Tennessee URLTA (TCA 66-28-301) requires landlords in URLTA-counties (including Shelby) to hold security deposits in a separate account and return them with itemized deductions within 30 days of move-out.
Memphis landlords are bound by TCA 66-28-301: deposits must sit in a separate, identifiable account at a Tennessee bank, and the tenant must be told the bank's name. At move-out, the landlord performs a written inspection (tenant invited) and must mail an itemized statement plus refund within 30 days. Tennessee imposes no statutory cap on deposit amount, but failure to follow the procedure forfeits deduction rights. Memphis Code Enforcement does not adjudicate deposit disputes; tenants sue in Shelby County General Sessions Court.
Commingling deposits with operating funds, missing the 30-day refund window, or skipping the itemized statement forfeits the landlord's right to withhold deductions and exposes them to small-claims suits.
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See how Memphis's security deposit rules rules stack up against other locations.
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