Arkansas Real Estate Exam: Landlord-Tenant Law Essentials
Last updated: April 2026
For real estate candidates preparing for the Arkansas real estate licensing exam, mastering property management and leasing regulations is essential. Landlord-tenant laws in Arkansas possess several unique characteristics compared to other states, making them a frequent target for state-specific exam questions. Whether you plan to specialize in property management or simply want to pass your exam on the first try, you must understand the statutory guidelines governing lease agreements, security deposits, and eviction procedures.
This article dives deep into the essentials of Arkansas Code Title 18, Chapter 16, providing you with the authoritative knowledge needed to ace the exam. For a broader overview of all tested topics, visit our Complete Arkansas Exam Guide.
Understanding Arkansas Code Title 18, Chapter 16
In Arkansas, the relationship between property owners and renters is governed primarily by Title 18, Chapter 16 of the Arkansas Code. Real estate licensees acting as property managers must strictly adhere to these statutes to protect their clients from liability and ensure fair treatment of tenants.
The 2021 Implied Warranty of Habitability (Act 1052)
Historically, Arkansas was famous in real estate circles for being the only state in the U.S. without an "implied warranty of habitability." However, this changed significantly with the passage of Act 1052 of 2021. Exam candidates must know this modern standard: Landlords are now required to provide minimum habitability standards at the time a tenant takes possession of a residential property.
Under Act 1052, a rental property must have:
- An available source of hot and cold running water.
- An available source of electricity.
- A source of potable drinking water.
- A functioning roof and building envelope.
- A functioning sanitary sewer or septic system.
Practical Scenario: If a tenant moves into a property and discovers the plumbing is entirely disconnected, the landlord is in violation of Act 1052. The tenant may have the right to terminate the lease without penalty if the landlord fails to cure the defect within 30 days of receiving written notice.
Security Deposit Regulations in Arkansas
Security deposits are heavily regulated and frequently tested. As a real estate agent handling leasing, you must know the exact timelines and financial limits imposed by Arkansas law.
Maximum Limits and Return Deadlines
Arkansas law caps the maximum security deposit a landlord can charge at two months' rent. Once a lease terminates and the tenant vacates the property, the landlord has exactly 60 days to return the security deposit.
If the landlord makes deductions for damages or unpaid rent, they must provide the tenant with a written, itemized list of charges along with the remaining balance of the deposit within that 60-day window.
Key Statutory Timeframes in Arkansas Landlord-Tenant Law
The "Six-Unit Exemption" Rule
Here is a critical nuance that often appears as a trick question on the Arkansas real estate exam: The standard security deposit rules (including the 60-day return deadline and the two-month maximum) do not apply to landlords who own five or fewer rental units.
However, there is an exception to the exemption: If those units are managed by a third party for a fee—such as a licensed real estate broker or property management company—the security deposit laws do apply, regardless of how few units the owner possesses. Property managers handling these funds must also understand how to hold them in trust accounts; learn more in our guide on Arkansas earnest money and escrow.
Eviction Procedures: Civil vs. Criminal
Arkansas is unique in that it offers landlords both civil and criminal avenues for dealing with tenants who fail to pay rent. Understanding the distinction between these two processes is vital for the state portion of your exam.
Unlawful Detainer (Civil Eviction)
The standard civil eviction process in Arkansas is known as "Unlawful Detainer." If a tenant fails to pay rent when due, the landlord can issue a 3-day written notice to vacate the premises. If the tenant does not leave within three days, the landlord can file an unlawful detainer lawsuit.
It is important to note that Arkansas strictly prohibits "self-help" evictions. A landlord cannot legally change the locks, shut off utilities, or physically remove a tenant's belongings without a court order.
Failure to Vacate (Criminal Eviction)
Arkansas is the only state where failing to pay rent and refusing to leave can be treated as a criminal misdemeanor under the "Failure to Vacate" statute. Under this law, if rent is overdue, the landlord can give a 10-day written notice to vacate. If the tenant remains on the property after 10 days, they can be cited by law enforcement and fined for each day they remain in the property.
Note for exam takers: While this law has faced numerous legal challenges and its enforcement varies by county, it remains on the books and is a testable concept regarding Arkansas's unique landlord-tenant framework.
Agent Responsibilities in Property Management
When a licensed real estate agent engages in property management, they are held to the standards of the Arkansas Real Estate Commission (AREC). An agent cannot independently manage properties or collect rents outside of their brokerage. All property management agreements must be in writing and signed by the principal broker.
If you're planning to manage property as a salesperson, you must operate strictly under your principal broker's supervision. Review our article on Arkansas broker vs. agent responsibilities for clarity on what you can and cannot do independently. Furthermore, staying updated on changing property management laws—like the recent habitability updates—is a core part of your Arkansas continuing education requirements.
Frequently Asked Questions
Does Arkansas have commercial or residential rent control laws?
No. Arkansas law prohibits local municipalities from enacting rent control ordinances. Landlords are free to set rent prices at market rates and increase them at the end of a lease term, provided proper notice is given.
How much notice is required to terminate a month-to-month lease in Arkansas?
Under Arkansas law, either the landlord or the tenant must provide a minimum of 30 days' written notice to terminate a month-to-month tenancy. The notice must be given prior to the start of the next rental period.
Can an Arkansas landlord withhold a security deposit for normal wear and tear?
No. Security deposits can only be withheld for unpaid rent, late fees, or physical damage to the property that exceeds "normal wear and tear." Routine painting, carpet cleaning, or minor scuffs generally cannot be deducted from the deposit.
What happens if a landlord fails to return the security deposit within 60 days?
If a landlord (who is not exempt under the six-unit rule) fails to return the deposit or provide an itemized list of deductions within 60 days, they forfeit the right to keep any portion of the deposit. Furthermore, the tenant may sue for up to twice the amount wrongfully withheld, plus attorney's fees.
Are landlords required to provide appliances in Arkansas?
No. While Act 1052 requires functional plumbing, heating, and electricity, Arkansas law does not mandate that landlords provide appliances such as refrigerators, stoves, or washer/dryer units unless explicitly stated in the lease agreement. If provided, the lease should dictate who is responsible for their maintenance.
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