Arkansas Commercial Lease Agreement

An Arkansas commercial lease agreement is handy for many landlords and business owners looking for suitable locations. It spells out the rights and obligations of each party, along with non-compliance remedies. This sets the framework for a trouble-free tenancy anchored in law.

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Arkansas Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

  • Under Arkansas law, every contract contains an implied covenant of good faith and fair dealing, requiring each party to act in good faith and deal fairly. 
  • This applies even to commercial leases, as the landlord and tenant are expected to perform obligations in good faith, including the landlord’s duty to maintain the premises and the tenant’s duty to pay rent on time. 
  • Neither party should deprive the other of lease benefits. 
  • The tenant mustn’t disturb other tenants or interfere with the landlord’s management. 
  • The landlord shouldn’t interfere with the tenant’s permitted use. 

Statutory Notice Periods

  • Under Arkansas law, if the tenant remains in possession of the leased premises after the expiration of the lease term without the landlord’s consent, the landlord must provide a written notice to vacate before filing for eviction. 
  • The notice to vacate must state the date the tenant must leave the premises. After the three (3) day notice period, if the tenant remains in possession of the premises, the landlord may file an unlawful detainer lawsuit to evict the tenant.
  • In any commercial lease dispute where the landlord sues for possession and the tenant raises defenses, the tenant must continue paying rent as it becomes due and provide written receipts for payments. 
  • The tenant must also pay any alleged past-due rent or provide receipts showing it was paid.
  • If the rent amount is disputed, the court will determine the amount to be paid during litigation.

Security Deposits

  • Arkansas doesn’t restrict the amount a landlord can require as a security deposit for a commercial lease.  
  • No Arkansas regulations or requirements govern the return of commercial security deposits. 
  • Arkansas doesn’t prohibit merging commercial security deposits with other funds or require landlords to hold deposits in interest-bearing accounts. 
  • Commercial landlords in Arkansas aren’t required to pay any interest earned on tenant security deposits.


  • Permission for modification: The landlord must disclose whether the tenant can modify the premises for renovations or signage installations. 
  • Storage of hazardous material: The landlord must also include a section stating whether storing hazardous or illegal materials on the premises is prohibited. 
  • Lead-based paint disclosure: For properties constructed before 1978, the landlord must provide a lead paint disclosure about the historical usage of lead paint. 

Termination and Renewal

  • Arkansas has no statutory maximum or minimum duration for commercial leases. Typically, leases on business properties last between one (1) to three (3) years.
  • A tenant wishing to terminate their lease early would need consent from the landlord, which usually involves paying an early termination fee, such as two (2) to three (3) months’ rent.
  • At the end of the lease, the tenant must leave the property clean and in the same condition as at the beginning, minus normal wear and tear. 
  • Under Arkansas law, if the landlord doesn’t intend to renew the lease at the end of the current lease term, they must provide proper notice of non-renewal to the tenant. Typically, 30 days before the lease’s expiration date.