What is the maximum security deposit in Arkansas?

Question

Accepted Answer

Under Ark. Code Ann. § 18-16-304 (cap); § 18-16-303 (small-landlord exemption), Arkansas's security deposit limit is tiered: 2 months' rent; landlords with 5 or fewer self-managed units are exempt from the cap entirely. 2 months' rent for Standard (landlord not exempt under § 18-16-303); No statutory cap for Exempt small landlords (landlord (with spouse, minor children, and affiliated entities) collectively owns 5 or fewer dwelling units AND self-manages — the exemption is lost if management, including rent collection, is performed by third persons for a fee (§ 18-16-303)).

Arkansas Security Deposit Rules

How the deposit limit varies

Scenario	Maximum deposit	Condition
Standard	2 months' rent	landlord not exempt under § 18-16-303
Exempt small landlords	No statutory cap	landlord (with spouse, minor children, and affiliated entities) collectively owns 5 or fewer dwelling units AND self-manages — the exemption is lost if management, including rent collection, is performed by third persons for a fee (§ 18-16-303)