Breaking a Lease in Tennessee

Tennessee Security Deposit Law — Limits & Deadlines (2026)

By Oleg Kachko · Updated June 10, 2026

✓ Law Verified June 2026

This guide explains tennessee security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from Tennessee law, verified as of June 2026.

In This Tennessee Guide:

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Tennessee Security Deposit Rules at a Glance

Maximum deposit No statutory limit. Tennessee law does not cap security deposit amounts. Landlords may charge any amount, though most charge 1 to 2 months of rent in practice. Note: this applies in counties covered by the Uniform Residential Landlord and Tenant Act (counties with populations over 75,000 per the 2010 U.S. Census, including Davidson, Hamilton, Knox, Shelby, and others). In smaller counties, the URLTA does not apply and tenants should check local rules.
Return deadline 30. The landlord must mail or deliver the remaining deposit plus an itemized list of any deductions within 30 days after the tenancy ends and the tenant has provided a forwarding address. If the tenant does not provide a forwarding address, the landlord must hold the deposit for the tenant to claim. If a mailed check goes unclaimed for 60 days, the landlord may retain the deposit.
Itemized deductions required YES. The landlord must provide a written, itemized list of all damages and the estimated or actual dollar cost of repairing each item. If the landlord fails to provide this itemized listing, the landlord forfeits the right to retain any portion of the deposit.
Interest on deposit required NO. Tennessee does not require landlords to pay interest on security deposits or to hold them in interest-bearing accounts. The deposit must be held in a separate account at a regulated financial institution, but no interest accrues to the tenant by statute.
Penalty for late/bad-faith return If the landlord fails to deposit the security deposit in a proper separate account, or fails to provide the required itemized damage listing, the landlord forfeits the right to retain any portion of the deposit. A tenant may file suit in General Sessions Court (small claims) or Circuit Court to recover the full deposit amount. Courts may also award court costs. Tennessee does not have a specific statutory double or triple damages penalty for late return, but a landlord who fails to comply with the statute’s procedures loses all right to withhold, effectively requiring return of the full deposit.

Move-in/move-out walkthrough: YES, Tennessee has a specific move-out inspection process. Upon notice that the tenant will vacate (or within 5 days after receiving tenant’s written notice to vacate), the landlord may notify the tenant of the right to be present at the inspection. The tenant may request the inspection be scheduled during normal business hours.

The inspection must occur on the day the tenant completely vacates or within 4 calendar days after vacating. If the tenant is present, both parties compile and sign a listing of all damages and estimated repair costs.

If the tenant disagrees with any item, they must note their dissent on the listing. If the tenant fails to appear for a scheduled inspection, the tenant waives the right to contest the landlord’s damage findings. There is no statutory move-in inspection requirement, but tenants are strongly advised to document the condition of the unit at move-in with photos and a written checklist.

Separate deposit account: YES. All landlords of residential property requiring security deposits must deposit the funds in an account used only for that purpose, at a bank or other lending institution regulated by the state of Tennessee or a federal agency.

The deposit cannot be commingled with the landlord’s personal or business funds. If the landlord fails to maintain a proper separate account, the landlord forfeits the right to retain any portion of the deposit.

What Your Landlord Can and Cannot Deduct in Tennessee

Unpaid rent or other amounts owed under the lease; physical damage to the unit beyond normal wear and tear as documented on the move-out inspection listing; and other charges specifically allowed by the lease agreement. Ordinary turnover cleaning is generally considered the landlord’s responsibility and is not a valid deduction unless the tenant left the unit excessively dirty or damaged.

Normal wear and tear vs damage: Tennessee does not provide a statutory definition of normal wear and tear, but courts and guidance materials generally treat the following as normal wear and tear that a landlord cannot deduct for: faded or slightly worn paint, carpet wear from ordinary foot traffic, minor scuff marks on walls or floors, and small nail holes from hanging lightweight pictures.

In contrast, large holes in walls, torn or stained carpets beyond normal use, broken appliances, broken windows, and damage from pets or abuse are considered tenant damage and may be deducted.

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How to Get Your Deposit Back in Tennessee

First, send the landlord a written demand letter requesting return of the deposit and explaining why the deductions are wrongful. Keep a copy. If the landlord does not respond or refuses, you may file a lawsuit in General Sessions Court (Tennessee’s equivalent of small claims court) for amounts up to 25000, or in Circuit Court for larger amounts.

Bring your lease, move-out inspection listing (noting any items you dissented on), photos of the unit at move-in and move-out, and any correspondence with the landlord. Many tenants can recover the full deposit if the landlord failed to follow proper procedures. Check with your local court clerk for filing fees and forms.

Other Tennessee deposit rules: Tennessee’s Uniform Residential Landlord and Tenant Act (TCA 66-28-101 et seq.) only applies in counties with a population of more than 75,000 based on the 2010 U.S. Census. Covered counties include Anderson, Blount, Bradley, Davidson, Greene, Hamilton, Knox, Madison, Maury, Montgomery, Rutherford, Sevier, Shelby, Sullivan, Sumner, Washington, Williamson, and Wilson.

If you rent in a county not on this list, the URLTA security deposit rules may not apply, and you may need to rely on your lease terms and common law.

Check with a local attorney or legal aid office if you are unsure whether your county is covered. Additionally, landlords may require a separate pet deposit (unless the animal is a service animal or emotional support animal with proper documentation). Tennessee law does not require landlords to accept pets, and pet deposits are not capped by statute.

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Official Tennessee Sources & Resources

Understanding Tennessee Security Deposit Law

Your Tennessee security deposit is your money until the landlord proves a lawful deduction. Tennessee security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the Tennessee security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.

Document the condition of your unit at move-in and move-out — photos are the best protection for your Tennessee security deposit.

This Tennessee security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.

More Tennessee Tenant Rights Guides

Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.

Renting? Protect your belongings — compare renters insurance at Home Insure Guide. Divorce involving a lease? See Divorce Help Guide. Unsafe housing / toxic mold injury? Some cases qualify — see Mass Tort Info.