How to Hold and Return a Security Deposit in Arkansas

In Arkansas, you may not charge your subtenant a security deposit that exceeds two months' rent.

Storing the Deposit

Arkansas laws offer no guidance on how to store the security deposit. Most states ask that you store it in a bank account separate from your personal finances.

Returning the Deposit

You can keep all or some of a subtenant’s security deposit if the unit is returned to you with damages that exceed normal wear and tear or if you need to cover unpaid rent. You have 30 days after the end of the sublease term to return the security deposit. If you plan to withhold any amount from the security deposit, you must mail a written, itemized list of damages or rent owed via first class mail to the subtenant's last known address. If the letter is returned and you make an effort to locate the subtenant unsuccessfully, the security deposit is yours to keep after 180 days.