Arkansas Rent Late Fees: 2025 Complete Guide

By RentLateFee Legal Team • November 21, 2025 • 12 min read

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Arkansas's Flexible Late Fee Framework

Arkansas provides landlords with significant flexibility in setting residential rent late fees, with no specific statutory cap on the amount or percentage that can be charged. However, the state's reasonableness standard and consumer protection laws create important guardrails that both landlords and tenants must understand in 2025.

This comprehensive guide examines Arkansas's late fee regulations, eviction procedures, grace period considerations, and best practices for compliance with state law.

No Statutory Cap: The Reasonableness Standard

Arkansas Code does not establish a maximum dollar amount or percentage for residential rent late fees. Unlike states with specific caps (such as Delaware's 5% or Connecticut's $5/day), Arkansas landlords can set fees at their discretion, subject to two key limitations:

1. Unconscionability Doctrine

Under Arkansas Code § 18-16-110, lease provisions that are "unconscionable" may be voided by courts. Courts evaluate whether late fees are:

Grossly excessive: Disproportionate to actual damages
Oppressive: Take unfair advantage of tenants
One-sided: Heavily favor the landlord without reasonable justification

2. Reasonableness Standard

While not codified in statute, Arkansas courts apply common law principles requiring late fees to:

Reflect actual costs and damages from late payment
Align with industry standards in the area
Be clearly disclosed in the lease
Not serve as a profit center for landlords

Source: Arkansas Code § 18-16-110

Industry Best Practices: 5-10% Range

Arkansas property managers and landlord associations typically recommend late fees of 5-10% of monthly rent as defensible:

Conservative Approach: 5-7%

$700 rent → $35-$49 late fee
$1,000 rent → $50-$70 late fee
$1,300 rent → $65-$91 late fee
$1,600 rent → $80-$112 late fee

Standard Approach: 8-10%

$700 rent → $56-$70 late fee
$1,000 rent → $80-$100 late fee
$1,300 rent → $104-$130 late fee
$1,600 rent → $128-$160 late fee

Risky Territory: Above 15%

Fees exceeding 15% of monthly rent face increased scrutiny and risk being deemed unconscionable or punitive, especially for lower-income tenants.

Source: Arkansas Landlord-Tenant Law Handbook

Grace Period Considerations

Arkansas law does not mandate a grace period before landlords can charge late fees. However, eviction procedures and practical considerations influence best practices:

No Grace Period Requirement for Late Fees

Technically, landlords can charge late fees the day after rent is due if the lease explicitly states this:

Rent due: October 1
Late fee begins: October 2 (if no grace period in lease)

5-Day Eviction Notice Period

Under Arkansas Code § 18-17-701, landlords must provide a 5-day written notice before filing eviction for nonpayment. This creates a practical grace period for eviction purposes, though not specifically for late fees.

Common Practice: 5-Day Grace Period

Most Arkansas landlords offer a 5-day grace period to align with eviction notice requirements and demonstrate good faith:

Rent due: November 1
Grace period: November 1-5
Late fees begin: November 6

Lease Controls

Whatever grace period is stated in the lease becomes binding. If a lease promises a 7-day grace period, the landlord cannot charge fees before day 8.

Source: Arkansas Code § 18-17-701

Eviction Process and Late Fees

5-Day Notice to Pay or Vacate

Arkansas Code § 18-17-701 requires landlords to provide a 5-day written notice before filing an eviction lawsuit for nonpayment of rent. The notice must:

Specify the exact rent amount owed
Provide 5 days for the tenant to pay
Warn that failure to pay will result in eviction proceedings

Can Late Fees Be Included in the Notice?

