Renting Out Your Property in Arkansas: A Guide for Landlords
Renting out property in Arkansas requires understanding specific state laws that govern landlord-tenant relationships, including the Arkansas Residential Landlord-Tenant Act. Arkansas landlords must navigate unique regulations regarding security deposits, eviction procedures, and property maintenance standards that differ significantly from other states.
Arkansas is the only state in the US that does not imply a warranty of habitability in residential leases, giving landlords fewer maintenance obligations but also creating potential liability issues. Landlords should still maintain safe properties and understand that failure to make certain repairs could result in tenant remedies under other laws.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Relevant Laws
Arkansas Residential Landlord-Tenant Act of 2007
This is the primary law governing residential rental agreements in Arkansas. It covers security deposits (limited to two months' rent), lease requirements, and landlord access to property. Unlike most states, Arkansas does not impose an implied warranty of habitability, giving landlords fewer maintenance obligations.
Arkansas Code § 18-16-101 - Failure to Pay Rent
Arkansas is unique as the only state where failure to pay rent can be a criminal offense. This law allows landlords to pursue criminal charges against tenants who fail to pay rent and refuse to vacate the property, which can result in fines and even jail time for tenants.
Arkansas Code § 18-17-701 - Eviction Procedures
This statute outlines the legal process for evicting tenants in Arkansas. Landlords must provide at least 3 days' written notice before filing an unlawful detainer action. Arkansas offers landlords some of the fastest eviction procedures in the country.
Arkansas Code § 18-17-501 - Security Deposit Requirements
This law regulates how landlords must handle security deposits, including the maximum amount (two months' rent) and the timeframe for returning deposits (within 60 days of lease termination). Landlords must provide an itemized list of deductions if not returning the full amount.
Arkansas Fair Housing Law
This law prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. Landlords must ensure their tenant selection process and rental policies comply with these fair housing requirements.
Arkansas Code § 18-17-602 - Landlord's Access to Dwelling Unit
This statute defines when and how landlords may legally enter a tenant's rental unit. Generally, landlords must provide reasonable notice (typically 24 hours) before entering except in emergencies. Understanding these rules helps prevent privacy violation claims.
Regional Variances
Northwest Arkansas
Fayetteville has additional rental property registration requirements. Landlords must register their rental properties with the city and pay an annual fee. The city also conducts periodic inspections to ensure compliance with building codes and safety standards.
Bentonville has stricter short-term rental regulations due to tourism around the Crystal Bridges Museum and Walmart headquarters. Property owners must obtain a specific short-term rental permit and may face occupancy restrictions.
Central Arkansas
Little Rock has enacted more tenant-friendly ordinances than state law requires. The city has additional requirements for security deposit handling, including mandatory itemized deductions and faster return timelines (14 days versus the state's 30 days).
North Little Rock has implemented a rental inspection program that requires landlords to have their properties inspected before renting to new tenants. The city also has specific requirements for smoke detectors and carbon monoxide detectors.
Northeast Arkansas
Jonesboro has additional requirements for rental properties located near Arkansas State University. These include noise ordinances, occupancy limits, and parking restrictions that are more stringent than in other parts of the city.
South Arkansas
Pine Bluff has implemented a rental property registry program to combat blight. Landlords must register their properties and submit to regular inspections. Failure to maintain properties to code can result in significant fines.
Hot Springs has special zoning regulations for vacation rentals due to its status as a tourist destination. Property owners in certain areas must obtain specific permits for short-term rentals and comply with additional tax collection requirements.
Suggested Compliance Checklist
Research Arkansas Landlord-Tenant Laws
0 days after startingFamiliarize yourself with Arkansas landlord-tenant laws, which are notably different from many other states. Arkansas is the only state that does not imply a warranty of habitability and has criminal eviction statutes. Review the Arkansas Code Title 18, Chapter 16 (Landlord and Tenant) and Chapter 17 (Arkansas Residential Landlord-Tenant Act of 2007).
Obtain Necessary Business Licenses
7 days after startingCheck with your local city or county government to determine if you need a rental property business license. Requirements vary by municipality in Arkansas. For example, Little Rock requires rental property owners to obtain a business license.
Draft Rental Property Business License Application
14 days after startingPrepare the application for your rental property business license based on your local municipality's requirements. Include property information, owner details, and any required fee information.
Check Zoning and Rental Regulations
14 days after startingVerify that your property is zoned for rental use and complies with any local rental ordinances or restrictions. Some Arkansas municipalities have specific rental housing codes or inspection requirements.
Prepare a Rental Application Form
21 days after startingCreate a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment information, income verification, references, and authorization for background and credit checks. Ensure compliance with Fair Housing laws which prohibit discrimination based on protected classes.
Create a Residential Lease Agreement
28 days after startingDraft a legally compliant lease agreement specific to Arkansas laws. Include terms regarding rent amount, due date, late fees (Arkansas has no statutory limit on late fees), security deposit (no statutory limit in Arkansas), lease term, maintenance responsibilities, and grounds for eviction. Arkansas allows for more landlord-friendly provisions than many states.
