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Free Arkansas Security Deposit Return Letter

Generate a compliant Arkansas return letter under Arkansas Code Section 18-16-305. A covered landlord must return the deposit and deliver an itemized written notice within 60 days of the tenancy ending, or risk damages of two times the amount wrongfully withheld under section 18-16-306.

Ark. Code 18-16-305 60-day return Auto-calc refund Free PDF

An Arkansas security deposit return letter is the written accounting a landlord delivers with the deposit refund, or with the explanation of what was withheld, at the end of a tenancy. Under Arkansas Code Section 18-16-305, a covered landlord must furnish an itemized written notice of every deduction and return any remaining balance no later than 60 days after the tenancy terminates. Our Arkansas security deposit laws guide covers the wider framework, and the tenant screening laws by state hub helps you place tenants who leave the unit clean in the first place.

Arkansas deposit forms: Return Letter Itemization Form Move-In / Move-Out Checklist Deposit Laws

Video: a plain-language walkthrough of the Arkansas deposit return letter – the 60-day deadline, the six-or-more-units rule, permissible deductions, and the double-damages penalty.

Key Takeaways: Arkansas Deposit Return

  • Sixty days to return and itemize. Arkansas Code Section 18-16-305 requires a covered landlord to deliver the itemized written notice and return any remaining deposit within 60 days of the tenancy terminating.
  • Applies only to six-or-more-unit landlords. Under section 18-16-303, a landlord who owns five or fewer dwelling units is exempt, unless a third party manages the property for a fee.
  • No charging for wear and tear. Only accrued unpaid rent and damage from the tenant’s noncompliance with the lease are deductible; ordinary wear and tear is not.
  • Double-damages penalty. Wrongful withholding exposes the landlord to two times the amount wrongfully withheld, plus costs and attorney’s fees, under section 18-16-306.
  • Two-months-rent deposit cap. Section 18-16-304 bars a covered landlord from taking a deposit greater than two months’ periodic rent.
60 daysReturn + itemized notice
6+ unitsStatute applies (18-16-303)
2 monthsDeposit cap (18-16-304)
2x withheldBad-faith penalty (18-16-306)

Generate Your Arkansas Return Letter

Complete the form below to build a return letter ready to print, sign, and send by certified mail. Fill in the deposit math, itemize each deduction with a specific description, and the generator adds the original deposit to any interest, subtracts the itemized deductions, and calculates the refund balance owed to the tenant automatically. If deductions exceed the deposit, it flips to show the additional balance the tenant owes. Every figure you enter flows straight into the PDF letter, and you can review the running total on screen before you generate.

Itemization must be specific

A single vague line such as “cleaning” or “repairs” with no description weakens a landlord’s position. Arkansas Code Section 18-16-305 keys the deductions to accrued unpaid rent and lease-noncompliance damages that are itemized in a written notice to the tenant, so each deduction must say what was unpaid or damaged and why the charge was necessary. Under the statute, wrongful withholding can draw double damages, and generic categories without documentation invite exactly that dispute.

Arkansas Security Deposit Return Letter Builder

1. Parties

2. Tenancy

3. Original Deposit

4. Itemized Deductions

List each deduction with a specific description and a dollar amount for accrued unpaid rent or lease-noncompliance damage. Leave blank rows empty if not needed.

Original Deposit + Interest:
Total Deductions:
Refund Balance:

5. Refund Decision

6. Letter Details

PDF downloaded. Sign and send by certified mail with the refund check enclosed.

How Arkansas’s 60-Day Deposit Rule Works

Arkansas runs its security deposit return on a single statutory clock that is longer than most states allow. Under Arkansas Code Section 18-16-305, a covered landlord has no more than 60 days after the termination of the tenancy to do two things: return any remaining portion of the deposit and deliver a written notice that itemizes each deduction and its dollar amount. The 60-day window is not a target to aim for; it is the outer limit, and blowing past it is the single most common way an Arkansas landlord who is covered by the statute loses the right to keep deductions that could otherwise have been justified.

