Tennessee Security Deposit Law: A 2026 Landlord's Guide
How much can you charge in Tennessee?
No statutory cap. Deposit must be held in a separate account (URLTA counties).
Returning the deposit: the 30 days deadline
After the tenancy ends, Tennessee gives you 30 days to return the deposit. Itemized list with tenant inspection rights. Blowing the deadline is the single most common way landlords lose deposit disputes — courts read these statutes strictly, and in many states a late or missing itemization forfeits your right to keep anything.
What you can deduct
- Unpaid rent and other amounts the lease authorizes
- Damage beyond normal wear and tear — holes in walls, broken fixtures, pet damage
- Never normal wear and tear — faded paint, carpet worn by ordinary use, minor scuffs
The dispute is almost never about the rule — it's about the evidence. Date-stamped move-in and move-out photos plus an itemized statement with receipts is what wins in small-claims court.
Interest and holding requirements
Tennessee has no general statewide requirement to pay interest on residential security deposits (local ordinances can differ — check your city). Some states in this position still regulate where deposits are held; see Tenn. Code § 66-28-301 for any account or disclosure rules that apply to you.
Track every deposit — and settle it correctly when the tenant leaves
LandlordPro tracks every deposit you hold, carries it across lease renewals, walks you through the return-vs-keep settlement with an itemized record, and reminds you of Tennessee's deadline. Free to start — up to 4 units.
Start tracking deposits free →Frequently asked questions
How much can a landlord charge for a security deposit in Tennessee?
There is no statewide dollar cap — the lease sets the amount, though local ordinances may impose limits. See Tenn. Code § 66-28-301.
How long does a Tennessee landlord have to return a security deposit?
30 days after the tenancy ends, generally with an itemized statement of any deductions. Missing the deadline can forfeit your right to deduct — and in many states triggers statutory damages.
What can a landlord deduct from a deposit in Tennessee?
Typically unpaid rent, damage beyond normal wear and tear, and other charges the lease authorizes. Normal wear and tear — faded paint, worn carpet from ordinary use — is never deductible. Documentation (move-in/move-out photos and an itemized list) is what wins disputes.
Handling Tennessee deposits with LandlordPro
LandlordPro keeps a ledger of every deposit you hold — who paid it, which lease it secures, and what happened to it. When a tenancy ends, the settlement workflow records what you returned and what you kept (with reasons), generates a tenant-facing settlement statement, and books any kept portion into your income reports correctly. Combined with the Tennessee eviction guide and move-in/move-out inspections with photos, you'll have the paper trail that deposit statutes reward.
LandlordPro is a software tool, not a law firm. This page summarizes statutes as of June 2026 for general information; amounts, deadlines, and requirements change. Verify Tenn. Code § 66-28-301 or consult a licensed attorney in Tennessee before acting.