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Cap rate calculator
The cap rate calculator is used to understand and compare the potential return on investment from an investment property.
Enter the current market value or purchase price of the property. This is the basis for determining the capitalization rate.
Input the total yearly income generated by the property, including rent, fees, and any other sources of revenue, before expenses.
Input the percentage of annual gross income that represents the property's total operating expenses. This is an alternative way to represent operating expenses if the exact dollar amount is unknown.
Enter the annual dollar amount of all costs associated with managing and maintaining the property, such as utilities, taxes, insurance, and repairs.
Input the estimated percentage of time the property is unoccupied or not generating income. This accounts for potential income loss due to vacancies.
This field displays the calculated yearly income after subtracting operating expenses and adjusting for vacancy rate. This figure is used to determine the capitalization rate and evaluate the property's potential return on investment.
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ResourcesseparatorLegal for Real Estate Investors

Arkansas Property Management Laws & Landlord-Tenant Laws

Key takeaways

Arkansas Property Management Laws & Landlord-Tenant Laws

In Arkansas, property owners must adhere to specific local laws and regulations concerning their investments. These rules vary across different states and counties, complicating the identification of legal actions in various leasing scenarios. This guide offers both investors and tenants a fundamental understanding of their rights and responsibilities, enabling them to navigate rental issues legally and effectively. 

Key Arkansas landlord, tenant and property management laws include: 

  • No specific statute governs rental application fees in Arkansas, but landlords must obtain consent for background checks and cannot discriminate against potential tenants.
  • Landlords can charge a maximum security deposit of twice the monthly rent, and they must return it within 30 days after the tenant’s departure, unless there are charges for repairs, cleaning, unpaid rent, or other fees.
  • Lease terms in Arkansas are generally at-will and based on a monthly basis. If a tenant breaches the lease, the landlord must issue a notice for the tenant to rectify the violation or risk eviction.
  • Service members may break their lease without penalty due to relocation requirements. Landlords must change locks at the tenant's request and expense if the tenant is a victim of domestic violence.
  • Arkansas law doesn't mandate landlords to disclose property ownership or mold-related issues. However, for structures built before 1978, landlords must adhere to the EPA's requirement of tenants signing a disclosure form about potential lead-based paint.
  • Landlords in Arkansas are not obliged to provide advance notice before entering properties. They also bear no responsibility for ongoing maintenance, with tenants expected to maintain cleanliness and safety.
  • In Arkansas, landlords are not legally obligated to perform repairs or maintenance in rental homes. Tenants can file a formal complaint if their housing does not meet safe and habitable standards, but rent must always be paid in full and on time, regardless of any outstanding repairs.

Arkansas Rental Application Laws

In Arkansas, no specific statute governs the amount a landlord can charge for an application fee, though local and federal laws may apply. Landlords are required to obtain consent from prospective tenants before conducting a background check, in accordance with federal Fair Housing laws. Furthermore, these laws prohibit landlords from discriminating against potential tenants based on their sexuality, gender, family status, color, nationality, age, or disability. 

Arkansas Security Deposit Laws

In Arkansas, landlords can charge additional move-in fees, such as application and pet fees. The maximum security deposit allowed is twice the monthly rent. There is no specific requirement on how landlords must hold the security deposit, but it's typically kept in a federally secured bank.

The landlord must return the security deposit within 30 days after the tenant’s departure, unless there are charges for repairs, cleaning, unpaid rent, or other fees. In such cases, an itemized receipt must be provided. If the landlord fails to return the deposit, tenants can sue for twice the amount of the deposit and associated legal costs.

Landlords have 180 days to return abandoned security deposits. After this period, they can retain the deposit. However, landlords with five or fewer properties not managed by a paid property manager are exempt from these regulations. 

Arkansas Laws About Leases and Lease Termination

Lease terms in Arkansas are generally at-will and based on a monthly basis, with details such as rent cost, due date, late fee charges, tenant behavior, landlord entry notice, and security deposit amount specified in the lease. If a tenant breaches the lease, the landlord must issue a notice for the tenant to rectify the violation or risk eviction. For month-to-month lease termination, a 10-day period is given for the tenant to pay overdue rent and avoid eviction. Termination of a term lease without penalty is not permissible under Arkansas law.

Service members may break their lease without penalty due to relocation requirements under federal laws. Landlords are prohibited from discriminating against domestic violence victims and must change locks at the tenant's request and expense. Landlords can regain control of the property through legal action if the tenant fails to remedy the lease violation after proper notice. If a tenant overstays by 30 days after receiving a notice to quit, they are liable for twice the monthly rent for each day past the lease termination date.

Arkansas law does not specify a timeline for landlords to notify tenants about property changes that result in tenancy termination. Rent increase requires a 30-day notice. There are no state regulations on the maximum rent charge or grace period for late fee, and rent control is not practiced at the state level. Late fee assessment and amount must be stated in the lease to be legally valid. 

Arkansas Legally Required Disclosures

Arkansas law doesn't mandate landlords to disclose property ownership or mold-related issues. However, for structures built before 1978, landlords must adhere to the EPA's requirement of tenants signing a disclosure form about potential lead-based paint. Owners can appoint any agent to manage their property finances, with no legal restrictions.

Arkansas landlords are not obliged to provide advance notice before entering properties. They also bear no responsibility for ongoing maintenance, with tenants expected to maintain cleanliness and safety. There are no legal requirements for landlords to supply or maintain utilities or provide locks and keys.

Landlords in Arkansas are prohibited from retaliatory actions against tenants, such as increasing rent, initiating eviction, or reducing services, following a tenant's request for repairs or complaints to housing or health authorities. 

Arkansas Property Maintenance and Repair Laws

In Arkansas, landlords are not legally obligated to perform repairs or maintenance in rental homes, making it crucial to have a written lease outlining these responsibilities. This should include the process for making repair requests, the timeline for completion, and any tenant maintenance duties.

Landlords are not responsible for damage caused by tenants, with security deposits serving as financial insurance for such instances. Tenants can file a formal complaint if their housing does not meet safe and habitable standards.

However, Arkansas law stipulates that rent must always be paid in full and on time, regardless of any outstanding repairs. Failure to do so can result in eviction. 

Bottom Line

Arkansas property management laws have unique aspects that both landlords and tenants need to understand. While landlords have certain freedoms, such as not being legally obligated to perform repairs or maintenance, they also have responsibilities, such as returning security deposits promptly and not discriminating against potential tenants. Tenants, on the other hand, have the right to live in habitable conditions and can file formal complaints if these standards are not met. However, they are also required to maintain cleanliness and safety and pay rent on time, regardless of any outstanding repairs. Understanding these laws can help maintain a healthy landlord-tenant relationship and prevent potential legal disputes.

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