Arkansas Senate approves SB91 limiting rent control for landlords and property managers

On April 1, 2025, the Arkansas State Legislature introduced Senate Bill 91, a significant piece of legislation aimed at regulating rental practices across the state. The bill seeks to address concerns regarding rental application fees, security deposits, and rent control, establishing a framework that impacts landlords, property owners, property managers, tenants, prospective tenants, and real estate companies operating in Arkansas.

One of the key provisions of Senate Bill 91 is the preemption against local regulations concerning rent, rental application fees, and rental deposit controls. This means that the state will standardize these practices, limiting the ability of local governments to impose their own rules in these areas. However, the bill does allow local governmental units to manage and control residential properties in which they have a vested interest, maintaining some level of local authority.

The introduction of this bill has sparked notable debates among lawmakers and stakeholders. Proponents argue that standardizing rental practices will create a more equitable housing market and protect tenants from excessive fees and arbitrary rent increases. They believe that this legislation will enhance transparency and fairness in rental agreements. Conversely, opponents express concerns that the bill may undermine local governments' ability to respond to specific housing needs and conditions within their communities. Critics argue that local control is essential for addressing unique housing challenges that vary from one area to another.

The economic implications of Senate Bill 91 are significant. By regulating rental practices, the bill could potentially stabilize rental markets and make housing more affordable for residents. However, there are fears that limiting local control may lead to unintended consequences, such as reduced investment in rental properties or a decrease in the quality of housing available.

As the bill progresses through the legislative process, experts suggest that its outcomes will depend heavily on the balance struck between state regulation and local autonomy. The ongoing discussions surrounding Senate Bill 91 highlight the complexities of housing policy and the need for careful consideration of both tenant protections and local governance.

In conclusion, Senate Bill 91 represents a pivotal moment in Arkansas's approach to rental regulation. As it moves forward, stakeholders will be closely monitoring its implications for both tenants and landlords, as well as the broader housing landscape in the state.