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What Is an Arkansas Residential Lease Agreement?

An Arkansas residential lease agreement is a contract between a landlord and tenant that sets the terms for renting a dwelling. Arkansas has historically been one of the most landlord-friendly states in the country, but a 2021 reform introduced limited implied habitability standards for the first time. Deposit rules apply primarily to landlords with six or more rental units, and the state preempts local rent control.

When to Use a Residential Lease in Arkansas

  • Renting a house, apartment, duplex, or manufactured home as a primary residence.
  • Establishing a fixed-term or month-to-month tenancy.
  • Documenting rent, deposit handling, and maintenance responsibilities.
  • Complying with Ark. Code §§ 18-16-301 to 18-16-306 (deposits) and §§ 18-17-501 to 18-17-506 (habitability).

Key Arkansas Residential Lease Provisions

  • Security Deposit Cap: For landlords covered by the deposit statute (generally those with six or more rental units), the maximum deposit is two months' rent. Ark. Code § 18-16-304.
  • Deposit Return: The landlord must return the deposit, less lawful deductions with an itemized statement, within 60 days after the lease ends and the tenant vacates. § 18-16-305.
  • Limited Habitability Standard (2021): For leases entered into or renewed after November 1, 2021, the premises must provide hot and cold running water, electricity, potable water, sanitary sewer and plumbing, a functioning roof and building envelope, and functioning heating and existing air-conditioning systems. Ark. Code § 18-17-502(a).
  • Habitability Remedy — Termination Only: If the landlord fails to cure a qualifying defect within 30 calendar days of written notice and the tenant is current on rent, the tenant's sole statutory remedy is termination without penalty and recovery of any refundable deposit. The tenant may not withhold or offset rent. § 18-17-502(d)(2)–(3).
  • Rent Control Preemption: Local governments may not control rent on private residential property. Ark. Code §§ 14-16-601(b), 14-54-1409(b).
  • No Statewide Late-Fee Cap: Arkansas does not impose a statutory cap on late fees for residential leases. Late-fee terms are governed by the lease agreement.
  • No Statewide Entry Notice: Arkansas does not have a general statewide statute requiring a specific notice period before landlord entry. Entry terms should be addressed in the lease.

Frequently Asked Questions

Is there a security deposit limit in Arkansas?

For covered landlords (generally those with six or more units), the maximum is two months' rent (Ark. Code § 18-16-304). Smaller landlords may not be subject to the cap.

How long does an Arkansas landlord have to return a security deposit?

Within 60 days after the lease ends and the tenant vacates, with an itemized statement of any deductions (§ 18-16-305).

Does Arkansas have a warranty of habitability?

Since November 2021, limited implied standards require functioning water, electricity, plumbing, roof, heating, and air conditioning for covered leases (Ark. Code § 18-17-502). However, the tenant's sole remedy is termination—not repair-and-deduct or rent withholding.

Can an Arkansas tenant withhold rent for repairs?

No. Even under the 2021 habitability standard, the statute expressly prohibits tenants from offsetting or withholding rent for alleged or actual violations. § 18-17-502(d)(3).

Does Arkansas allow local rent control?

No. State law preempts local governments from controlling rent on private residential property. Ark. Code §§ 14-16-601(b), 14-54-1409(b).