In the Volunteer State, landlords often prefer residential leases that leave room for adjustments. If this sounds like you, a month-to-month rental agreement may be the perfect solution. These rental contracts allow the tenancy to continue a month at a time, automatically renewing unless either the landlord or the tenant gives notice to end the agreement.
A Tennessee month-to-month lease agreement is still a fully legal rental agreement. Even without a set end date, the lease must comply with the Tennessee Uniform Residential Landlord and Tenant Act. Below, we’ll take a closer look at everything landlords need to know about a tenancy at will in Tennessee.
Disclosures (4)
Before a tenant moves in, Tennessee law requires landlords to provide specific disclosures that clarify ownership, condition, and known risks associated with the property.
- Lead-based paint: Federal law requires all landlords to provide tenants with any known information on lead paint and its hazards, along with the EPA’s lead safety pamphlet, for all homes built before 1978.
- Agent and landlord identification: Landlords must provide the name and contact information of the landlord and the property manager before their tenant moves in (Tenn. Code § 66-28-302(a)).
- Showings: A lease template must state that the landlord has the right to bring potential new tenants in to see the property during the tenant’s last 30 days in the unit (Tenn. Code § 66-28-403(e)(5)).
- Security deposit information: If a landlord collects a security deposit from their tenant, they must tell them the name and address of the bank holding the funds (Tenn. Code § 66-28-301(a))
Optional Disclosures and Addenda
While not required by Federal or state law, these optional disclosures can go a long way toward providing clarity for your tenant and preventing any future disputes.
Asbestos: Discloses any known asbestos in the unit and gives tenants suggestions for limiting or preventing exposure.
Bed bugs: Informs tenants of any known or suspected bed bug infestations in the unit or adjacent units.
Late/returned check fees: Details the fees for late or returned rent checks. Tennessee law limits late fees to 10% of the past-due amount, and the landlord can charge only after the rent is 5 days past due. Returned check fees are capped at $30 per check.
Medical marijuana use: Details the rules regarding the use of medical marijuana in the unit.
Mold: Informs tenants of any mold issues in the unit and available remediation options.
Move-in checklist: Outlines the unit’s condition at move-in, including any existing damage. Landlords can use this checklist at move-out to compare conditions and calculate any deductions.
Non-refundable fees: Details any non-refundable fees the landlord plans to charge associated with the lease.
Shared utilities: If any units share a utility meter, or if the landlord shares a meter with their tenant, they must explain how they will divide the charges.
Smoking: Outlines the smoking policy for the rental, including any designated smoking areas on the property.
Additional Tennessee Month-to-Month Lease Laws
State laws apply to the tenancy at the start of each new month. These laws help guide how to handle various aspects of the tenancy, from collecting a security deposit to terminating the agreement.
Notice to Terminate a Month-to-Month Agreement
Tennessee sets straightforward notice requirements for ending a month-to-month tenancy.
Required notice for tenant: Tenants must give at least 30 days’ written notice before ending a month-to-month lease (Tenn. Code § 66-28-512).
Required notice for the landlord: Landlords must also provide at least 30 days’ written notice to terminate a month-to-month agreement (Tenn. Code § 66-28-512).
Laws Governing Rent Increases
While it’s true that month-to-month agreements give landlords flexibility to respond to changing market conditions, Tennessee law still requires landlords to give advance notice to their tenants.
Tennessee does not enforce rent control or rent stabilization. Landlords may raise the rent by any amount, as long as they provide proper written notice before the increase takes effect. Most landlords provide at least 30 days’ notice to align with the termination timeline.
Rent increases may not be retaliatory or discriminatory in nature.
Lease Violations and Eviction
Lease violations can happen, even to the best tenants. Tennessee law outlines how landlords should handle violations to help themselves and their tenants get back on track.
Missed rent payment: If a tenant fails to pay rent by the end of the grace period, landlords may issue a 14-Day Notice to Pay or Quit before filing for eviction (Tenn. Code § 66-28-505).
Lease violation: For violations other than nonpayment, landlords must provide a 14-day Notice to Cure or Quit, giving the tenant time to correct the issue before termination (Tenn. Code § 66-28-505).
Lease abandonment: If a tenant breaks their lease early, they may be required to pay rent until the landlord finds someone to occupy the property (Tenn. Code § 66-28-507).
Self-help evictions: Self-help evictions are illegal in Tennessee, meaning landlords may not take steps to remove the tenant themselves. This includes changing locks, shutting off utilities, or removing tenant belongings without a court order.
Rent Payment Laws
Rent payment rules define how landlords enforce the lease from month to month.
Rent control/stabilization: Tennessee has no rent control or rent stabilization laws.
Late rent fees: Tennessee landlords can charge late fees up to 10% of the monthly rent (Tenn. Code § 66-28-201(d)).
Grace period: Tennessee requires landlords to offer their tenants a 5-day grace period (Tenn. Code § 66-28-201(d)).
Tenant’s right to withhold rent: In Tennessee, a tenant can legally withhold and deduct rent, but only after notifying the landlord in writing that an essential utility or maintenance service has not been provided (Tenn. Code § 66-28-502(a)(1)(A)).
Pet rent laws: Landlords may charge pet rent or collect pet deposits as long as the lease clearly outlines the charges.
Security Deposits
Tennessee law sets clear expectations for how landlords can legally collect and return security deposits. Here’s what you need to know.
Maximum amount: Tennessee does not limit the amount a landlord may collect as a security deposit.
Deposit receipt: In Tennessee, it is not legally required to provide a receipt to a tenant for their security deposit payment; however, it is considered best practice, especially if they pay in cash.
Interest payments: State law does not require landlords to pay interest on security deposits.
Security deposit return: Landlords must return the security deposit, minus any deductions, within 30 days after the tenant moves out (Tenn. Code § 66-28-301).
Deductions: Tennessee landlords may deduct unpaid rent or damages beyond normal wear and tear. If a landlord deducts from the security deposit, they must provide an itemized list of these deductions.
Property Access Laws
Tennessee law strives to balance a landlord’s need to access the property with their tenant’s privacy.
Advance notice: In Tennessee, landlords must give tenants 24 hours’ notice before accessing the property (Tenn. Code § 66-28-403(a)).
Immediate access: In an emergency, the landlord may enter the property without prior notice to the tenant (Tenn Code § 66-28-403(b)).
Harassment: Failing to follow these guidelines may constitute landlord harassment. In these cases, a landlord’s tenant could terminate their lease early without penalty.
