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.

Disclaimer

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-80x80

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.

Other news

lease-provisions

Centralization in Multifamily Property Management

As each day becomes more tech-enabled, property management firms naturally evolve to seek efficiencies and capitalize on economies of scale. The movement towards centralizing leasing, operations, and maintenance functions is strategic. 

Author: Kasee Godwin
Date: 05.15.2024
lease-provisions

Exploring the Nuances of Ancillary Income

Ancillary income, a fundamental principle in the multifamily sector, encompasses the various revenue streams that property owners and managers can tap into beyond the primary rent collection.

Author: Kasee Godwin
Date: 04.10.2024
lease-provisions

Security Deposit Alternatives: A Win-Win for Property Managers

The advent of security deposit alternatives is reshaping this landscape, offering a win-win solution for property managers and renters.

Author: Kasee Godwin
Date: 02.22.2024
lease-provisions

The Rental Economy: Understanding the Shift in 2024

Evolving financial trends are defining this shift, challenging traditional investment strategies and demanding a more nuanced approach from industry professionals. The rise of Generation Z renters and a general change in renter demographics are reshaping rental market dynamics. 

Author: Kasee Godwin
Date: 01.25.2024
lease-provisions

The Rise of Gen Z Renters

As Generation Z (born between 1997 and 2012 and aged 12-27) increasingly enters the rental market, their preferences and behaviors are beginning to reshape the multifamily industry.

Author: Kasee Godwin
Date: 01.18.2024
lease-provisions

Artificial Intelligence and Machine Learning in Multifamily Real Estate 

Integrating Artificial Intelligence (AI) and Machine Learning (ML) in the multifamily real estate sector is transforming the industry's landscape. These advanced technologies are reshaping the dynamics for property managers, investors, and renters. 

Author: Kasee Godwin
Date: 01.16.2024
lease-provisions

The Future of Multifamily Housing: Trends to Watch in 2024

As we move into 2024, the multifamily housing sector continues to evolve, shaped by emerging trends that reflect broader social, economic, and technological shifts. 

Author: Kasee Godwin
Date: 01.09.2024
Wyoming Security Deposit Law

Wyoming Security Deposit Law

The state of Wyoming does not limit application fees or security deposit amounts that property owners can collect, and even enables property owners in the state to collect an additional security deposit for utility fees.

Author: Kasee Godwin
Date: 12.15.2023

We are a financial services platform for property management

We are a financial services platform for property managers and residents. We help property managers and owners improve cash flow, reduce vacancies and avoid bad debt.

1-3