Arkansas Tenant Screening Laws: What Landlords Can and Cannot Do
Arkansas is among the least-regulated rental states – no fee cap, a deposit cap only for larger landlords – but the FCRA and federal fair housing law still apply. Here is how to screen legally in 2026.
Tenant screening in Arkansas is governed lightly by state statute and almost entirely by federal law. Arkansas regulates the security deposit only for larger landlords, and says nothing about how you evaluate an applicant – which makes the federal Fair Credit Reporting Act and fair housing law the real rulebook, and a written, consistent process your best protection.
This guide covers what you may screen, what you can charge, and the deposit rules under section 18-16-304. If you are new to the mechanics, our overview of how to screen tenants step by step pairs well with the Arkansas-specific points below.
Video: a plain-language walkthrough of Arkansas tenant screening, application fees, deposits, and adverse action.
Key Takeaways: Arkansas Tenant Screening Laws
- No application-fee cap. Arkansas does not limit screening fees, but they must be reasonable and tied to the actual cost of the report.
- The two-month deposit cap is conditional. Under section 18-16-304 it applies to landlords who own more than five units or who hire a manager; small self-managed landlords are exempt.
- Return within sixty days with an itemized accounting of any deductions, for covered landlords.
- Federal law is the backbone. The FCRA governs the report and the federal Fair Housing Act governs who you approve.
What Arkansas Law Lets You Screen
Arkansas gives landlords very wide latitude to evaluate an applicant. With written permission you may obtain a consumer report covering credit, rental and payment history, employment and income, and public records such as criminal convictions and civil judgments, and you may decline applicants who fail your written standards.
Because Arkansas regulates so little of the process, consistency is the only real safeguard: write your criteria down and apply them identically to every applicant. Our guide to the minimum credit score for renting explains how to set a threshold that screens for risk without screening out a protected class.
Application Fees in Arkansas: No Cap
Arkansas sets no maximum on a tenant application or screening fee. The practical limits are reasonableness and consistency: tie the fee to the actual cost of the report and charge the same amount to every applicant.
Uneven fees, or fees collected without genuine screening, draw fair housing scrutiny even in a state that regulates this little. Treat the fee as part of a documented, even-handed process.
Least regulated is not unregulated
Arkansas leaves most of the landlord-tenant relationship to the lease, but the Fair Credit Reporting Act still governs the report you buy and federal fair housing law still governs who you approve.
Security Deposits Under Section 18-16-304
Arkansas caps the security deposit at two months’ rent, but only for certain landlords: the cap applies to a landlord who owns more than five rental units, or to any landlord, regardless of size, who hires a third party to manage the property. A small landlord who owns five or fewer units and manages them personally is exempt from the cap and from much of the deposit act.
For covered landlords, the deposit must be itemized and the balance returned within sixty days after the tenancy ends and the tenant delivers possession. Our deeper look at Arkansas security deposit laws covers who is covered and what deductions are allowed.
Arkansas Fair Housing and Protected Classes
Arkansas follows the federal Fair Housing Act, prohibiting discrimination on the basis of race, color, religion, sex, national origin, familial status, and disability, with HUD interpreting sex to include sexual orientation and gender identity in housing. Arkansas does not add source of income as a statewide protected class.
That means a landlord is not required by state law to accept a housing voucher, though uniform treatment of every applicant remains the rule. For the federal baseline, see our Fair Housing Act guide for landlords.
Criminal History, Credit, and Eviction Records
A criminal record can be a lawful basis to decline in Arkansas, but a blanket no-record policy is the most common fair housing trap. HUD’s 2016 guidance treats criminal-records screening under a disparate-impact lens, so a flat ban can violate the federal Fair Housing Act even without intent. Use an individualized assessment tied to the offense, how recent it is, and safety.
Credit history and prior evictions are cleaner when your standard is objective and consistently applied. You can read how eviction filings arise on our Arkansas eviction notice laws page. Decide your criteria in advance and apply them the same way every time.
The FCRA: Consent and Adverse Action
When you pull a screening report through a consumer reporting agency, the federal Fair Credit Reporting Act governs the transaction – and in Arkansas, where state law is nearly silent on screening, this is the rule that matters most. You need a permissible purpose and written authorization before ordering the report, and you must send an adverse action notice if the report drives a denial, a higher deposit, or a co-signer demand.
The notice must name the reporting agency, state that it did not make the decision, and explain the applicant’s right to a free copy and to dispute it. Our FCRA compliance guide and the companion walkthrough of the adverse action notice spell out the requirements.
Fair Housing Compliance for Arkansas Landlords
The federal Fair Housing Act demands uniform criteria, uniform application, and documentation showing you treated every applicant by the same yardstick. In the least-regulated rental state, the federal rules and your own paper trail are essentially all that govern the process.
Publish your criteria before you advertise, screen every applicant against the identical standard, and keep the file. Consistency is far more persuasive than an after-the-fact explanation.
A Compliant Arkansas Screening Process
Turn the rules into one repeatable sequence. First, publish objective criteria. Second, collect a reasonable, uniform screening fee. Third, get written consent and order the report. Fourth, evaluate every applicant against the identical standard. Fifth, if you decline based on a report, send the adverse action notice promptly – and if you are a covered landlord, keep the deposit within the two-month cap and itemize the return.
Income verification is the step landlords most often shortcut; our guide to verifying tenant income shows how to confirm ability to pay without singling anyone out. Run the same steps for every applicant and your file will tell a clean, consistent story.