The clock starts when the tenancy terminates, meaning when the lease ends and the tenant surrenders possession of the unit, not when the tenant later mails a forwarding address. This ordering trips up landlords who wait for an address before beginning the accounting. The defensible practice is to capture the forwarding address at move-out, ideally during a walk-through inspection, and to begin the deduction accounting immediately so that the itemized notice is finished, printed, and in the mail well before day 60. If the tenant never provides a forwarding address, section 18-16-305 permits the landlord to mail the statement and any refund by first-class mail to the tenant’s last known address, which is often the rental unit itself.

Start the accounting at termination, not at forwarding. The 60-day clock in Arkansas Code Section 18-16-305 runs from the day the tenancy ends and possession is surrendered. Gather the forwarding address at the walk-through, begin itemizing the same week, and treat day 60 as a hard mailing deadline rather than a soft goal, because a late statement undercuts every deduction and exposes the full deposit to a double-damages claim.

The Six-or-More-Units Rule: Who the Statute Covers

Arkansas is unusual, and this is the single most important thing to get right before relying on the statute. The security deposit subchapter does not apply to every landlord. Under Arkansas Code Section 18-16-303, the subchapter does not apply to dwelling units owned by an individual if that individual, together with a spouse and minor children and any partnerships, corporations, or other legal entities formed to rent units and controlled by them, owns or collectively owns five or fewer dwelling units. Put plainly, a small landlord with five or fewer units is exempt from the 60-day deadline, the itemization duty, and the two-month deposit cap.

The exemption has an important limit. It does not apply when management, including rent collection, is performed by a third person for a fee. So an owner who holds only a handful of units but hires a professional management company to collect the rent is pulled back under the statute, and the 60-day duties and the double-damages penalty apply just as they would to a large owner. The practical takeaway is to count units carefully and to ask whether a management company is in the picture before deciding which set of rules governs.

Count units and check for a manager first. Section 18-16-303 exempts owners of five or fewer units, but that exemption evaporates if a third party manages the property for a fee. A landlord who is exempt is not bound by the 60-day statutory deadline; even so, returning the deposit promptly with a clear written accounting is the right practice and reduces small-claims exposure regardless of coverage. When in doubt about coverage, follow the statute.

What the Arkansas Return Letter Does

The return letter is the document that proves a covered landlord did the accounting the statute requires. Under Arkansas Code Section 18-16-305, when a landlord withholds any part of the deposit, the withheld money may be applied to accrued unpaid rent and to any damages the landlord suffered because of the tenant’s noncompliance with the rental agreement, all as itemized in a written notice delivered to the tenant. The letter ties the deposit decision to a written record the landlord can later produce in district or small-claims court if the tenant disputes the withholdings.

The document does three things at once. It satisfies the statutory duty to communicate the deposit decision in writing within the deadline. It gives the tenant a concrete accounting to review and, if warranted, to dispute line by line. And it creates a contemporaneous record that answers a later challenge to the deductions. Without a properly delivered written notice, even legitimate deductions are exposed, because a landlord who cannot show a timely, itemized statement has a weak position when the tenant claims the full deposit back and asks the court for double damages on top under section 18-16-306.

Permissible Deductions Under Section 18-16-305

Arkansas ties the deductions to two categories, and no more. Under Arkansas Code Section 18-16-305, the deposit money may be applied to the payment of accrued unpaid rent and to any damages the landlord suffered by reason of the tenant’s noncompliance with the rental agreement, all itemized in the written notice. In practice that means unpaid rent, any unpaid fees the lease actually authorizes, and the reasonable cost of repairing damage the tenant or the tenant’s guests caused beyond ordinary wear and tear. Because the statute frames the second category as lease noncompliance, a deduction stands or falls on whether the lease and the tenant’s conduct actually created a compensable loss.

Keep the receipts and invoices that back each figure even though the Arkansas statute does not spell out a receipt-attachment threshold the way some states do. The itemized written notice is the statutory requirement; the receipts are the evidence that makes each itemized amount defensible if the tenant challenges it and the dispute reaches a court weighing the double-damages penalty. Attaching the documentation costs nothing extra and closes off the argument that a charge was invented or padded.

