SECURITY DEPOSIT DEMAND LETTER

STATE OF ARKANSAS

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Arkansas law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable statutory penalties, damages, and attorney's fees.

I. ARKANSAS LEGAL FRAMEWORK

A. Governing Law

Security deposits in Arkansas are governed by the Arkansas Security Deposit Act, Ark. Code Ann. Section 18-16-301 et seq.

B. Security Deposit Limits

Under Ark. Code Ann. Section 18-16-304, a landlord may not demand or receive a security deposit in excess of two months' rent.

C. Return Deadline

Pursuant to Ark. Code Ann. Section 18-16-305, a landlord must return the security deposit within sixty (60) days after the termination of the tenancy.

If the landlord intends to make any deductions, they must provide:
- An itemized list of damages
- The estimated cost of repair for each item
- Delivery within the 60-day period

D. Separate Account Requirement

Arkansas law does not require that security deposits be held in a separate, interest-bearing account. No interest is due to tenants on their deposits.

E. Permissible Deductions

Under Ark. Code Ann. Section 18-16-305, a landlord may retain from the security deposit only amounts for:
- Unpaid rent
- Damages to the premises beyond normal wear and tear
- Other charges as specified in the rental agreement

F. Tenant Obligations

Under Ark. Code Ann. Section 18-16-306, the tenant must:
- Provide a forwarding address in writing
- Allow the landlord to inspect the premises before or at termination

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email

Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered

C. Condition of Premises at Move-Out

Our Client left the premises in the following condition:

[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.

[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].

[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.

[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.

[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.

III. LANDLORD'S VIOLATIONS

You have violated Arkansas law in the following ways:

[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 60-day period required under Ark. Code Ann. Section 18-16-305.

[ ] Failure to Provide Itemization: You have failed to provide a written, itemized list of damages and estimated costs within the statutory period.

[ ] Excessive Security Deposit: You collected a security deposit exceeding two months' rent in violation of Ark. Code Ann. Section 18-16-304.

[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]

[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]

IV. NORMAL WEAR AND TEAR

Arkansas law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.

The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:

[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]

V. DAMAGES AND PENALTIES

A. Return of Security Deposit

B. Statutory Penalties

Under Ark. Code Ann. Section 18-16-306, if a landlord wrongfully refuses to return a security deposit, the tenant may recover:

• The amount of the deposit wrongfully withheld; PLUS
• An amount equal to the deposit wrongfully withheld (i.e., double damages)

Penalty Calculation:
- Amount Wrongfully Withheld: $[AMOUNT]
- Double Damages: $[AMOUNT]
- Total: $[AMOUNT]

C. Attorney's Fees and Costs

Under Ark. Code Ann. Section 18-16-306, a tenant who prevails in an action for wrongful withholding is entitled to recover reasonable attorney's fees.

D. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence to support this claim:

[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]

VII. DEMAND

We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:

1. Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]

2. Statutory Penalties: Pay to our Client the statutory penalty for wrongful withholding: $[AMOUNT]

3. Total Payment: The total amount due is $[TOTAL AMOUNT]

Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT NAME] Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the time specified, we are authorized and prepared to:

1. File Suit: Commence legal action in Arkansas Small Claims Division (for claims up to $5,000) or Circuit Court for return of the deposit, statutory penalties, attorney's fees, and costs.

2. Seek Maximum Penalties: Request the court impose double damages for wrongful withholding pursuant to Ark. Code Ann. Section 18-16-306.

3. Seek Attorney's Fees: Request the court award reasonable attorney's fees pursuant to Ark. Code Ann. Section 18-16-306.

4. Report Violations: Report your conduct to:
   - Arkansas Attorney General - Consumer Protection Division
   - Local Housing Authority
   - Better Business Bureau

5. Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.

IX. RESPONSE REQUESTED

Please respond to this demand in writing within fourteen (14) days. Your response should include:

1. Your position on the amount owed to our Client
2. Any documentation supporting claimed deductions
3. Payment or a good-faith settlement offer

If we do not receive a satisfactory response, we will file suit without further notice.

X. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
[ARKANSAS BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

ARKANSAS SECURITY DEPOSIT QUICK REFERENCE

ARKANSAS-SPECIFIC PRACTICE NOTES

[ ] Forwarding Address Requirement: The tenant must provide a forwarding address in writing. Failure to do so may affect the tenant's right to recover the deposit.

[ ] Inspection Right: The tenant must allow the landlord to inspect the premises. Document all inspections and their outcomes.

[ ] 60-Day Window: Arkansas has one of the longer return periods at 60 days. Track deadlines carefully.

[ ] Double Damages: Arkansas provides for double damages (100% penalty) for wrongful refusal to return the deposit.

[ ] Small Claims Division: For claims up to $5,000, file in the Small Claims Division of District Court. For larger amounts, file in Circuit Court.

[ ] No URLTA: Arkansas has not adopted the Uniform Residential Landlord and Tenant Act; the Security Deposit Act is a separate statutory scheme.

[ ] Written Lease Recommended: While oral leases are valid, a written lease makes it easier to establish deposit terms and conditions.

This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed Arkansas attorney before use.