Security deposit interest in Arkansas
No — Arkansas does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Arkansas sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
60 days.
Within 60 days of termination the landlord must return the deposit, or provide a written itemised statement of any deductions together with the balance, delivered to the tenant's last known address. If the tenant does not make a written request for the deposit within 180 days of termination, the deposit and any accrued interest become the landlord's property.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Arkansas's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Ark. Code Sec. 18-16-301 to 18-16-306. Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Arkansas law actually say?
Arkansas does not require landlords to pay interest on residential security deposits. The statute contains no interest provision and imposes no escrow or separate account requirement. Deposits are capped at two months' rent.
Importantly, the entire subchapter does not apply to landlords who own five or fewer dwelling units, unless a third party manages those units for a fee, so most small Arkansas landlords are exempt from these rules altogether. Within 60 days of termination the landlord must return the deposit, or provide a written itemised statement of any deductions together with the balance, delivered to the tenant's last known address. If the tenant does not make a written request for the deposit within 180 days of termination, the deposit and any accrued interest become the landlord's property.
The transferee or assignee of the landlord's interest at the time of termination is bound by the subchapter.
What if your landlord does not comply?
No interest obligation, so no interest penalty. A landlord who wrongfully fails to return the deposit within 60 days is liable to the tenant for double the amount wrongfully withheld, plus reasonable attorney fees and court costs.