Knoxville landlords follow Tennessee URLTA security deposit rules at TCA 66-28-301, which require separate accounting, written itemization of deductions, and prompt return of remaining funds after move-out.
Under TCA 66-28-301, Tennessee landlords must hold security deposits in a separately identifiable account at a Tennessee financial institution and disclose the location to tenants on request. After tenancy ends, landlords must inventory damages within statutory windows, send tenants written notice of deductions, and refund the balance. Tenants who dispute charges have the right to inspect the property before final accounting. Knoxville does not impose deposit caps beyond URLTA, but failure to comply with these procedures forfeits the landlord right to retain the deposit.
Commingling deposit funds, missing itemization deadlines, or wrongful retention exposes landlords to actual damages and the loss of the right to claim against the deposit.
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