General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- Charges against the deposit are based on a written list of damage and estimated repair costs, made at a move out inspection the tenant may attend or sent on the tenant's written request.
- A landlord who does not keep the deposit in the required account and provide the damage list loses the right to keep any part of it.
- Tennessee law generally does not set a limit on the size of a security deposit.
- The Act sets no fixed number of days to refund a deposit; the landlord sends notice of any refund due to the tenant's last known address, and if the tenant does not respond within 60 days the landlord may keep it.
- State law generally does not require interest on security deposits.
Tennessee generally does not cap security deposits, but covered landlords must keep deposits in a separate account at a regulated bank and tell the tenant where it is held. A landlord who skips the account or the damage list cannot keep any of the deposit.
Tennessee security deposits at a glance
| Rule | Tennessee | Law |
|---|---|---|
| Deposit limit | Tennessee law generally does not set a limit on the size of a security deposit. | Uniform Residential Landlord and Tenant Act |
| Deadline to return the deposit | The Act sets no fixed number of days to refund a deposit; the landlord sends notice of any refund due to the tenant's last known address, and if the tenant does not respond within 60 days the landlord may keep it. | Uniform Residential Landlord and Tenant Act |
| Itemized deductions | Charges against the deposit are based on a written list of damage and estimated repair costs, made at a move out inspection the tenant may attend or sent on the tenant's written request. | Tenn. Code Ann. 66-28-301 |
| Interest on deposits | State law generally does not require interest on security deposits. | Uniform Residential Landlord and Tenant Act |
| Penalty for wrongful withholding | A landlord who does not keep the deposit in the required account and provide the damage list loses the right to keep any part of it. | Tenn. Code Ann. 66-28-301(c) |
How much you can collect
Deposit limit. Tennessee law generally does not set a limit on the size of a security deposit. (Uniform Residential Landlord and Tenant Act)
Holding the deposit
Where the deposit is held. Landlords who take deposits before move in must keep them in an account used only for deposits at a bank or lending institution regulated by the state or federal government. (Tenn. Code Ann. 66-28-301(a))
Interest on deposits. State law generally does not require interest on security deposits. (Uniform Residential Landlord and Tenant Act)
Receipts and notices. At signing, the landlord discloses the location of the deposit account but does not have to give the account number. (Tenn. Code Ann. 66-28-301)
Deductions and normal wear and tear
A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.
Itemized deductions. Charges against the deposit are based on a written list of damage and estimated repair costs, made at a move out inspection the tenant may attend or sent on the tenant's written request. (Tenn. Code Ann. 66-28-301)
Returning the deposit
Deadline to return the deposit. The Act sets no fixed number of days to refund a deposit; the landlord sends notice of any refund due to the tenant's last known address, and if the tenant does not respond within 60 days the landlord may keep it. (Uniform Residential Landlord and Tenant Act)
Penalties for wrongful withholding
Penalty for wrongful withholding. A landlord who does not keep the deposit in the required account and provide the damage list loses the right to keep any part of it. (Tenn. Code Ann. 66-28-301(c))
Mistakes to avoid
- Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
- Charging for normal wear and tear.
- Missing the return deadline, even by a few days.
- Not asking for a forwarding address before the tenant leaves.
- Losing track of deposit money by mixing it with operating funds without a ledger.
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General information, not legal advice.
Verify current law
We last checked these Tennessee rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Tennessee attorney about your situation.
Laws named on this page
- Uniform Residential Landlord and Tenant Act
- Tenn. Code Ann. 66-28-301
- Tenn. Code Ann. 66-28-301(c)
- Tenn. Code Ann. 66-28-301(a)
Official sources
Tennessee forms for this topic
Letters and checklists for this topic
The parts people misread.
Is there a limit on security deposits in Tennessee?
Tennessee law generally does not set a limit on the size of a security deposit. Source: Uniform Residential Landlord and Tenant Act.
How long does a Tennessee landlord have to return a deposit?
The Act sets no fixed number of days to refund a deposit; the landlord sends notice of any refund due to the tenant's last known address, and if the tenant does not respond within 60 days the landlord may keep it. Source: Uniform Residential Landlord and Tenant Act.
Do Tennessee landlords have to pay interest on deposits?
State law generally does not require interest on security deposits. Source: Uniform Residential Landlord and Tenant Act.
What happens if a Tennessee landlord keeps a deposit wrongly?
A landlord who does not keep the deposit in the required account and provide the damage list loses the right to keep any part of it. Source: Tenn. Code Ann. 66-28-301(c).