Tennessee Security Deposit Law

Tennessee Security Deposit Law

Author: Kasee Godwin
Date: 01.03.2023

Tennessee Security Deposit Law 

Tennessee security deposit law is crucial for landlords and tenants to understand, as it outlines the rights, responsibilities, and limitations regarding security deposits in rental agreements.

Maximum Security Deposit Amount

Unlike many states, Tennessee does not impose a statutory limit on the amount a landlord can charge for a security deposit.

Refund Timeframe

Landlords must return the security deposit within 30 days of the tenant vacating the property. This timeframe ensures tenants receive their deposits promptly, minimizing any financial inconvenience.

Disclosure Requirements

In Tennessee, landlords must place deposits in separate accounts but do not have to inform tenants of the location of that account.

Interest on Deposits

Unlike some states, Tennessee landlords are not obligated to pay interest on security deposits.

Move-In and Move-Out Documentation

Tennessee law mandates landlords to conduct a walk-through inspection with the tenant to document property conditions at both move-in and move-out. This practice is crucial for accurately assessing any damages that might warrant deductions from the security deposit.

Essential Tenant Rights and Landlord Obligations

Tenant Rights:

  • Tenants have the right to be present during the walk-through inspections.
  • They should receive an itemized list of any deductions made from their security deposit.
  • Tenants are entitled to receive their security deposit within the specified 30-day period post-vacation of the property.

Landlord Obligations:

  • Landlords must store security deposits in a separate account in a financial institution subject to federal or state regulations.
  • They must provide written notice to tenants about the security deposit’s storage.
  • Landlords must return the security deposit or provide an itemized list of deductions within 30 days of tenant move-out.

Common Issues and Resolutions

  • Improper Deductions: Landlords cannot deduct for everyday wear and tear. Any deductions must be for actual damages or unpaid rent.
  • Disputes: In case of disagreements over deductions, both parties should first attempt resolution through communication. If unresolved, legal action may be considered.
  • Documentation: Landlords and tenants should keep thorough documentation of the property’s condition at move-in and move-out to prevent disputes over security deposit deductions.

Understanding and adhering to Tennessee’s security deposit laws is essential for a smooth landlord-tenant relationship. Both parties should know their rights and responsibilities to avoid misunderstandings and potential legal issues.


Qira aims to keep this information as up-to-date as possible. The content provided here is informational and should be different from legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.


Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

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