{"id":376497,"date":"2019-06-11T11:47:55","date_gmt":"2019-06-11T16:47:55","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/tennessee-law\/tennessee-security-deposit-laws.html"},"modified":"2019-06-11T15:53:46","modified_gmt":"2019-06-11T20:53:46","slug":"tennessee-security-deposit-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/tennessee-law\/tennessee-security-deposit-laws.html","title":{"rendered":"Tennessee Security Deposit Laws"},"content":{"rendered":"\n
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Tennessee Security Deposit Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

A security deposit<\/a> is a sum of money (usually one-months’ rent) separate from the advance rent payments that a new tenant pays to the landlord. The security deposit serves to limit the financial loss to a landlord if a tenant breaks the lease and moves out early or damages property beyond normal wear and tear. The rules surrounding security deposits vary by state. Unlike some states, Tennessee has no statutory limits as to what a landlord can charge a tenant for a security deposit.<\/p>\r\n

Summary of Tennessee Security Deposit Laws<\/h2>\r\n

Security deposit laws are determined by the jurisdiction of the state where the property is located. Because local and county laws may differ, be sure to check out the relevant laws for your area. For a plain English summary of statewide laws, check out the chart below.<\/p>\r\n\r\n

Statutes<\/b><\/p>\r\n<\/td>\r\n

Tennessee Code Title 66. Property:<\/p>\r\n

Landlord Duties<\/b><\/p>\r\n

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Storage of the Security Deposit<\/i><\/b><\/p>\r\n

A landlord must deposit a tenant’s security deposit in a separate account. The account must be in a financial institution that’s subject to government regulations or Tennessee state regulations, but the account doesn’t have to earn interest.<\/p>\r\n

If a landlord doesn’t store a tenant’s deposit in an account properly, the landlord can’t keep any portion of the tenant’s security deposit.<\/p>\r\n

Written Notice<\/b><\/i><\/p>\r\n

The landlord must notify the tenant in writing that the security deposit has been placed in a separate account. The landlord must include the location of the security, but they aren’t required to provide the tenant with the account number.<\/p>\r\n<\/td>\r\n<\/tr>

Walk-Through Inspection<\/b><\/p>\r\n<\/td>\r\n

Tennessee requires landlords and tenants to complete a walk-through inspection to document any property damage:<\/p>\r\n

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  • When the landlord gives tenant the notice to vacate the unit or within 5 days<\/i><\/b> of receiving a tenant’s written notice to vacate: the landlord must give tenant written notice of the tenant’s right to be present for the walk-through;<\/li>\r\n
  • The inspection must take place within 4 days<\/i><\/b> of the tenant moving out of the unit;<\/li>\r\n
  • The tenant can request a time for the inspection to take place during normal business hours, but the landlord will set the actual inspection time.<\/li>\r\n<\/ul>\r\n

    Tenant Present for Inspection<\/i><\/b><\/p>\r\n

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    • If the tenant is at the inspection, both parties must go through the property and put together a list of all damages to the property and approximate the cost of repair. The landlord and the tenant must sign this list. The tenant’s signature serves as acceptance of the damages.<\/li>\r\n
    • If the tenant refuses to sign, they must put together a written list indicating the damages they don’t agree with. The tenant can then pursue legal action concerning these items.<\/li>\r\n<\/ul>\r\n

      Tenant No-show for Inspection<\/b><\/i><\/p>\r\n

      If the tenant has an inspection time with the landlord, but fails to show, the tenant loses the right to contest any damages the landlord lists in the inspection report.<\/p>\r\n<\/td>\r\n<\/tr>

Deadline for the Return of the Security Deposit<\/b><\/p>\r\n<\/td>\r\n