Arkansas Rent Increase Laws

Is there a rent increase limit in Arkansas? 

While many states cap rent increases, Arkansas doesn’t. Let’s discuss statewide caps, local rent control ordinances, and exceptions.

Statewide caps: Arkansas law doesn’t set a limit on increases. You can raise the price by any amount, but it must be reasonable. To determine an appropriate increase, consider your local market rate.

Your property’s features, square footage, and the current renter demand determine the market rate. Top landlords use it to calculate a competitive price that keeps them in line with comparable listings.

Local rent control ordinances: In Arkansas, a county or city can’t enforce its own rent control policies (Ark. Code § 14-16-601). However, federal or subsidized housing programs, such as Section 8, may still regulate rent increases.

Exceptions: Even though Arkansas doesn’t have rent control, state law doesn’t specify exceptions for government programs.

Rent Increase Notice Periods

In Arkansas, the notice period depends on the type of lease agreement you use.

Fixed-Term Lease

You can’t raise a tenant’s rent in the middle of a fixed-term lease. Landlords can only adjust their prices when the lease renews, and they’re updating the terms for the new tenancy.

Pro Tip: Even though state law doesn’t require it, give your tenants advance notice before increasing rent. We think 30 days’ notice is a best practice. After all, no tenant wants to be surprised at renewal.

Month-to-Month Lease

State law does mandate notice requirements for tenancy-at-will, aka month-to-month, arrangements. If you’re using a month-to-month agreement, you must give tenants 30 days’ written notice before raising rent. And if you have a week-to-week arrangement, you must give tenants 7 days’ notice in writing (Ark. Code § 18-17-704).

Room Rental Agreements

Arkansas law requires the same notice periods for room rental agreements. Here’s a quick recap:

• 30 days’ notice for month-to-month leases
• 7 days’ notice for week-to-week arrangements (Ark. Code § 18-17-704)

Arkansas law doesn’t require you to give advance notice for fixed-term leases, but extend your tenants the courtesy anyway. We recommend giving them at least a 30-day heads-up so they can plan their next move.

How to Deliver a Rent Increase Notice in Arkansas

Arkansas rent increase laws don’t specify delivery methods. However, we recommend using one of the following methods:

• Hand delivery,
• Certified Mail,
• Posting it on the property, or
• Electronic notices (via landlord software).

If you’re going to send the letter digitally, make sure you add a clause in your lease allowing electronic notices.

When you hand-deliver the notice or send it electronically, the notice period starts immediately. If you mail it, wait 3–5 days to account for delivery times.

Understanding Illegal Rent Increase and Retaliation

Steer clear of all forms of retaliation to avoid penalties. Arkansas rent increase laws prohibit landlords from retaliating or discriminating against tenants. Here’s what you need to know:

Retaliation: You can’t raise rent to get back at tenants when they take the following legally-protected actions:

• Filing a complaint or charge against you, and
• Testifying, assisting, or participating in an investigation, proceeding, or hearing (Ark. Code § 16-123-208).

Discrimination: Arkansas law prohibits landlords from discharging, threatening, coercing, intimidating, or taking any adverse action against property managers or employees who refuse to engage in discriminatory practices (Ark. Code § 16-123-208).

In addition to the state’s protections, landlords must follow the Fair Housing Act (FHA). The federal law prohibits inconsistent rent increases that discriminate against the following protected traits:

• Race,
• Color,
• National origin,
• Religion,
• Sex,
• Familial status, and
• Disability (Fair Housing Act).

As a rule of thumb, keep your rent increase process uniform across the board.

Breach of contract: Remember, you can’t raise a tenant’s rent in the middle of a fixed-term tenancy without a clause for it. If you do, you’re breaking the lease and may incur penalties.

How to Write an Arkansas-Compliant Rent Increase Letter

Now that you understand Arkansas rent increase laws, let’s review the process of writing a rent increase letter. Always include the following details to keep your notice compliant:

• Property address and unit number,
• Tenant names,
• New total rent amount,
• Exact dollar amount of the increase,
• Effective date, and
• Instructions for tenants to accept or opt out.

We recommend using our Arkansas rent increase letter template to maintain consistency, professionalism, and transparency. It’s fast, easy, and free.

Managing the Rent Increase Process with Tenants

When you tell tenants their monthly rate is about to go up, they don’t have to accept it. Here’s what to do when tenants respond to your rent increase notice:

• Negotiate: If you have a great tenant who says they can’t afford your new price, consider being flexible to keep them. For example, you could reduce your rate or offer a longer lease term.
• Accept: After a tenant agrees to pay the new price, prepare the updated lease explaining your rent collection policy. State law doesn’t require you to offer a grace period after the increase takes effect.
• Decline: When tenants tell you they don’t want to pay the increase, they initiate the move-out process. Discuss your move-out procedure with the tenant to avoid surprises. As a best practice, begin the listing process as soon as possible.

Remember, raising rent is a normal part of being a landlord. Make the process smooth, stress-free, and easy by keeping these Arkansas rent increase laws top of mind.