The Two-Month Deposit Cap Under Section 18-16-304

The amount a covered Arkansas landlord may hold is capped by statute. Under Arkansas Code Section 18-16-304, a landlord may not demand or receive a security deposit, however denominated, in an amount or value greater than two months’ periodic rent. The cap governs how much can be collected up front; the return letter governs how the deposit is accounted for at the end. As with the return deadline, the cap binds only landlords who are covered by section 18-16-303, meaning owners of six or more units or owners who use third-party management for a fee. Our Arkansas security deposit laws guide walks through the collection-side rules that set the deposit figure this letter later refunds.

The Double-Damages Penalty Under Section 18-16-306

The penalty is what gives the 60-day clock its teeth. Under Arkansas Code Section 18-16-306, if a covered landlord fails to comply with the subchapter, the tenant may recover the property and money due, damages in an amount equal to two times the amount wrongfully withheld, court costs, and reasonable attorney’s fees. Missing the 60-day deadline entirely, charging obvious wear and tear, inventing or padding deductions, and refusing to return an undisputed balance are the common triggers that expose a landlord to that double-damages award.

There is a good-faith safety valve. The statute lets a landlord limit liability to the actual amount withheld plus costs, avoiding the double-damages multiplier, if the landlord shows by a preponderance of the evidence that the noncompliance resulted from a procedural error or from a good-faith disagreement about the amount owed. That defense is fact-specific and never guaranteed, so the reliable protection is a precise, timely, well-documented itemized notice rather than a hoped-for excuse after the fact.

Mailing, the Last Known Address, and Unclaimed Deposits

Arkansas addresses the common problem of a tenant who moves and leaves no forwarding address. Under Arkansas Code Section 18-16-305, when the tenant has left the premises and no forwarding address is available, the landlord may mail the refund by first-class mail to the tenant’s last known address. If that letter, containing the payment, is returned to the landlord and the landlord is unable to locate the tenant after a reasonable effort, the payment becomes the property of the landlord 180 days from the date the payment was mailed. The safe practice is to mail well within the 60-day window, keep the returned envelope unopened as proof of the attempt, and document the search for the tenant so the 180-day rule applies cleanly.

Wear and Tear Versus Damage

Arkansas treats normal wear and tear as the gradual deterioration of the unit from ordinary use over time, and it is never a lease violation, so it is never deductible. Faded paint, minor carpet wear in walking paths, small scuff marks near door handles, loose grout, and minor nail holes from hanging pictures all fall on the wear-and-tear side. Damage is harm beyond ordinary use: large holes in walls, carpet stains or burns, broken fixtures, pet urine saturation, smoke damage, missing appliances, or deliberate alterations. Only accrued unpaid rent and damage from the tenant’s noncompliance with the lease are deductible under section 18-16-305. The move-in and move-out condition records and dated photographs are the evidence that separates one from the other, which is why a thorough Arkansas move-in and move-out checklist is the upstream document that makes a defensible deduction possible.

Statute Reference Table

The provisions an Arkansas return letter relies on live across a short run of the security deposit subchapter:

  • Arkansas Code Section 18-16-303 – the applicability rule; the subchapter does not apply to owners of five or fewer dwelling units, unless a third party manages the property for a fee.
  • Arkansas Code Section 18-16-304 – the deposit cap; no more than two months’ periodic rent may be demanded or received.
  • Arkansas Code Section 18-16-305 – the 60-day deadline to return the deposit with an itemized written notice, the permissible deductions (accrued unpaid rent and lease-noncompliance damages), and the mail-to-last-known-address and 180-day unclaimed-deposit rules.
  • Arkansas Code Section 18-16-306 – the penalty; the property and money due, two times the amount wrongfully withheld, costs, and attorney’s fees, subject to a good-faith or procedural-error defense.

Statutory numbering and text are occasionally amended, so treat the citations above as a guide and confirm the current text of the Arkansas Code before you rely on a specific provision in a filing.

What the Arkansas Return Letter Must Contain

Arkansas Code Section 18-16-305 frames the core duty as delivering an itemized written notice of deductions along with the balance of the deposit, so the return letter is built around that notice. A complete letter pulls together the identifying facts, the deposit accounting, and the itemized deductions into a single document the landlord can sign, date, and mail. Each element below appears in the generator above, and each one earns its place because a missing piece is exactly what a tenant points to when contesting the withholding.