Arkansas law is silent on whether late fees can be included in the 5-day eviction notice. However, best practice is to exclude them for several reasons:

Including disputed fees gives tenants grounds to challenge the notice as defective
Courts may require landlords to restart the eviction process
Eviction is for unpaid rent, not late fees

Landlords should pursue late fees through:

Separate billing to tenants
Security deposit deductions at move-out
Small claims court actions

Source: Arkansas Code § 18-17-701

NSF (Bounced Check) Fees

Arkansas Code § 4-60-103 authorizes landlords to charge $30 for returned checks due to nonsufficient funds (NSF). This statutory fee:

Is separate from late fees (both can be charged if applicable)
Applies to checks, ACH transfers, and electronic payments
Must be disclosed in the lease
Is the maximum allowed by statute ($30 cap)

Example: Tenant submits a check for $900 rent on November 3, which bounces on November 5. Tenant pays cash on November 8. Landlord can charge:

NSF fee: $30
Late fee: $90 (if 10% and 5-day grace ended Nov 5)
Total owed: $900 + $30 + $90 = $1,020

Source: Arkansas Code § 4-60-103

Security Deposit Rules

Under Arkansas Code § 18-16-305, landlords can deduct unpaid late fees from security deposits, but must:

Provide an itemized statement within 60 days of tenant move-out
Include documentation proving fees were properly charged per lease terms
Return any remaining deposit to the tenant

Failure to provide the itemized statement within 60 days results in the landlord forfeiting all rights to deduct from the security deposit.

Source: Arkansas Code § 18-16-305

Key Arkansas Statutes

Landlords and tenants should familiarize themselves with:

Arkansas Code § 18-16-110: Unconscionable lease provisions
Arkansas Code § 18-17-701: Eviction procedures (5-day notice)
Arkansas Code § 18-16-305: Security deposit requirements (60-day deadline)
Arkansas Code § 4-60-103: NSF check fees ($30 maximum)
Arkansas Code § 18-16-101: Landlord obligations and tenant rights

Arkansas's Residential Landlord-Tenant Act governs most residential lease relationships statewide.

Landlord Best Practices

1. Draft Clear Lease Language

Include explicit late fee provisions stating:

Exact fee amount or percentage
Grace period (e.g., "Rent due 1st, late fee applies after 5th")
Whether fees are flat or daily
NSF fee amount ($30 maximum)
That fees represent estimated damages, not penalties

Sample Clause: "Rent is due on the 1st of each month. Tenant has a 5-day grace period. If rent is not received by the 5th, a late fee of $85 (7% of monthly rent) will be charged. This fee represents Landlord's reasonable estimate of administrative costs, lost opportunity costs, and damages associated with late payment."

2. Provide Written Notice of Late Fees

When charging fees, send documentation to tenants showing:

Original rent due date
Date payment was received (or not received)
Late fee calculation
New total balance

3. Maintain Detailed Records

Document all aspects of late fee policies:

Signed lease with fee provisions
Payment logs showing dates and amounts
Copies of all notices sent
Communication history with tenants

4. Apply Policies Consistently

Charge late fees uniformly across all tenants to avoid Fair Housing violations or discrimination claims.

5. Be Prepared to Justify Fees

If challenged, landlords should demonstrate:

Administrative time spent processing late payments
Bank fees or mortgage late charges incurred
Opportunity costs from delayed rent
Market rates charged by comparable properties

Tenant Rights and Protections

Right to Challenge Unreasonable Fees

Arkansas tenants can dispute excessive late fees through:

Written Communication: Notify landlord in writing that fees appear excessive
Payment Under Protest: Pay while reserving the right to contest
Small Claims Court: Sue for refund of improperly charged fees
Eviction Defense: Argue fees are unconscionable if included in eviction

Protection from Retaliation

Under Arkansas Code § 18-16-509, landlords cannot retaliate against tenants for:

Complaining to government agencies about property conditions
Exercising legal rights
Organizing tenant associations

Retaliatory actions include increasing late fees or imposing fees selectively.

Right to Repair and Deduct

Arkansas does not have a strong "repair and deduct" statute, but tenants may withhold rent for serious habitability issues. However, withholding rent does not excuse late fee obligations unless the landlord has materially breached the lease.

