Tennessee Security Deposit Law: Return Deadline, Limits, and How to Get It Back

In Tennessee, the rules for residential security deposits come mainly from the Tennessee Uniform Residential Landlord and Tenant Act (often cited as Tenn. Code Ann. § 66-28-301). Three things stand out for renters: Tennessee sets no maximum dollar limit on how much a landlord may charge, the landlord must hold your deposit in a separate account at a bank or other lending institution, and the landlord must give you a written, itemized list of any deductions. One big wrinkle that surprises people: the Act only applies in counties with a population of more than 75,000. In smaller, more rural Tennessee counties, your lease and general contract law control instead, so the protections below may not apply the same way. Because the details and section numbers change over time, confirm the current statute or talk to a Tennessee attorney before you act.

How much can a Tennessee landlord charge?

Tennessee does not cap security deposits by statute. A landlord can ask for one month's rent, two months', or some other figure, as long as the amount is set out in the lease and you agree to it. Because there is no legal ceiling, the practical limit is what the market and the written lease allow.

• Read the lease closely so you know the exact deposit amount and what it covers.
• Tennessee law requires the landlord to disclose the location of the separate account where your deposit is held. You can ask for this in writing.
• A non-refundable "fee" (for example, a pet fee or cleaning fee) is not the same as a refundable deposit. Make sure the lease is clear about which is which.

The inspection and the itemized statement

Tennessee's process is built around an inspection and a written accounting rather than a single fixed countdown that many other states use. After you move out, the landlord is expected to inspect the unit and prepare an itemized list of any damages and the cost to repair them. You generally have the right to be present at the move-out inspection and to inspect the property, so ask about scheduling it.

• If you disagree with the landlord's assessment, you can note your objections. The statute contemplates a signed itemized list when there is a dispute over deductions.
• Under Tennessee's Act, if a tenant who is owed a refund does not respond to the itemized list or claim the deposit within roughly 60 days, the landlord may keep it. Do not let that window pass; send your forwarding address and a written demand promptly.
• Always give the landlord a written forwarding address. Many disputes happen simply because the landlord says it had nowhere to mail the check.

What can and cannot be deducted

A Tennessee landlord may deduct for unpaid rent and for actual damage beyond normal wear and tear. The line between "damage" and ordinary use is the heart of most fights.

• Usually deductible: unpaid rent, large stains or burns in carpet, broken fixtures or appliances, holes in walls, missing items, and unusual filth that needs professional cleaning.
• Not deductible (normal wear and tear): faded paint, minor scuffs, small nail holes, worn carpet from ordinary walking, and the general aging of the unit. Routine touch-up and cleaning that any tenancy creates is the landlord's cost of doing business.

Tennessee does not require landlords to pay interest on security deposits, so do not expect interest unless your lease specifically promises it.

If the landlord wrongfully keeps your deposit

If a landlord fails to follow the Act, for example by not keeping the deposit in a separate account or by withholding without a proper itemized statement, a tenant can lose certain protections, and the tenant may pursue the deposit in court. Tennessee's statute is not as generous as states that automatically award double or triple damages, so do not assume a guaranteed penalty multiplier. Keep your expectations grounded and document everything.

• Send a written demand letter first, by a method that proves delivery, stating the amount owed and a deadline (a week or two is reasonable).
• Gather your evidence: the lease, the deposit receipt, dated move-in and move-out photos or video, the itemized list, and your communications.
• If the landlord still refuses, you can sue in General Sessions Court, the Tennessee court that handles small civil claims. Its civil jurisdiction reaches up to $25,000, which easily covers any deposit dispute, and filing fees are modest.
• You generally do not need a lawyer for a small deposit claim in General Sessions Court, but legal aid or a Tennessee landlord-tenant attorney is worth a call if the amount is large, the facts are messy, or the landlord has a lawyer.

A few practical reminders

This is general information, not legal advice. Tennessee landlord-tenant law changes, and cities and counties can have their own rules; remember the 75,000-population threshold that decides whether the state Act even applies to your rental. Before you send a demand or file suit, confirm the current version of Tenn. Code Ann. § 66-28-301 and the General Sessions filing rules for your county, or consult a Tennessee attorney or local legal aid office.