  • The date of the letter. It fixes the day the notice was prepared and, with the mailing receipt, shows the accounting landed inside the 60-day window.
  • The parties. The landlord or property manager and every tenant named on the lease, so the notice reaches the people entitled to the accounting.
  • The forwarding or last known address. Where the letter and any refund are being sent, whether the forwarding address the tenant provided or the last known address section 18-16-305 permits when none was given.
  • The property and tenancy dates. The full rental address and the start and end dates of the tenancy, tying the accounting to a specific lease.
  • The original deposit amount. The figure the whole accounting starts from, which section 18-16-304 caps at two months’ periodic rent for a covered landlord.
  • The itemized deductions. Each charge for accrued unpaid rent or lease-noncompliance damage, described specifically with its dollar amount, is the heart of the statutory written notice.
  • The refund balance. The deposit and any interest, less the itemized deductions, stated as the amount owed to the tenant or, where deductions exceed the deposit, the additional balance owed by the tenant.
  • The delivery method and the signature. A statement of how the letter is being sent, followed by the landlord’s signature and title, closing the accounting the statute requires.

Vague entries are the weak point. A line that reads only cleaning or repairs, with no description and no supporting receipt, is the kind of unsupported charge that unravels in a section 18-16-306 dispute. Each deduction should read like a short sentence a stranger could evaluate: what was unpaid or damaged, why it was the tenant’s responsibility, and what it cost.

Arkansas in Context: A Long Clock, a Narrow Statute

Arkansas sits at an unusual spot among the states on security deposits, and understanding that context helps a landlord apply the rules correctly. The 60-day return window is one of the more generous in the country; many states demand the accounting within 14, 21, or 30 days, so an Arkansas landlord has more breathing room than most. That extra time is not a reason to delay, though, because the penalty for missing the deadline is the same double-damages exposure other states impose, and a longer clock simply means less excuse for a late notice.

The feature that truly sets Arkansas apart is the six-or-more-units applicability rule in section 18-16-303. Most states apply their deposit statute to every residential landlord; Arkansas exempts the small owner of five or fewer units unless a paid manager is involved. A landlord who assumes the statute governs when it does not, or assumes it does not when a management company has pulled the property back under it, can misjudge the whole obligation. This is why coverage is the first thing to confirm and the last thing to assume. When there is any doubt, the conservative course is to follow the statute in full: return promptly, itemize precisely, document thoroughly, and mail with proof, because doing so protects the landlord regardless of which side of the coverage line the property falls on.

How to Complete the Arkansas Return Letter Step by Step

The builder above turns the statutory requirements into a fill-in-the-blank sequence, but it helps to understand what each step is doing and why it matters if the deposit is later contested. Work through the fields in order and the finished letter will carry every element Arkansas Code Section 18-16-305 expects an itemized written notice to contain.

  1. Confirm coverage before you start. Count the dwelling units you own, including those held through any entity you control, and note whether a third party manages the property for a fee. If you own six or more units, or you use paid management, section 18-16-303 makes the 60-day rule mandatory. If you are exempt, complete the letter anyway as good practice, but understand the statutory deadline and penalty do not bind you.
  2. Fix the termination date and the 60-day mailing deadline. Write down the date the tenancy ended and possession was surrendered, then count 60 calendar days forward. That later date is your hard mailing deadline for both the refund and the itemized notice. Calendar it the day the tenant hands back the keys.
  3. Enter the parties and the property. The landlord name and mailing address, the tenant names exactly as they appear on the lease, the tenant’s forwarding address, and the full rental property address all go in the first two sections. If the tenant gave no forwarding address, plan to mail to the last known address by first-class mail, which section 18-16-305 expressly allows.
  4. Record the original deposit. Enter the exact amount the tenant paid at move-in. Confirm it did not exceed two months’ periodic rent, the ceiling section 18-16-304 sets for a covered landlord, because an over-cap deposit is itself a compliance problem that can color the whole accounting.
  5. Itemize each deduction with a specific description. For every charge, write what it is and why it is a lawful deduction: accrued unpaid rent for a named month, or a specific repair for damage beyond ordinary wear and tear that breached the lease. Attach the receipt or invoice behind each figure even though Arkansas does not set a dollar threshold for attachments, because the itemized notice is only as strong as the evidence behind each line.
  6. Let the generator calculate the balance. The builder adds the deposit and any interest, subtracts the itemized deductions, and shows the refund owed to the tenant, or, when deductions exceed the deposit, the additional balance the tenant owes. Review the on-screen math before you generate the PDF.
  7. Choose the refund category, the payment method, and the delivery method. Match the refund category to the math, note the check number if you enclose a check, and select certified mail with return receipt so you can prove the mailing date if the timing is ever questioned in a section 18-16-306 claim.
  8. Sign, date, mail, and keep copies. Sign the letter, date it within the 60-day window, mail the package, and retain a signed copy, the itemized notice, the receipts, the condition records, and the mailing receipt.

