Tennessee Security Deposit Law: Limits, Deadlines, and Penalties
What Tennessee landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Tennessee?
Tennessee sets no cap on security deposits. A 2024 bill (HB 2025/SB 1893) that would have capped deposits at one month's rent passed the House but failed in the Senate Judiciary Committee and never became law, despite widespread online claims to the contrary.
Tennessee places no limit on pet deposits; refundable pet deposits are part of the security deposit and must follow the same dedicated-account and itemization rules in URLTA counties.
When must the deposit be returned?
Tenn. Code § 66-28-301 sets no explicit number of days for refunding the deposit; landlords must act within a reasonable time, and 30 days is the widely observed standard. Related statutory clocks do exist: the landlord may only charge for damages discovered within 30 days of the tenant vacating (or 7 days after a new tenant takes possession, whichever is earlier), and if a tenant does not respond to a mailed refund notification within 60 days, the landlord may keep the deposit.
Before deducting, the landlord must compile an itemized list of damages with estimated repair costs and notify the tenant, who may request an inspection; if both parties sign the list, the signatures are conclusive evidence of its accuracy. A landlord who skips the required account or itemization procedures forfeits the right to retain any portion of the deposit.
What happens if a landlord misses the deadline?
A landlord who fails to keep the deposit in the required dedicated account or fails to provide the damage listing cannot retain any portion of the deposit, and the tenant can sue to recover it. Tennessee's statute provides no double- or treble-damages multiplier or automatic attorney fees.
Interest and holding requirements
Tennessee does not require landlords to pay interest on security deposits.
In counties where the URLTA applies, all security deposits must be kept in an account used only for that purpose at a regulated bank or lending institution, and the tenant must be told the location of the account (though not the account number) when the deposit is collected.
Recent changes to the law
No changes to Tennessee's security deposit statute took effect in 2024-2026. Note: many websites claim Tennessee capped deposits at one month's rent in 2024 — that bill (HB 2025/SB 1893, the Residential Rental Fee Transparency and Junk Fee Prohibition Act) failed in the Senate Judiciary Committee on March 12, 2024, and is not law.
What Tennessee landlords get wrong
Tennessee's deposit statute only applies where the Uniform Residential Landlord and Tenant Act applies: counties with populations over 75,000 (Shelby, Davidson, Knox, Hamilton, Rutherford, Williamson, Montgomery, and other large counties). In smaller counties there are no statutory deposit rules at all — only the lease and common law govern. In URLTA counties, the dedicated deposit account is the rule small landlords most often miss, and violating it forfeits your right to keep any of the deposit. Track the damage-discovery windows: only damage found within 30 days of move-out (or 7 days after a new tenant moves in) is chargeable.
The law itself
Frequently asked questions
Is there a limit on security deposits in Tennessee?
No. Tennessee has no statutory cap on security or pet deposits. Despite many online guides claiming a one-month cap took effect in 2024, that bill (HB 2025/SB 1893) died in a Senate committee and never became law. Landlords typically charge one month's rent as a market norm, not a legal requirement.
How long does a Tennessee landlord have to return a security deposit?
The statute sets no fixed number of days — refunds must simply happen within a reasonable time, and 30 days is the accepted standard. Two hard deadlines do exist: landlords can only charge for damage discovered within 30 days of move-out (or 7 days after a new tenant moves in), and unclaimed refunds may be kept if the tenant does not respond within 60 days of a mailed notification.
Does a Tennessee landlord have to keep the deposit in a separate account?
Yes, in counties covered by the URLTA (population over 75,000, including Nashville, Memphis, Knoxville, and Chattanooga metros). The deposit must sit in an account used only for tenant deposits at a regulated institution, and the tenant must be told where it is held. A landlord who ignores this loses the right to keep any portion of the deposit.
Do Tennessee security deposit laws apply everywhere in the state?
No. Tenn. Code § 66-28-301 applies only in counties with more than 75,000 residents under the URLTA. In Tennessee's smaller, rural counties there are no statutory security deposit rules — no account requirement, no itemization mandate, no deadline — so the lease terms and general contract law control. Check your county's population before assuming the statute applies.
Keep reading
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Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.