| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, utilities, and late fees
Costs of damage Damages due to breach of lease |
| Return Deadline | No statute |
| Itemized Deductions | Required |
| Penalty for Late Return | No statute |
For laws on security deposit collections and holdings in Tennessee, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Tennessee
Tennessee allows the following deductions from a security deposit:
- Unpaid rent, utilities, and late fees
- Damages as a result of a breach of the lease
- Costs of damage excluding normal wear and tear
Most states, including Tennessee, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Tennessee?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Tennessee?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Tennessee?
Tennessee landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Tennessee?
Landlords can make deductions from the security deposit for cleaning, but only if the tenant causes damage that requires cleaning such as wine stains on the carpet.
Can the Landlord Charge for Painting in Tennessee?
Tennessee landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Tennessee
When returning security deposits in Tennessee, landlords must give tenants written notice of their right to attend the final inspection scheduled during normal business hours. The notice must be sent no later than 5 days after the tenant’s intent to vacate (or the same day the landlord sends a request to vacate).
Counties with populations smaller than 75,000 (as of the 2010 US Census) are exempt from the security deposit rules, including the final inspection requirement.
The inspection must occur within 4 days after the tenant vacates the rental unit. If the tenant is present at the inspection, the landlord and tenant must create a comprehensive list of damage (if any) to the rental unit.
The tenant must either sign the list (thereby waiving their right to dispute) or indicate which items they disagree with.
After the inspection, landlords may make additional deductions for damages discovered within 30 days after the tenant moved out or 7 days after the next tenant moves in, whichever is earlier, but not later.
The tenant waives their right to attend the final inspection if they:
- Vacate or abandon the rental unit without giving written notice
- Fail to contact the landlord regarding their right to an inspection
- Fail to attend the inspection at the scheduled time
- Are evicted
How Long Do Landlords Have to Return Security Deposits in Tennessee?
Unlike in most states, Tennessee does not have a specific deadline for the return of a security deposit. Landlords must return the security deposit to the tenant within a reasonable length of time with a written notice stating how much they withheld (if any).
If the landlord makes deductions, they must leave the withheld portion of the security deposit in its holding account for 60 days. If the tenant does not respond after 60 days, the landlord can withdraw and keep the unclaimed portion of the security deposit.
Do Landlords Owe Interest on Security Deposits in Tennessee?
Tennessee law does not require landlords to provide interest on held security deposits.
How Do Landlords Give Notice in Tennessee?
Landlords must send written notice to the tenant’s last known (or reasonably determined) address including the amount of the security deposit due to the tenant.
If the tenant does not attend the final inspection, the landlord must send a comprehensive list of damages with estimated costs to repair to the tenant’s last known address, upon written request by the tenant.
Can a Security Deposit Be Used for Last Month’s Rent in Tennessee?
Tennessee law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Tennessee
If landlords do not return the security deposit or fail to provide tenants the opportunity to attend the final inspection, tenants can file for damages in court.
Unlike most other states, Tennessee law does not provide an additional penalty for violation of the security deposit rules. However, in some cases, tenants can recover punitive damages, attorneys’ fees, and/or court costs.
Tenants can also take legal action against a landlord for:
- Disagreement with the itemized deductions
- Failure to hold the security deposit in a financial account
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Tennessee?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of General Sessions Court if the amount claimed is less than $25,000. If the amount is greater, the tenant must file a civil case in the Circuit Court.
A small claims case regarding the return of a security deposit must be filed within 6 years.
Cases are filed in the General Sessions Court where the property is located or where the defendant lives. An attorney is not required but permitted. Filing fees vary by court.
Sources
- 1 Tenn. Code § 66-28-104(14)
-
(A) “Security deposit” means an escrow payment made to the landlord under the rental agreement for the purpose of securing the landlord against financial loss due to damage to the premises occasioned by the tenant’s occupancy other than ordinary wear and tear and any monetary damage due to the tenant’s breach of the rental agreement;
(B) “Security deposit” shall in no way infer that the landlord is providing any service for the personal protection or safety of the tenant beyond that prescribed by law.
Source Link - 2 Tenn. Code § 66-28-301(g)
-
Nothing in this section precludes the landlord from recovering the costs of any and all contractual damages to which the landlord may be entitled, plus the cost of any additional physical damages to the premises that are discovered after an inspection that has been completed pursuant to subsection (b); provided, however, that costs of any physical damage to the premises may only be recovered if the damage was discovered by the landlord prior to the earlier of:
(1) Thirty (30) days after the tenant vacated or abandoned the premises; or
(2) Seven (7) days after a new tenant takes possession of the premises.