How to Calculate the Arkansas Return

The arithmetic behind the letter is simple, but doing it in the right order keeps a covered landlord on the correct side of the double-damages penalty. Start with the full amount the tenant paid as a deposit, which under section 18-16-304 cannot exceed two months’ periodic rent. If any local ordinance or the lease required interest, add it, though Arkansas does not impose a statewide interest requirement on residential deposits. That sum is the total the landlord is accountable for.

From that total, subtract only the deductions section 18-16-305 permits: accrued unpaid rent and the itemized damages the landlord suffered because the tenant did not comply with the rental agreement. Add the deductions together, subtract them from the deposit-plus-interest total, and the result is the refund balance owed to the tenant. When the lawful deductions equal or exceed the deposit, the refund is zero, and when they exceed it, the tenant may owe an additional balance the landlord can pursue separately. The generator performs exactly this sequence, and the on-screen total lets a landlord sanity-check each figure before committing it to the PDF.

Two calculation errors recur in Arkansas disputes. The first is folding a wear-and-tear item into a repair line, which inflates the deductions and invites a challenge to the entire accounting. The second is charging a full-replacement cost for an item that was already partway through its useful life, rather than the depreciated cost of the damage actually done. Both errors are the kind of overreach that turns a defensible deduction into a wrongful withholding, and section 18-16-306 measures the penalty against the amount wrongfully withheld.

Deduct in the right order and document each line. Deposit plus any interest, minus accrued unpaid rent, minus itemized lease-noncompliance damage, equals the refund. Every subtraction must trace to a specific, documented line in the written notice, because under section 18-16-306 the double-damages award is measured against whatever the court finds was wrongfully withheld.

Best Practices for Arkansas Landlords

The landlords who never see a deposit dispute tend to share the same habits, and each one strengthens the position the return letter documents. None of these is difficult; together they turn the 60-day accounting from a scramble into a routine.

  • Document condition at both ends of the tenancy. A dated, tenant-signed move-in checklist paired with a matching move-out record is the single most persuasive evidence that a charge reflects damage rather than wear and tear. Photographs keyed to the checklist rooms make each deduction concrete.
  • Capture the forwarding address at move-out. Ask for it during the walk-through and note the date. If none is provided, section 18-16-305 lets you mail to the last known address, so keep that on file as well.
  • Start the accounting immediately. Begin itemizing the week the tenant leaves rather than waiting, so the notice is finished and mailed well inside the 60-day window with room to spare.
  • Keep every receipt. Even though Arkansas sets no attachment threshold, the receipts and invoices are the proof that turns an itemized line into a defensible deduction if the tenant contests it.
  • Mail with proof of delivery. Certified mail with return receipt fixes a provable delivery date, which matters if the tenant later argues the notice was late or never arrived.
  • Return undisputed amounts promptly. If part of the deposit is plainly owed back, send it without waiting to resolve a disputed line, because retaining an undisputed balance is a classic trigger for the double-damages penalty.
  • Re-confirm coverage each year. Buying or selling units, or bringing in a paid manager, can move a landlord across the six-or-more-units line in section 18-16-303, so revisit the question as the portfolio changes.

If the Tenant Disputes the Arkansas Accounting

A tenant who believes the withholding was improper can bring a claim in an Arkansas district or small-claims court seeking the property and money due, two times the amount wrongfully withheld, court costs, and reasonable attorney’s fees under section 18-16-306. The landlord’s defense is the paper trail: a timely, itemized written notice; receipts and invoices behind each line; and move-in and move-out condition records that show the damage was real and beyond ordinary wear and tear. Where the landlord can show by a preponderance of the evidence that any noncompliance was a procedural error or flowed from a good-faith disagreement about the amount owed, the statute limits the exposure to the actual amount withheld plus costs, sparing the double-damages multiplier.

