Arkansas security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
State law does not mandate a dedicated security deposit bank account in Arkansas. Landlords are not required to separate the tenant security deposit Arkansas residents' funds from their own funds, though doing so helps ensure the money is available within the 60-day return window.
{{ state }} security deposit
limits
The maximum security deposit Arkansas landlords can charge is two months' rent for those owning six or more units. But if you own five or fewer units and self-manage them, there is no limit. The average security deposit in Arkansas typically ranges from $950 to $1,900, aligning with the state's average monthly rent prices.
{{ state }} security deposit interest
The state mandates no security deposit interest rate. It means interest on security deposit Arkansas funds does not need to be paid or credited to the tenant, as outlined by state law security deposit regulations.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
2 month’s rent (>6 properties); no limit if you own <5 properties
No
No dedicated account required
Unpaid rent or other fees, repairs, lease violations, and cleaning costs
60 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Arkansas?
The Arkansas security deposit limit is two months' rent if you own six or more properties. This limit doesn’t cover the first and last month's rent.
Is interest required on tenant security deposits in Arkansas?
No, there is no requirement for interest on security deposit Arkansas payments. So, if you keep the funds in a dedicated landlord-tenant security deposit bank account in Arkansas.
How should I issue a security deposit receipt to tenants in Arkansas?
While you are not legally required to issue a security deposit receipt, doing so is highly recommended. Include the payment date, amount received, and the rental unit's address. Sharing this receipt as soon as you receive the deposit is helpful. It can also prevent future disputes and help you build a stronger relationship with your tenants.
How many days to return a security deposit in Arkansas?
You get a 60-day window after the tenant vacates to return the tenant security deposit Arkansas residents paid, minus any lawful deductions, along with an itemized list of all the deductions.
What can a landlord deduct from a security deposit Arkansas?
As per landlord rights security deposit regulations, you can deduct for unpaid rent, utility bills, and costs to repair damages to your property (house rental, apartment, condo) that exceed normal wear and tear. But, if you fail to return the deposit or provide an itemized list within 60 days, you may be liable for double damages.
Can a security deposit be used for unpaid rent in Arkansas?
Yes, as a landlord, you can use the deposit to cover any unpaid rent if the tenant moves out owing the amount. While Arkansas law is flexible and doesn't require you to open a security deposit escrow account, Arkansas banks offer, keeping these funds separate helps you clearly account for the deductions.
Can landlords keep a security deposit for breaking a lease in Arkansas?
Yes, if a tenant is breaking lease terms early, you can use the landlord security deposit Arkansas funds to cover your financial losses. As Arkansas law doesn’t require landlords to "mitigate damages" (meaning you aren't forced to find a replacement tenant immediately), you can use the deposit to cover the rent for the remaining months of the lease or any termination fees you included in the contract.