Source Link - 3 Tenn. Code § 66-28-301(b)(1)(A)
-
Upon request by the landlord for a tenant to vacate or within five (5) days after receipt by the landlord of written notice of the tenant’s intent to vacate, the landlord may provide notice to the tenant of the tenant’s right to be present at the inspection of the premises. Such notice may advise the tenant that the tenant may request a time of inspection to be set by the landlord during normal working hours. The landlord may require the inspection to be after the tenant has completely vacated the premises and is ready to surrender possession and return all means of access to the entire premises; provided, that the inspection shall be either on the day the tenant completely vacates the premises or within four (4) calendar days of the tenant vacating the premises. If the landlord provides written notice of the tenant’s right to be present at the landlord’s inspection and the tenant schedules an inspection, but fails to attend such inspection, the tenant waives the right to contest any damages found by the landlord as a result of such inspection by the landlord; provided, that notice of the tenant’s waiver upon such circumstances is set out in the rental agreement;
Source Link - 4 Tenn. Code § 66-28-102(a)
-
This chapter applies only in counties having a population of more than seventy-five thousand (75,000), according to the 2010 federal census.
Source Link
- 5 Tenn. Code § 66-28-301(b)(1)(B)
-
If a tenant requests a mutual inspection as provided in subdivision (b)(1)(A), the landlord and tenant shall then inspect the premises and compile a comprehensive listing of any presently ascertainable damage to the unit that is the basis for any charge against the security deposit and the estimated dollar cost of repairing the damage. The landlord and tenant shall sign the listing. Except as provided in subsection (g), the signatures of the landlord and the tenant on the listing shall be conclusive evidence of the accuracy of the listing. If the tenant refuses to sign the listing, the tenant shall state specifically in writing the items on the list to which the tenant dissents;
Source Link - 6 Tenn. Code § 66-28-301(b)(2)(B)
-
The tenant shall not have a right to inspect the premises as provided in this section if the tenant has:
(i) Vacated the rental premises without giving written notice;
(ii) Abandoned the premises;
(iii) Been judicially removed from the premises;
(iv) Not contacted the landlord after the landlord’s notice of right to mutual inspection of the premises;
(v) Failed to appear at the arranged time of inspection as provided in subdivision (b)(1); or
(vi) If the tenant has not requested a mutual inspection pursuant to subsection (b) or is otherwise inaccessible to the landlord.
Source Link - 7 Tenn. Code § 66-28-301(e) & (f)
-
(e) Should a tenant vacate the premises with unpaid rent or other amounts due and owing, the landlord may remove the deposit from the account and apply the moneys to the unpaid debt.
(f) In the event the tenant leaves not owing rent and having any refund due, the landlord shall send notification to the last known or reasonably determinable address, of the amount of any refund due the tenant. In the event the landlord shall not have received a response from the tenant within sixty (60) days from the sending of such notification, the landlord may remove the deposit from the account and retain it free from any claim of the tenant or any person claiming in the tenant’s behalf.
Source Link - 8 Tenn. Code § 66-28-301(b)(2)(A)
-
If the tenant has acted in any manner set out in subdivisions (b)(2)(B)(i)-(vi), the landlord may inspect the premises and compile a comprehensive listing of any presently ascertainable damage to the unit that is the basis for any charge against the security deposit and the estimated dollar cost of repairing the damage without providing the tenant an opportunity to inspect the premises; provided, that the landlord provides a written copy, sent by certificate of mailing to the tenant, of the listing of any damages and estimated cost of repairs to the tenant upon the tenant’s written request.
Source Link - 9 Tenn. Code § 16-15-501(d)(1)
-
The jurisdiction of courts of general sessions, where they have been created, shall extend to the sum of twenty-five thousand dollars ($25,000) in all civil cases, both law and equity; provided, that this section shall not apply to cases of forcible entry and detainer, in which the court shall have unlimited original jurisdiction; and provided further, that this section shall not apply to actions to recover personal property, in which the court shall have unlimited original jurisdiction, including jurisdiction to award an alternative money judgment; and general sessions judges shall have jurisdiction to issue restraining orders and to enforce the penalty provisions for violation of those restraining orders.
Source Link
