What is the security deposit limit in Arkansas?
Arkansas limits security deposits to no more than two months rent (Ark. Code Ann. § 18-16-304), but the cap applies only to landlords who own six or more dwelling units, or to any landlord who employs a third party to manage the property for a fee regardless of unit count (§ 18-16-303). Landlords owning five or fewer units who self-manage are exempt and may collect any amount agreed in the lease. Covered landlords must return the deposit, with an itemized written statement of any deductions, within 60 days after termination of the tenancy and delivery of possession (§ 18-16-305). If the landlord fails to comply, § 18-16-306 entitles the tenant to recover the money due, damages equal to two times the amount wrongfully withheld, costs, and reasonable attorney fees — unless the landlord proves the noncompliance was an error made despite reasonable safeguards, or a good-faith dispute over the amount, in which case liability is limited to the sum withheld plus costs.