That good-faith safety valve is real but narrow, and it is never a substitute for doing the accounting correctly the first time. The reliable protection is a precise itemized notice mailed inside the 60-day window with the documentation attached, because a landlord who can produce that record rarely needs to argue about good faith at all. Screening the tenant well at the front end, keeping condition records throughout, and following the step-by-step accounting above are what keep the deposit dispute out of court entirely.

What to Send With the Arkansas Return Letter

A complete deposit-return package usually includes:

  • The return letter itself – generated above, signed and dated within 60 days of the tenancy terminating.
  • The refund check – for the calculated balance, if any.
  • Copies of receipts and invoices for each deduction – the evidence behind each itemized amount if the deduction is later challenged.
  • The move-in and move-out condition records – they establish baseline condition against end-of-tenancy condition.
  • Dated move-out photographs – paired with the condition record to prove damage rather than wear and tear.
  • A copy of the lease – for the deposit, fee, and noncompliance provisions it contains.

Send the package by certified mail with return receipt to the forwarding address, or by first-class mail to the last known address if none was given, retain the mailing receipt, and keep copies of everything for at least five years.

Common Arkansas Landlord Mistakes

The most-litigated Arkansas deposit disputes share a short list of errors:

  • Missing the 60-day deadline because the accounting did not start until a forwarding address arrived.
  • Assuming the statute does not apply without actually counting units or checking whether a third party manages the property for a fee under section 18-16-303.
  • Charging for ordinary wear and tear such as faded paint or minor carpet wear from foot traffic, which is not lease noncompliance.
  • Listing a single vague “cleaning” or “repairs” line with no description, undercutting the itemized-notice requirement.
  • Collecting more than two months’ periodic rent as a deposit in violation of section 18-16-304.
  • Refusing to return an undisputed balance and risking the double-damages award, costs, and attorney’s fees under section 18-16-306.

Do

  • Return the deposit and itemized written notice within 60 days of the tenancy terminating.
  • Confirm coverage under section 18-16-303 by counting units and checking for a paid manager.
  • Describe each deduction specifically and tie it to a dated photograph and a receipt.
  • Mail to the forwarding address, or to the last known address by first-class mail if none was given.
  • Send by certified mail with return receipt and keep the proof for five years.

Avoid

  • Waiting for a forwarding address before starting the 60-day accounting.
  • Assuming the statute does not apply without counting units and checking for a paid manager.
  • Charging normal wear and tear against the deposit.
  • Listing a vague “cleaning” or “repairs” line with no description.
  • Retaining an undisputed balance and risking the double-damages penalty plus fees.

Tenant Screening as Prevention

The cleanest move-outs come from tenants who were screened thoroughly at the application stage. A verifiable income, a steady payment history, and a clean eviction record are the strongest predictors of a unit returned in good condition, which means a short return letter, a full refund, and no double-damages exposure. Screening is the upstream control that keeps the deposit accounting simple. Our overview of how to screen tenants step by step walks through the process, and the broader tenant screening laws by state guide covers the rules that apply when you pull a report.

Arkansas Security Deposit Return Letter: FAQ

What is an Arkansas security deposit return letter?

It is the written accounting an Arkansas landlord sends to a departing tenant with the deposit refund or the explanation of what was withheld. Under Arkansas Code Section 18-16-305, a covered landlord must return the deposit, less any lawful deductions, together with an itemized written notice of every deduction, no later than 60 days after the tenancy terminates. The deductions are limited to accrued unpaid rent and the damages the landlord suffered from the tenant’s noncompliance with the rental agreement, each itemized in the written notice delivered to the tenant.

How many days does an Arkansas landlord have to return the security deposit?

Sixty days. Arkansas Code Section 18-16-305 requires a covered landlord to return the balance of the deposit and deliver the itemized written notice of deductions no later than 60 days after the termination of the tenancy. Arkansas allows a longer window than most states, but the 60-day period is the outer limit, and missing it exposes the landlord to the statutory penalty under section 18-16-306.

