Tennessee security deposit rules.
The Tennessee rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Tenn. Code Ann. § 66-28-301 · Not legal advice
How much can be charged
No statutory limit on the deposit amount.
When it has to come back
No fixed statutory deadline. The landlord inspects on the day the tenant vacates or within four calendar days, compiles an itemised damage list, and sends notice of any refund due to the tenant’s last known address; if the tenant does not respond within 60 days the landlord may keep the deposit. Damage not found within 30 days of vacating (or before a new tenant moves in) cannot be charged.
Interest
No interest is required.
Where the money has to sit
Separate account used only for deposits at a state- or federally regulated institution; the tenant must be told its location at lease signing (the account number need not be disclosed).
What catches operators out
- The landlord must notify the tenant of the right to be present at the move-out inspection within five days of receiving notice to vacate; a tenant who schedules the inspection and skips it waives the right to contest damages.
- URLTA (including § 66-28-301) applies only in counties with a population over 75,000 at the 2010 census; smaller counties have no state deposit statute.
What this looks like with Standby in Tennessee.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Tennessee law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Tennessee. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.