Example Late Fee Calculations

Scenario 1: $900 Monthly Rent, 5% Fee, 5-Day Grace

Rent due: March 1
Grace period ends: March 5
Tenant pays: March 8
Late fee: $900 × 5% = $45
Total owed: $945

Scenario 2: $1,200 Monthly Rent, 10% Fee, No Grace

Rent due: April 1
Tenant pays: April 3
Late fee: $1,200 × 10% = $120
Total owed: $1,320

Scenario 3: $750 Monthly Rent, $5/Day Daily Fee

Rent due: May 1
Grace period ends: May 5
Tenant pays: May 12
Days late: 7 (May 6-12)
Late fee: $5 × 7 = $35
Total owed: $785

Scenario 4: NSF Check Plus Late Fee

Rent due: June 1
Tenant submits check: June 2
Check bounces: June 4
Grace period ends: June 5
Tenant pays cash: June 9
NSF fee: $30
Late fee: $1,000 × 7% = $70 (assuming grace from due date)
Total owed: $1,000 + $30 + $70 = $1,100

Common Mistakes to Avoid

For Landlords:

Excessive Fees: Charging 20%+ invites legal challenge under unconscionability doctrine
Vague Lease Language: Terms like "reasonable fees" create disputes
Including Fees in Eviction Notice: May invalidate the notice if disputed
Inconsistent Enforcement: Waiving fees for some tenants but not others
Compounding Daily Fees: Without clear lease language and caps
Exceeding $30 NSF Fee: Statutory maximum cannot be exceeded

For Tenants:

Assuming Grace Periods Exist: Not required by law—check your lease
Refusing to Pay Rent Due to Fee Disputes: Can lead to eviction
Failing to Document Communication: Keep records of all payment dates
Not Challenging Excessive Fees: Paying without protest may waive rights
Missing the 5-Day Eviction Deadline: Pay within 5 days to avoid court

Frequently Asked Questions

Q: What is the maximum late fee in Arkansas?

A: Arkansas has no statutory maximum. Fees must be "reasonable" and not unconscionable, typically interpreted as 5-10% of monthly rent. Fees above 15% risk being voided.

Q: Is a grace period required in Arkansas?

A: No. Grace periods are not mandated by state law, though most landlords offer 5 days to align with eviction notice requirements. Check your lease for specific terms.

Q: Can my landlord evict me for unpaid late fees?

A: Technically yes, but landlords should exclude late fees from the 5-day eviction notice. Fees are typically pursued through security deposit deductions or small claims court.

Q: What if my check bounces?

A: Arkansas law allows landlords to charge up to $30 for NSF checks, in addition to any late fees that apply once the grace period expires.

Q: Can late fees be charged daily?

A: Yes, if clearly stated in the lease (e.g., "$5 per day after grace period"). Daily fees must still be reasonable overall.

Q: What if I disagree with a late fee?

A: Notify your landlord in writing explaining why the fee appears excessive. If unresolved, you can pay under protest and sue in small claims court for a refund, or challenge the fee if included in an eviction action.

Q: How long does my landlord have to return my security deposit?

A: 60 days from move-out. If the landlord fails to provide an itemized statement within 60 days, they forfeit all rights to deduct any amounts, including late fees.

Conclusion

Arkansas's flexible late fee framework gives landlords discretion while requiring reasonableness and good faith. Landlords should use fees in the 5-10% range with clear lease language and consistent enforcement. Tenants should review their leases carefully, understand their rights, and challenge excessive fees promptly.

Key Takeaways:

No statutory cap—reasonableness standard applies
5-10% of monthly rent is industry best practice
5-day eviction notice required; late fees should be excluded
$30 maximum NSF fee
60-day deadline for security deposit itemization
Grace periods not required but commonly 5 days

Use the RentLateFee.com calculator to verify Arkansas late fee compliance and ensure your fees align with state law. Whether setting landlord policies or checking tenant charges, understanding these rules protects your rights and avoids costly disputes.

Last Updated: November 2025. Consult with an Arkansas-licensed attorney for specific legal advice.

🔗 Related State Guides

Understanding late fee regulations in neighboring states can help you compare different approaches and understand regional trends. Here are related state guides:

Additional Resources

Rent Late Fee Calculator - Calculate your state's legal maximum
Rent Grace Period Laws by State - Compare grace period requirements
Security Deposit Laws - Understand deposit regulations