Develop Landlord's Rules and Regulations
28 days after startingCreate a clear set of rules and regulations for your rental property. Include policies on pets, smoking, noise, guests, maintenance expectations, parking, and other property-specific guidelines. These should be referenced in your lease agreement and provided to tenants.
Prepare a Lead-Based Paint Disclosure Form
35 days after startingFor properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Create or obtain the EPA-approved disclosure form and the EPA pamphlet 'Protect Your Family from Lead in Your Home' to provide to tenants.
Create a Move-In/Move-Out Inspection Checklist
35 days after startingDevelop a detailed checklist to document the condition of the property at move-in and move-out. Include all rooms, fixtures, appliances, and exterior areas. This documentation is crucial for security deposit disputes, which are governed by Arkansas law.
Prepare a Security Deposit Receipt
35 days after startingCreate a receipt for security deposits that includes the amount received, date, property address, and tenant information. While Arkansas does not limit the amount of security deposits or require them to be held in separate accounts, proper documentation is still important.
Draft a Notice of Entry Form
35 days after startingCreate a form to notify tenants when you need to enter the property. Arkansas does not have a statutory notice requirement for landlord entry, but providing notice is a good practice to maintain tenant relations and could be specified in your lease.
Set Up Property Insurance
42 days after startingObtain appropriate landlord insurance coverage for your rental property. Standard homeowners insurance typically doesn't cover rental activities. Ensure you have adequate liability coverage and property protection.
Establish Rent Collection System
42 days after startingSet up a system for collecting and tracking rent payments. Consider online payment options, which methods you'll accept, and how you'll document payments received.
Prepare for Property Maintenance
49 days after startingEstablish relationships with reliable contractors and develop a system for handling maintenance requests. While Arkansas does not imply a warranty of habitability, maintaining the property is still important for tenant retention and property value.
Learn Eviction Procedures
49 days after startingFamiliarize yourself with Arkansas's unique eviction laws, which include both civil and criminal options. Arkansas is the only state with a criminal eviction statute (failure to vacate), though this has faced legal challenges. Understand the proper procedures to avoid legal complications.
Register with Tax Authorities
56 days after startingEnsure you're registered to pay all applicable taxes on rental income. This includes federal income tax and potentially state and local taxes. Some Arkansas municipalities may have specific taxes on rental properties.
Task | Description | Document | Days after starting |
---|---|---|---|
Research Arkansas Landlord-Tenant Laws | Familiarize yourself with Arkansas landlord-tenant laws, which are notably different from many other states. Arkansas is the only state that does not imply a warranty of habitability and has criminal eviction statutes. Review the Arkansas Code Title 18, Chapter 16 (Landlord and Tenant) and Chapter 17 (Arkansas Residential Landlord-Tenant Act of 2007). | - | 0 |
Obtain Necessary Business Licenses | Check with your local city or county government to determine if you need a rental property business license. Requirements vary by municipality in Arkansas. For example, Little Rock requires rental property owners to obtain a business license. | - | 7 |
Draft Rental Property Business License Application | Prepare the application for your rental property business license based on your local municipality's requirements. Include property information, owner details, and any required fee information. | Rental Property Business License | 14 |
Check Zoning and Rental Regulations | Verify that your property is zoned for rental use and complies with any local rental ordinances or restrictions. Some Arkansas municipalities have specific rental housing codes or inspection requirements. | - | 14 |
Prepare a Rental Application Form | Create a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment information, income verification, references, and authorization for background and credit checks. Ensure compliance with Fair Housing laws which prohibit discrimination based on protected classes. | Rental Application Form | 21 |
Create a Residential Lease Agreement | Draft a legally compliant lease agreement specific to Arkansas laws. Include terms regarding rent amount, due date, late fees (Arkansas has no statutory limit on late fees), security deposit (no statutory limit in Arkansas), lease term, maintenance responsibilities, and grounds for eviction. Arkansas allows for more landlord-friendly provisions than many states. | Residential Lease Agreement | 28 |
Develop Landlord's Rules and Regulations | Create a clear set of rules and regulations for your rental property. Include policies on pets, smoking, noise, guests, maintenance expectations, parking, and other property-specific guidelines. These should be referenced in your lease agreement and provided to tenants. | Landlord's Rules and Regulations | 28 |
Prepare a Lead-Based Paint Disclosure Form | For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Create or obtain the EPA-approved disclosure form and the EPA pamphlet 'Protect Your Family from Lead in Your Home' to provide to tenants. | Lead-Based Paint Disclosure Form | 35 |
Create a Move-In/Move-Out Inspection Checklist | Develop a detailed checklist to document the condition of the property at move-in and move-out. Include all rooms, fixtures, appliances, and exterior areas. This documentation is crucial for security deposit disputes, which are governed by Arkansas law. | Move-In/Move-Out Inspection Checklist | 35 |
Prepare a Security Deposit Receipt | Create a receipt for security deposits that includes the amount received, date, property address, and tenant information. While Arkansas does not limit the amount of security deposits or require them to be held in separate accounts, proper documentation is still important. | Security Deposit Receipt | 35 |
