Tennessee Statewide Rule

Tennessee Security Deposit Law: No Cap, Separate Account, 60-Day Rule

Some RestrictionsApplies statewide across Tennessee (2026)

Tennessee sets no statutory cap on security deposits. Under Tenn. Code Ann. § 66-28-301, landlords in counties over 75,000 must hold deposits in a separate account, let the tenant inspect at move-out, and provide an itemized damage list. If a refund notice goes unanswered for 60 days, the landlord may keep the balance.

Key Facts

Deposit cap: No statutory cap; landlord may set the amount
Return deadline: Itemized list on written request; 60 days to respond to refund notice before forfeiture
Itemized statement: Required; mutual move-out inspection list signed by both parties, plus written list on request
Statute: Tenn. Code Ann. § 66-28-301 (URLTA)
Applies where: Counties with population over 75,000 (§ 66-28-102)

Last verified: 2026-06-27

Full Breakdown

Tenn. Code Ann. § 66-28-301, part of the Uniform Residential Landlord and Tenant Act, applies only in counties with a population over 75,000 (§ 66-28-102); smaller counties fall under general law. The statute imposes no dollar cap on the deposit. Landlords must deposit funds in an account "used only for that purpose." At move-out the tenant has a right to inspect within four days, and the landlord and tenant "shall inspect the premises and compile a comprehensive listing of any presently ascertainable damage" and both sign it. The landlord must give an itemized damage list on the tenant's written request. If the landlord sends a refund notice and the tenant does not respond within 60 days, the landlord may keep the balance free of the tenant's claim.

Violations & Penalties

Under Tenn. Code Ann. § 66-28-301, a landlord who fails to keep the deposit in a separate account and to provide the required itemized listing of damages forfeits the right to retain any portion of the security deposit. The tenant may then recover the full deposit.

Frequently Asked Questions

How much can a landlord charge for a security deposit in Tennessee?

There is no statutory limit. Tenn. Code Ann. § 66-28-301 sets no maximum on the amount of a residential security deposit, so a Tennessee landlord may charge whatever the lease provides. The deposit must be held in a separate account used only for tenant security deposits.

How long does a landlord have to return a security deposit in Tennessee?

Tennessee's URLTA sets no fixed return deadline, but uses a notice procedure: after the landlord sends written notice of any refund due, the tenant has 60 days to respond. If the tenant does not respond within 60 days, the landlord may keep the balance free of the tenant's claim under § 66-28-301.

What can a landlord deduct from a security deposit in Tennessee?

A landlord may deduct unpaid rent and the cost of damage beyond normal wear and tear. Under § 66-28-301 the landlord and tenant should jointly inspect at move-out and sign a list of ascertainable damage, and the landlord must give a written itemized list of damages on the tenant's written request.

Sources

Tenn. Code Ann. § 66-28-301 (Security Deposits, URLTA)

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