Elements of a Residential Lease Agreement
A residential lease agreement in Arkansas is much more than just a promise to pay rent; it should be the patchwork of rights, responsibilities, and expectations that define the relationship between the landlord and tenants. Some fundamental elements of a residential lease agreement include:
Renter Rights
Many of the basic rights and responsibilities of renters are established in the Arkansas Residential Landlord-Tenant Act. A good lease should reaffirm many of these rights, as well as provide guidance on specific details such as when rent is due, how it may be paid, and what utilities will be supplied by the landlord. It should also spell out whether the property is furnished, which utilities are provided, and whether pets are allowed.
Lease Duration
On the lease, it should be clearly stated whether the tenancy is for a fixed term (6 or 12 months) or whether the lease is open-ended. With a long-term lease , the tenants have an obligation to stay at the premises for the entire period. However, they may not necessarily have to pay rent for the duration. The lease will usually discuss the notice that the tenants need to provide before they vacate and the kind of penalties that may apply for breaking the lease early (if any).
Termination
A good lease also discusses termination. In addition to the aforementioned details about notice and rent, the lease should also address the process for what happens after the termination of the tenancy. For example, after the end of the lease term, the property must be returned in the same condition as it was prior to rental. The lease should lay out the process for the inspection and return of the security deposit. If the security deposit is not sufficient to cover any damages or unpaid rent, the tenant may be on the hook for the rest. Finally, if the lease is for a term longer than one year, the lease may not be voided via a verbal agreement.
State-Specific Legal Considerations
Arkansas law has specific requirements that are important for both landlords and tenants to know when entering into a lease agreement. In addition to standard provisions, Arkansas law requires the following:
Applications. Pursuant to Arkansas Code Annotated § 18-16-502, a prospective landlord can ask for a rental application fee to be paid by each applicant. The amount of the fee is not specified by statute, but it cannot exceed 25% of one month’s rent. If the tenant is approved for the apartment, the application fee must be applied to the first month’s rent. If not approved, the fee is generally nonrefundable.
New lease provisions. Under Arkansas law, Arkansas Code Annotated § 18-16-111, a lease must contain the following provisions:
1. A description of the dwelling unit rented; 2. The names of all adult tenants; 3. A disclosure of any lead-based paint if the unit was built prior to 1978; 4. A list of persons that may or may not be residents of the unit; and 5. A copy of the Arkansas Residential Landlord-Tenant Act.
Landlord obligations. Under the Arkansas Residential Landlord-Tenant Act, an Arkansas residential landlord has the following obligations:
1. Make necessary repairs or supply vital services as required by the lease or by state or local law; 2. Maintain common areas in [a] clean and-safe condition; 3. Maintain all electrical, plumbing, sanitary, heating, venting, and air-conditioning facilities and appliances in good working order; and 4. Make all lawful, reasonable, and necessary efforts to protect the health, safety and welfare of all persons in or about the premises.
Tenant obligations. The Arkansas Residential Landlord-Tenant Act also requires Arkansas residential tenants to do the following:
1. Keep his own unit in a clean and safe condition; 2. Dispose of all garbage in a clean and safe manner; 3. Keep all plumbing fixtures in a unit usable, and may not allow anyone else to use them improperly; 4. Avoid destroying, removing, or defiantly damaging or suggesting in any way, any portion of the premises or the property of another tenant or neighbor; and 5. Notify the landlord if he knows of any required repairs.
Entry by the landlord. The law sets forth when and how a landlord can enter into a unit. Arkansas Code Annotated § 18-15-907 states:
(b)(1) A landlord or his agent may enter a dwelling without consent of the tenant in case of emergency, or in order for the landlord or his agent to inspect the premises, make necessary or agreed repairs, care for the premises, or supply agreed services. In no case may the landlord enter except between 8:00 a.m. and 8:00 p.m. except upon prior demand of the tenant who may specify any other hour which is convenient to the tenant.
