Security Deposit Laws in Tennessee
How long does a landlord have to return a security deposit in Tennessee?
Under Tenn. Code § 66-28-301 (URLTA), a landlord in Tennessee has 30 days after you move out to either return your full security deposit or provide an itemized statement of deductions along with any remaining balance.
Important Tennessee-specific details
Tennessee has NO fixed statutory deadline for return. Landlord must notify tenant at last known address of any refund due; if tenant doesn't respond within 60 days, landlord may retain the deposit. Deposit must be held in a separate account at a regulated bank/financial institution (tenant must be told the location). Landlord must offer tenant a move-out inspection (with 5 days' notice), conducted within 4 days of vacating. IMPORTANT: URLTA — and thus this section — applies only in Tennessee counties with 75,000+ population (per last federal census). Elsewhere, common law governs.
What happens if the landlord misses the deadline in Tennessee?
Missing the deadline has real consequences for landlords in Tennessee. Under the statute, the penalty is: If landlord fails to deposit in separate account OR fails to provide damage listing, landlord forfeits all rights to retain any portion of the deposit. Tenant may sue in general sessions or circuit court, limited to items specifically disputed.
In practice, this means if your landlord doesn't return the deposit (or a proper itemized statement) within 30 days, you likely have a strong case in small claims court.
What can the landlord legally deduct from your deposit in Tennessee?
Tennessee law generally allows landlords to deduct for:
- Unpaid rent
- Damage to the unit beyond normal wear and tear — holes in walls, broken fixtures, stains, pet damage
- Cleaning costs, if the unit is left noticeably dirtier than at move-in
- Breach-of-lease costs, such as early termination fees where legally permitted
Landlords cannot deduct for normal wear and tear — faded paint, worn carpet from regular use, minor scuffs, or small nail holes from hanging pictures.
Calculator: check your deposit situation
Enter your move-out date and deposit amount below to see exactly when your landlord's deadline is — and whether they've already missed it.
Security Deposit Return Calculator
Find out when your landlord must return your deposit and what they're legally allowed to deduct.
What to do if your landlord won't return your deposit in Tennessee
- Send a demand letter by certified mail. Cite Tenn. Code § 66-28-301 (URLTA) and the amount owed. Keep a copy and the delivery receipt.
- Give the landlord a reasonable response window — typically 7 to 14 days after the demand letter.
- File in small claims court. In most states you can sue for up to $5,000–$10,000 without a lawyer. Filing fees are usually $30–$75 and often recoverable as costs.
- Bring evidence. Lease, move-in and move-out photos, the demand letter, proof of delivery, and any communications with the landlord.
For a complete walkthrough, see our guide: What to Do If Your Landlord Won't Return Your Security Deposit.
Tennessee Security Deposit FAQ
- How long does a landlord have to return a security deposit in Tennessee?
- In Tennessee, landlords must return the security deposit within 30 days of the tenant moving out, per Tenn. Code § 66-28-301 (URLTA). They must either return the full deposit or provide an itemized statement of any deductions.
- What is the maximum security deposit a landlord can charge in Tennessee?
- Tennessee does not have a statutory cap on security deposits. Landlords can charge any amount, though market norms typically keep deposits to 1-2 months' rent.
- What happens if my landlord doesn't return my deposit on time in Tennessee?
- In Tennessee, the penalty for wrongfully withholding a security deposit is: If landlord fails to deposit in separate account OR fails to provide damage listing, landlord forfeits all rights to retain any portion of the deposit. Tenant may sue in general sessions or circuit court, limited to items specifically disputed. You can sue in small claims court to recover the deposit plus the statutory penalty.
- Does my landlord in Tennessee have to pay interest on my security deposit?
- No. Tennessee does not require landlords to pay interest on security deposits.
- Does my landlord have to itemize deductions from my deposit in Tennessee?
- Yes. Tennessee law requires landlords to provide an itemized statement of any deductions made from your security deposit.