Arkansas bill preempts local control over rental fees and deposits

In a significant move aimed at regulating the rental market, the Arkansas State Legislature introduced Senate Bill 91 on April 1, 2025. This bill seeks to preempt local governments from enacting any ordinances that would control the amount of rent, rental application fees, or rental deposits for private residential and commercial properties.

The primary purpose of SB91 is to establish a uniform standard across the state, preventing local entities from imposing their own regulations on rental pricing. This measure is particularly relevant in the context of rising housing costs and increasing demand for rental properties in Arkansas. By limiting local control, the bill aims to create a more predictable environment for landlords and property managers, potentially encouraging investment in the rental market.

Key provisions of the bill include a clear definition of what constitutes a "local governmental unit" and the stipulation that these entities cannot enact laws that would interfere with rental pricing. Notably, the bill does allow local governments to manage properties in which they have a direct interest, maintaining some level of local oversight.

However, SB91 has sparked considerable debate among lawmakers and community advocates. Proponents argue that the bill will foster economic growth by attracting more landlords and investors to the state, thereby increasing the availability of rental properties. They contend that a standardized approach will simplify the rental process and reduce confusion for both landlords and tenants.

Conversely, opponents of the bill express concerns that it undermines local governments' ability to address specific housing issues within their communities. Critics argue that local regulations are often necessary to protect vulnerable populations from excessive rent increases and to ensure affordable housing options. This tension highlights a broader national conversation about housing affordability and the role of government in regulating the rental market.

The implications of SB91 extend beyond immediate rental pricing. Economically, the bill could influence housing supply and demand dynamics in Arkansas, potentially leading to increased rents in areas where local governments previously had the authority to impose controls. Socially, the legislation may exacerbate challenges for low-income tenants who are already struggling with housing affordability.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders on both sides are closely monitoring developments, and further amendments may be proposed to address concerns raised during discussions. The outcome of SB91 could set a precedent for how rental markets are regulated in Arkansas and potentially influence similar legislative efforts in other states.