Tennessee

Security Deposit Amount

Tennessee law does not impose a specific limit on the amount of security deposit a landlord can charge. It is generally negotiable between the landlord and tenant, though it must be reasonable.

Options for Holding

All landlords of residential property requiring security deposits prior to occupancy are required to deposit all tenants’ security deposits in an account used only for that purpose, in any bank or other lending institution subject to regulation by the state or any agency of the United States government.

Notification Requirements

Tennessee law does not require landlords to inform tenants of the bank or account where the security deposit is held.

Payment of Interest Earned

Tennessee law does not require landlords to pay interest on security deposits.

Timeline for Returning

Landlords must return the security deposit, minus any lawful deductions, within 30 days after the tenant vacates the property and returns possession to the landlord. This period includes providing an itemized statement of deductions.

Claims Process

Inspection shall be either on the day the tenant completely vacates the premises or within four (4) calendar days of the tenant vacating the premises.

Landlords must provide tenants with a written, itemized list of deductions from the security deposit. The itemization must detail each deduction and the amount charged.

Tenants are required to provide a forwarding address to the landlord in writing before moving out. This address is necessary for the return of the security deposit and for sending any notices related to deductions.

Tennessee landlords may deduct from a security deposit for these reasons:

• Unpaid Rent: Deductions can be made for any unpaid rent.
• Damage to Property: Landlords may deduct amounts for damages beyond normal wear and tear. This includes repairs to the property, fixtures, and appliances.
• Cleaning Costs: Reasonable cleaning costs may be deducted if the property is not returned in a clean condition.
• Other Costs: Additional charges related to tenant obligations under the lease, such as costs for repairs due to tenant negligence, may also be deducted.

If a landlord fails to return the security deposit or provide an itemized statement within the 30-day period, the tenant may file a lawsuit to recover the deposit and any additional damages.

In cases where the landlord has acted in bad faith or failed to comply with the law, the tenant may be entitled to recover the full amount of the security deposit, plus potential damages and attorney’s fees.

Transfer of Ownership: When a property changes ownership, the new owner assumes responsibility for the security deposit. The landlord must transfer the deposit and notify the tenant of the new owner's contact information.

Eviction: In eviction cases, the landlord must still adhere to the legal requirements for returning the security deposit and providing an itemized list of deductions.