Common Mistakes That Create Liability
Because Arkansas regulates so little, the recurring errors are almost entirely federal: charging uneven application fees, applying a blanket criminal ban, and denying an applicant on a report without sending the FCRA adverse action notice. Covered landlords add deposit errors – exceeding two months or missing the sixty-day itemized return – to that list.
One standard, every applicant. In the least-regulated state, your own written process is nearly the only thing standing between you and a federal claim. A single written rubric, used the same way each time, is your strongest defense.
Documentation and Recordkeeping in Arkansas
Because Arkansas regulates the process so little, your records are nearly the entire story if a decision is questioned. Keep the signed authorization for each consumer report, a dated copy of the written criteria you applied, the screening results, and every adverse action notice. A complete file showing identical treatment across applicants is the strongest answer to a federal fair housing complaint.
If you are a covered landlord, document the deposit against the two-month cap, the itemized accounting delivered within sixty days, dated move-in and move-out records, and repair invoices. Small self-managed landlords who are exempt still benefit from the same records in any deposit dispute.
Set one retention policy and apply it to every file, approved or denied. A consistent multi-year record of authorizations, criteria, screening results, adverse action notices, and deposit accountings gives you the evidence to answer a discrimination inquiry or a deposit dispute. In a state with so few rules, the record of identical treatment is your defense.
Do
- ✓Publish your written screening criteria before you advertise, and apply them to every applicant.
- ✓Get written authorization before pulling any report, and keep the signed consent on file.
- ✓Send an FCRA adverse action notice on every denial that rests on a consumer report.
- ✓Assess any criminal record case by case, weighing the offense, how recent it is, and safety.
- ✓Handle the security deposit and its return exactly as the state statute requires, and document it.
Avoid
- ✕Charge uneven application fees, or collect a fee with no genuine screening behind it.
- ✕Treat a permissive state as a lawless one – the FCRA and federal fair housing law always apply.
- ✕Apply a blanket ban on any criminal record, which risks a disparate-impact violation.
- ✕Improvise your standards applicant by applicant instead of following one written rubric.
- ✕Skip the deposit paperwork the statute requires, from itemization to any required notices.
Arkansas Tenant Screening Laws: FAQ
Can an Arkansas landlord run a background check on an applicant?
Yes. With written authorization you may obtain a consumer report covering credit, rental history, income, and criminal convictions. The federal Fair Credit Reporting Act requires a permissible purpose and consent before any screening report is pulled.
Is there a limit on application fees in Arkansas?
No. Arkansas does not cap tenant application or screening fees. Keep the fee reasonable, tie it to the actual cost of screening, and charge it consistently to every applicant.
What is the maximum security deposit in Arkansas?
Two months’ rent under section 18-16-304, but the cap applies only to landlords who own more than five units or who hire a manager. Small self-managed landlords with five or fewer units are exempt.
When must an Arkansas landlord return the deposit?
For covered landlords, within sixty days after the tenancy ends and the tenant delivers possession, with an itemized accounting of any deductions.
Is source of income a protected class in Arkansas?
No. Arkansas follows the federal protected classes and does not list source of income, so state law does not require a landlord to accept a housing voucher. Treat every applicant by the same standard regardless.
Can an Arkansas landlord deny an applicant for a criminal record?
A conviction can be a lawful reason to decline, but blanket bans are risky. HUD’s 2016 guidance warns that a flat no-record policy can create a disparate-impact violation, so use an individualized assessment tied to the offense, how recent it is, and safety.
Does an Arkansas landlord have to send an adverse action notice?
Yes. If a denial, a higher deposit, or a co-signer requirement rests in any part on a consumer report, the FCRA requires an adverse action notice naming the reporting agency and explaining the right to a free report and to dispute it.
Does the Arkansas deposit cap apply to every landlord?
No. The two-month cap and the deposit act apply to landlords who own more than five units or who hire a manager. A small landlord who owns five or fewer units and self-manages is exempt.
How long should a Arkansas landlord keep tenant screening records?
Keep applications, signed authorizations, screening results, adverse action notices, and deposit accountings for every applicant – approved or denied – for several years. In Arkansas, a consistent retention policy is the evidence that you treated every applicant by the same standard if a fair housing or deposit dispute later arises.
When must a Arkansas landlord send the adverse action notice?
Send it promptly whenever a consumer report contributes to an adverse decision – a denial, a higher deposit, or a co-signer requirement. The FCRA notice must name the reporting agency, state that it did not make the decision, and tell the Arkansas applicant how to get a free copy of the report and dispute any error.
Related Arkansas and Screening Guides
- Tenant screening laws by state – compare Arkansas to the rest of the country.
- Arkansas security deposit laws – deductions, itemization, and the return deadline.
- Arkansas eviction notice laws – notice periods and the eviction timeline.
- Arkansas rent increase laws – notice rules for raising the rent.
- Arkansas late fee laws – what you can charge for late rent.
- How a tenant background check works – what a report includes.
- Arkansas habitability laws – your maintenance obligations as a landlord.
Screen Arkansas Applicants the Compliant Way
Order FCRA-ready credit, criminal, and eviction reports and keep your Arkansas process consistent from application to decision.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.
Legal Disclaimer
This article is for general informational purposes only and is not legal advice. Arkansas and federal laws change, and how they apply depends on your specific facts. Before acting on any screening, fee, deposit, or fair housing question, consult a licensed attorney in Arkansas. Reading this page does not create an attorney-client relationship.