Does Arkansas’s security deposit law apply to every landlord?

No. Arkansas Code Section 18-16-303 exempts a landlord who, together with a spouse and minor children and any entities they control, owns five or fewer dwelling units. Only a landlord who owns six or more units is bound by the 60-day deadline, the itemization duty, and the deposit cap. The exemption is lost if rent collection or other management is performed by a third party for a fee, in which case the statute applies regardless of unit count. This six-or-more-units rule is the single most important thing to confirm before relying on the Arkansas statute.

What happens if an Arkansas landlord wrongfully withholds the deposit?

Under Arkansas Code Section 18-16-306, a tenant whose covered landlord fails to comply may recover the property and money due, damages equal to two times the amount wrongfully withheld, court costs, and reasonable attorney’s fees. A landlord who shows by a preponderance of the evidence that the noncompliance resulted from a procedural error or a good-faith disagreement about the amount owed can limit liability to the actual amount withheld plus costs, avoiding the double-damages penalty.

What can an Arkansas landlord deduct from the security deposit?

Arkansas Code Section 18-16-305 limits deductions to accrued unpaid rent and the damages the landlord suffered because the tenant did not comply with the rental agreement, itemized in the written notice. In practice that means unpaid rent, unpaid fees the lease authorizes, and the reasonable cost of repairing damage the tenant or the tenant’s guests caused beyond ordinary wear and tear. Ordinary wear and tear, the natural deterioration of the unit from normal use, is not a lease violation and is not deductible.

How much security deposit can an Arkansas landlord collect?

Arkansas Code Section 18-16-304 provides that a covered landlord may not demand or receive a security deposit in an amount or value greater than two months’ periodic rent. The cap governs collection at lease signing; the return letter governs how that deposit is accounted for at the end of the tenancy. As with the other duties, the cap binds only landlords who own six or more units under section 18-16-303.

What happens to an unclaimed deposit in Arkansas?

Arkansas Code Section 18-16-305 lets the landlord mail the refund by first-class mail to the tenant’s last known address when the tenant has moved and left no forwarding address. If that letter is returned and the landlord cannot locate the tenant after a reasonable effort, the payment becomes the property of the landlord 180 days after it was mailed. The safe practice is to mail well within the 60-day window, keep the returned envelope unopened as proof, and document the search for the tenant.

How should an Arkansas landlord deliver the return letter?

Deliver the itemized notice and any refund to the forwarding address the tenant provided, or, if none was given, mail it by first-class mail to the tenant’s last known address as Arkansas Code Section 18-16-305 permits. The defensible practice is certified mail with return receipt, which fixes a provable delivery date if the timing is later disputed in a section 18-16-306 action. Keep a signed copy of the letter, the itemized notice, and the mailing receipt.

What must an Arkansas deposit return letter include?

At a minimum: the date, the tenant’s name and forwarding address, the property address and tenancy dates, the original deposit amount, an itemized written notice of each deduction with a specific description and dollar amount for accrued unpaid rent and lease-noncompliance damages, the refund balance, and the landlord’s signature. Arkansas Code Section 18-16-305 keys the deductions to itemized amounts, so vague single-line entries such as cleaning or repairs, with no description, weaken the landlord’s position in a double-damages dispute.

How long should I keep the return letter and supporting documents?

Keep the signed return letter, the itemized notice, the receipts and invoices, the move-in and move-out condition records and photos, and the mailing receipt for at least five years from the end of the tenancy. Arkansas’s limitations period for a written-contract claim is five years, so a five-year retention window comfortably covers a deposit dispute that lands in small-claims or district court.

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About the Author

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.

Updated 2026

Legal Disclaimer

This form and guide are for general informational purposes only and are not legal advice. Arkansas security deposit law turns on the six-or-more-units applicability rule, and an incomplete itemized notice or a missed 60-day deadline can forfeit deductions and expose a covered landlord to damages of two times the amount wrongfully withheld plus costs and attorney’s fees. Review Arkansas Code Sections 18-16-303 through 18-16-306 and consult a licensed Arkansas landlord-tenant attorney before withholding any part of a deposit. Reading this page does not create an attorney-client relationship.