was mailed.
Source Link - 2 Ark. Code § 18-16-306
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(a)(1) If the landlord fails to comply with this subchapter, the tenant may recover:
(A) The property and money due him or her;
(B) Damages in an amount equal to two (2) times the amount wrongfully withheld;
(C) Costs; and
(D) Reasonable attorney’s fees.
(2) However, the landlord shall be liable only for costs and the sum erroneously withheld if the landlord shows by the preponderance of the evidence that his or her noncompliance:
(A) Resulted from an error which occurred despite the existence of procedures reasonably designed to avoid such errors; or
(B) Was based on a good faith dispute as to the amount due.
(b) This section does not preclude the landlord or tenant from any other relief to which either may be lawfully entitled.
Source Link - 3 Ark. Code § 18-16-303
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(a) This subchapter shall not apply to dwelling units owned by an individual, if the individual, his or her spouse and minor children, and any and all partnerships, corporations, or other legal entities formed for the purpose of renting dwelling units and of which they are officers, owners, or majority shareholders own, or collectively own, five (5) or fewer dwelling units.
(b) This exemption does not apply to units for which management, including rent collection, is performed by third persons for a fee.
Source Link - 4 AR Sup. Ct. Admin. Order 18(3)(b)
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The district court shall have original jurisdiction within its territorial jurisdiction over the following civil matters:
…
(b) Concurrent with the circuit court in matters of contract where the amount in controversy does not exceed the sum of five thousand dollars ($5,000), excluding interest;
Source Link