Draft a Notice of Entry Form | Create a form to notify tenants when you need to enter the property. Arkansas does not have a statutory notice requirement for landlord entry, but providing notice is a good practice to maintain tenant relations and could be specified in your lease. | Notice of Entry Form | 35 |
Set Up Property Insurance | Obtain appropriate landlord insurance coverage for your rental property. Standard homeowners insurance typically doesn't cover rental activities. Ensure you have adequate liability coverage and property protection. | - | 42 |
Establish Rent Collection System | Set up a system for collecting and tracking rent payments. Consider online payment options, which methods you'll accept, and how you'll document payments received. | - | 42 |
Prepare for Property Maintenance | Establish relationships with reliable contractors and develop a system for handling maintenance requests. While Arkansas does not imply a warranty of habitability, maintaining the property is still important for tenant retention and property value. | - | 49 |
Learn Eviction Procedures | Familiarize yourself with Arkansas's unique eviction laws, which include both civil and criminal options. Arkansas is the only state with a criminal eviction statute (failure to vacate), though this has faced legal challenges. Understand the proper procedures to avoid legal complications. | - | 49 |
Register with Tax Authorities | Ensure you're registered to pay all applicable taxes on rental income. This includes federal income tax and potentially state and local taxes. Some Arkansas municipalities may have specific taxes on rental properties. | - | 56 |
Frequently Asked Questions
In Arkansas, a valid lease agreement should include the names of all parties, property address, lease term, rent amount, security deposit details, maintenance responsibilities, and rules regarding entry to the property. While oral leases can be valid for terms less than one year, written leases are strongly recommended to avoid disputes. Arkansas follows the Uniform Residential Landlord and Tenant Act, which provides the legal framework for rental relationships.
Arkansas law does not set a maximum limit on security deposits for residential properties. However, landlords typically charge between one and two months' rent. You must return the security deposit within 60 days after the tenant moves out, along with an itemized list of any deductions. If you fail to comply with these requirements, you may be liable for damages up to twice the amount wrongfully withheld.
As an Arkansas landlord, you must maintain the property in a habitable condition, including maintaining electrical, plumbing, sanitary, heating, ventilating, and air-conditioning systems. You must also comply with applicable building and housing codes. However, Arkansas is unique in that it's the only state that doesn't imply a warranty of habitability in residential leases, giving landlords more flexibility but still requiring basic maintenance standards to be met.
Arkansas law requires landlords to provide at least 24 hours' notice before entering a tenant's unit for non-emergency reasons, such as repairs or showings. The notice should specify the purpose of entry and the intended time. For emergencies that threaten the property or safety, you may enter without notice. Always include entry provisions in your lease agreement to avoid disputes.
Arkansas offers landlords two eviction methods: civil eviction and criminal eviction (unique to Arkansas). For civil eviction, you must provide a written notice (typically 3 days for non-payment of rent), file an unlawful detainer action if the tenant doesn't comply, and attend a court hearing. The criminal eviction process (failure to vacate) makes it a misdemeanor for tenants to remain after proper notice. However, the criminal process is controversial and not available in all counties. Consult with an attorney before proceeding with any eviction.
No, Arkansas landlords must comply with the federal Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. While Arkansas doesn't have additional state-level protections, federal law applies throughout the state. Violations can result in significant penalties, including fines and damages. Always establish clear, non-discriminatory tenant selection criteria based on factors like credit history, income verification, and rental history.
Arkansas doesn't have a statewide landlord registration requirement. However, some municipalities may have local registration or licensing requirements. Check with your local city or county government to determine if any local regulations apply. Additionally, if you're operating rental property as a business entity, you may need to register with the Arkansas Secretary of State. Property managers who handle rentals for others typically need a real estate license in Arkansas.
Rental income in Arkansas is subject to federal income tax and Arkansas state income tax. You can deduct expenses such as mortgage interest, property taxes, insurance, repairs, and depreciation. Arkansas also has property taxes that vary by county and municipality. If your property is in a different county from your primary residence, be aware that non-owner-occupied properties may be assessed at a higher rate. Consider consulting with a tax professional familiar with Arkansas tax laws to maximize deductions and ensure compliance.
Arkansas law doesn't specifically mandate that landlords provide particular amenities or utilities. The lease agreement should clearly state which utilities are the landlord's responsibility and which are the tenant's. If you do provide utilities, you must maintain them in working order. While Arkansas doesn't have an implied warranty of habitability, basic services like water, heat, and electricity are generally expected for a property to be considered livable. Always specify utility responsibilities in your lease agreement.
A comprehensive Arkansas rental application should include: personal information (name, contact details, Social Security number), current and previous addresses, employment information and income verification, references (personal and landlord), authorization for background and credit checks, and emergency contacts. You may charge an application fee to cover screening costs, but this should be reasonable and disclosed upfront. Be consistent in your application requirements for all prospective tenants to avoid discrimination claims.