Key Provisions in Arkansas Lease Agreements
The majority of Arkansas residential lease agreements contain the same types of clauses and provisions. The following is a breakdown of some of the most common provisions found in residential lease agreements in Arkansas. Dwelling Units – Arkansas lease agreements typically identify the type of dwelling unit being leased and include for apartments the name of the complex. Some apartments require all adult tenants to be on the lease, and others do not. A landlord should include all tenants and any signers of the lease agreement on the lease agreement. If they are in the property and not on the lease agreement, the landlord is opening itself up to liability and increasing the potential for loss. Terms of Occupancy – Arkansas residential lease agreements either contain a term of occupancy or are lease agreements for an unspecified term or a month-to-month agreement. A lease with a specified duration will usually contain the exact dates that the lease begins and ends. Month-to-month leases specify that the lease will renew every month until terminated by either the landlord or the tenant. In the absence of any communication to the contrary, most Arkansas leases are month-to-month. Rent – Arkansas lease agreements will typically specify what day of the month the rent payment is due. Most Arkansas residential lease agreements require the tenant to mail or hand deliver a check to the landlord. A growing number of landlords are utilizing electronic transfer payments for rent. If the tenant is permitted to mail a payment to the landlord, the provisions of the lease should clearly set forth when the payment is due. Some lease agreements require the tenant to place the rent in the U.S. mail with a postmark dated no later than the 5th of the month (or 7th if a Saturday or Sunday). Other lease agreements require the rent to be physically in the landlord’s possession by no later than noon on the fifth day of the month (or by 5:00 on the fifth day of the month if received electronically). Security Deposits – An Arkansas residential lease agreement will typically contain a section regarding security deposits. Arkansas Code Annotated § 18-16-601 establishes the rules for Arkansas landlords regarding security deposits. The Act requires the landlord to return all security deposits within 60 days after the termination of the lease, less any amounts deducted for damages to the premises. The Act also requires the landlord to mail or hand deliver an accounting statement of any deductions within 60 days of returning the security deposit. If the landlord fails to timely return security deposits and provide an accounting statement, the landlord is liable to the tenant for twice the amount of the security deposit, reasonable attorney’s fees, and court costs if the tenant brings a lawsuit. As a practical matter, the tenant must prove that the lease was terminated, the security deposit has not been returned, and an accounting statement was not provided within the 60 day time frame. Maintenance – Most lease agreements in Arkansas contain a maintenance clause that sets out who is responsible for maintaining the interior and exterior of the premises. Typical maintenance requirements include a requirement that the tenant keep the premises clean and free of debris and that the tenant promptly notify the landlord of any conditions requiring repair. The Act requires the landlord to make all repairs necessary to keep the premises fit for human habitation within a reasonable time after receiving notice from the tenant. As a practical matter, the parties’ maintenance and repair obligations should be specifically addressed when drafting a residential lease agreement. A failure to do so could create disputes when significant issues arise.
Tenant and Landlord Obligations
The resident in a residential lease agreement has only a handful of duties that are specifically required by state statute. However, a good portion of the resident’s obligations are terms of the lease agreement. They are:
A. DUTY TO MAINTAIN UNIT. A resident shall:
- (1) keep that part of the premises that the resident occupies and uses reasonably clean and sanitary;
- (2) remove from the unit all garbage and other waste in a clean and safe manner;
- (3) keep all plumbing fixtures in the unit or within the exclusive use of the unit in a clean and sanitary condition;
- (4) use all electrical, plumbing, sanitary, and heating fixtures properly;
- (5) refrain from destroying, damaging, or removing any part of the premises or deliberately or negligently causing damage.
B. DUTY TO NOTIFY LANDLORD OF UNSAFE/UNHEALTHY CONDITIONS. A resident shall notify the landlord of:
(1) a material failure to comply with the previous subsection within a reasonable time, which cannot be remedied by the tenant.
The resident may opt to comply with the complaint process in order to allow an inspector from city hall to come inside the unit and inspect it for any issues. The resident must be reasonable and give the landlord time to fix the issues if they exist and are necessary.
The requirements of the landlord are much broader compared to those of the resident. A.R.S. §18-16-701 and 18-16-703 require the following:
(a) make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition.
(b) maintain common areas of the premises in a fit and habitable condition;
(c) maintain in good and safe working condition and promptly repair all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, except when:
(1) repair is necessitated by the negligent or intentional conduct of the person failing to maintain the facilities or appliances.
