Overview
Tennessee's security deposit laws are governed by the Uniform Residential Landlord and Tenant Act (Tenn. Code § 66-28-101 et seq.). Unlike many states, Tennessee does not impose a statutory cap on the amount a landlord may charge as a security deposit. However, the law establishes clear rules for how deposits must be held, when they must be returned, and what deductions are permissible.
This guide covers everything landlords and tenants need to know about security deposits in Tennessee.
Deposit Limits
Tennessee has no statutory limit on security deposit amounts. Landlords may charge any amount they deem appropriate. In practice, most landlords charge between one and two months' rent.
While there is no cap, courts may consider an unreasonably high deposit as evidence of bad faith or unconscionability in a dispute. Tenants should review the deposit amount carefully before signing a lease.
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed through the end of the tenancy
- Damage beyond normal wear and tear: Repairs for tenant-caused damage that exceeds ordinary use
- Cleaning costs: Expenses to restore the unit to the condition it was in at move-in
- Late charges and other fees: Any unpaid charges permitted under the lease agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs or marks on walls
- Small nail holes from hanging pictures
- Carpet wear from regular foot traffic
- Fading of paint or wallpaper due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls or doors
- Burns or stains on carpet or flooring
- Broken windows, fixtures, or appliances caused by the tenant
- Excessive dirt or filth requiring professional cleaning
Return Timeline
Tennessee has a two-tier return timeline:
- 30 days: If the landlord does not intend to make any deductions, the full deposit must be returned within 30 days of the tenant vacating the unit
- 60 days: If the landlord intends to make deductions, the remaining balance along with an itemized list of damages must be returned within 60 days
The landlord must send the deposit and any itemized statement to the tenant's last known address or forwarding address. If the tenant does not provide a forwarding address, the landlord's obligation to return the deposit is paused until one is received.
If the landlord fails to comply with the return timeline, the tenant may be entitled to recover the full deposit amount plus reasonable attorney's fees.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can take the following steps:
- Send a written demand letter to the landlord requesting return of the deposit and providing a forwarding address
- File a claim in General Sessions Court (small claims division) for the amount withheld, typically up to $25,000
- Seek attorney's fees: Tennessee law allows the prevailing party in a deposit dispute to recover reasonable attorney's fees
Landlords who willfully fail to return the deposit or provide the required itemized statement may face additional penalties. Tenants should document the condition of the rental unit at move-in and move-out with photographs and written records.