Property owners operating in the state of Tennessee do not have limits on the application fee, security deposit amount, or pet fee that they can collect, provided that the pet is not a service animal. The state of Tennessee also clearly outlines how a property owner must hold the security deposit, And what they must inform the resident of. To learn more about security deposit regulations in the state of Tennessee, continue reading below.
Is there a limit on how much the property manager/owner can charge for an application fee? If so, what is that amount?
There is no limit on the application fee amount in the state of Tennessee. Application fees are non-refundable.
What is the security deposit amount the landlord can collect?
According to legislation in the state of Tennessee, property owners can request a security deposit of any amount to protect their property in the event of damages or unpaid rent. Certain counties may be subject to separate regulations, and property owners in the state of Tennessee must check with their local county or city ordinance in order to confirm that there are no limitations that their property is subject to.
Can the property manager/owner collect a fee for pets?
Yes. Property owners in Tennessee can collect a pet deposit separate from the apartment security deposit. There is no limit regarding how much Tennessee property owners can collect for a pet fee. Service pets are an exemption, and disabled persons with service pets do not have to pay an additional security deposit. However, if a service dog causes damages, the resident is still liable for expenses incurred.
How does the security deposit need to be held?
According to security deposit regulation and state of Tennessee, property owners cannot comingle accounts, and must deposit the security deposit in a separate account in which they will only keep security deposits. The account must be a financially recognized institution in the state of Tennessee.
Is the property manager/owner required to tell the resident where the deposit is held?
Yes. Property owners are required to tell residents where their security deposit is held upon signing the lease agreement.
Is the property manager/owner required to tell the resident what the interest rate on the account is (if applicable)?
No. Property owners in the state of Tennessee are not required to tell residents what the interest rate on their account is.
What can the property manager/owner deduct from the security deposit?
Property owners in the state of Tennessee may use the security deposit, or a portion of it, to cover unpaid rent, damages exceeding normal wear and tear, and damages that were not found during the initial inspection.
How long does the property manager/owner have to return the security deposit after the lease has ended?
Property owners in the state of Tennessee must return the security deposit, or its remainder, if applicable within 30 to 60 days of the resident vacating the property.
What is the process for the property manager/owner to claim the security deposit funds?
Property owners in the state of Tennessee that want to claim a portion of the security deposit in order to cover damages to their rental unit must conduct an inspection at the end of the lease agreement. The inspection should be made once the resident informs the property owner that they wish to vacate the property, or within five days of the lease termination. The property owner must inform the vacating resident, in writing, that they have a right to be present during the inspection. If a property owner chooses to inspect the property after the resident has left, the inspection must take place within four days of the resident moving out of the unit. After conducting the inspection, property owners must provide vacating residents with an itemized list of identifiable damages to the property. The vacating renter and the property owner must both sign the list. In the event that a resident does not agree with charges, they must indicate which parts they do not agree to in writing on the list. A resident loses their right to dispute charges from the security deposit if they requested to be present for the inspection but failed to show up. Residents that abandoned the property or vacated without prior notice do not have the right to be present for the exit inspection. if a vacating renter does not respond to the property owners claim within 60 days, the property owner may keep the portion of the security deposit. The itemized list of deductions and security deposit remains or, if applicable, must be sent to the residents forwarding address. If the property owner was not provided with this information and cannot find it within reasonable efforts, the landlord is not required to take further action.
Is the resident allowed to apply their security deposit towards the last month’s rent?
No. Residents are not allowed to apply their security deposit toward their last months rent, unless the property owner and resident agree to it in writing.
To summarize, property owners in the state of Tennessee have clearly outlined regulations regarding how could they can claim the security deposit, or a portion of it, if applicable. It is important for property owners in the state of Tennessee to inform the vacating residents of their right to attend the inspection. Property owners and residents should sign the inspection list in order to ensure it that the property owner can claim a portion of the security deposit.
Disclaimer & Sources:
Qira aims to keep this information as up-to-date as possible. The content provided here is for informational purposes and should not replace legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.