Remedies for Lease Violations in Arkansas
In Arkansas, handling lease violations is primarily governed by the terms and provisions set forth in the residential lease agreement itself. Typically, most Arkansas residential leases include language which addresses consequences of lease violations, with the specific language regarding lease violations ultimately being subject to the customized terms of the lease agreement. If the lease agreement does not address lease violations in detail , then the parties will be subject to the provision in the Arkansas Residential Landlord and Tenant Act addressing lease violations.
If the lease is terminated as a result of a violation, then the tenant must vacate the premises and remove all of their personal property in accordance with instructions provided in a termination notice that may be delivered to you no less than fourteen (14) days before the termination date. Also, if the landlord can establish that the tenant has violated the lease, then the landlord may be able to recover attorney fees and court costs even when the amount of unpaid rent due is small.
Strategies for Lease Agreement Negotiation
Best Practices when Negotiating a Residential Lease Agreement
Tenants should take the opportunity during any lease negotiations to ensure the lease agreement is fair and equitable. Ultimately, if the landlords are not satisfied with the terms of the agreement, they will not sign it. However, landlords can be flexible (or uncompromising) about certain lease terms that are commonly negotiable.
Think about how the landlord would prefer to receive rent. A number of landlords prefer rent to be deducted directly from the tenant’s bank account every month (especially if the rent is to be automatically deposited in the landlord’s account). To accommodate the landlord’s preferences, the tenant can provide a voided check to the landlord for rent to be automatically debited from the tenant’s account.
Alternatively, if the landlord is okay with the tenant making electronic payments to the landlord through third-party apps like Venmo or PayPal, then a provision should be added to the lease agreement authorizing such payments.
Landlords should also consider whether it is worth including an inspection checklist with the parties signing the checklist to verify each of the items on the list when the property is occupied by the tenant. The lease agreement can also include a provision that the tenant has 48 hours to report any issues with the apartment to the landlord, which would help ensure that issues to be addressed (if there are any) are brought to the landlord’s attention as soon as possible. The parties should also include a provision for how tenants can secure their own locks, if they would like to change the existing locks, and a provision for how the cost of changing the locks will be paid (landlord or tenant).
The "big ticket" items a tenant should consider negotiating are multiple-year leases, the ability to sublet the property and whether pets are allowed. Typically, a landlord does not want to commit to a long-term arrangement with a tenant and would rather have flexibility to move on if the relationship turns out to be toxic or the tenant does not pay rent on time. However, if the tenant believes they want to stay with the same landlord for a long time, the tenant should see if they can negotiate a long-term lease.
Likewise, whether or not the tenant gets to keep his or her pet at the apartment should also be negotiated. Most tenants with dogs or cats are not happy if they have to give their pet up. Subletting, i.e., renting out the property to another tenant for part of the leased term while the initial tenant is away is rarely allowed, but will be contested by most landlords.
Tenant and Landlord Support Services
In addition to the resources provided by government officials, Arkansas has organizations that aim to promote fair and affordable housing. These include:
Legal Aid of Arkansas – This nonprofit agency assists low-income Arkansans with civil legal problems including evictions and loss of security deposits.
Arkansas Fair Housing Commission – This state agency is tasked with enforcing the Fair Housing Act and antidiscrimination provisions of the Arkansas Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of housing.
Arkansas Single Parent Scholarship Fund – The Arkansas Single Parent Scholarship Fund provides scholarships to low-income single parents pursuing a college degree.
Legal Services Corporation – The Legal Services Corporation is a federally funded nonprofit organization with local offices nationwide that provide free or reduced-cost legal services to low-income individuals.
Nolo.com – Nolo.com’s Arkansas landlord-tenant center is an information hub for Arkansas tenants and landlords alike , covering a range of topics from eviction notices to security deposit disputes.
HUD – The U.S. Department of Housing and Urban Development operates the fair housing hotline, which allows individuals to file complaints regarding housing discrimination. HUD also operates a rental rental assistance program.
HUD approved statewide housing counseling agencies – HUD maintains a directory of HUD approved housing counseling services across the state. Housing counseling agencies provide consumers with affordable housing opportunities, access to mortgage credit, rental assistance, financial literacy, credit counseling, foreclosure avoidance and reverse mortgage default counseling.