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Deposits

Security deposit law in Tennessee

Tennessee's cap, return deadline, itemization rule, and wrongful-withholding penalty, with the controlling statute linked.

4 min read

Short answer

Tennessee sets no statutory limit on the security deposit a landlord may collect, and there is no fixed statutory deadline for returning it. Wrongful withholding exposure is forfeit right to withhold (no separate account). The controlling text is Tenn. Code § 66-28-301, verified July 2026; confirm the current statute before acting, since legislatures amend deposit law and cities layer stricter rules on top.

No statutory limit. The return rule is no fixed statutory deadline. The controlling text is Tenn. Code § 66-28-301.

Shared move-in, deduction, and refund workflow: the national state-law hub.

The itemized statement rule

You must inspect the unit, list any damage, and give the tenant a chance to inspect before deducting. The itemized list and the tenant's inspection right are the core requirements even without a day-count.

Where the deposit must be held

A landlord who operates more than one unit must hold every deposit in a separate account used only for tenant deposits at a regulated financial institution. Failing to keep the separate account forfeits the right to retain any of the deposit.

Exposure for wrongful withholding

Forfeit right to withhold (no separate account).

A landlord who does not maintain the required separate account, or skips the inspection and itemization steps, loses the right to keep any part of the deposit and owes it back in full. Here the separate-account rule, not a missed deadline, is the usual failure.

Tennessee has no statutory deposit maximum

No statutory limit.

The return rule without a fixed day count

no fixed statutory deadline.

Tennessee sets no fixed number of days to return a deposit. Instead, you must send written notice of any refund due to the tenant's last known address, and if the tenant does not respond within 60 days you may keep the deposit. The duty runs on that notice-and-response clock rather than a hard deadline.

Compare Tennessee with neighboring states

  • Kentucky: no statutory limit; return rule: 30 to 60 days.
  • Virginia: two months' rent; return rule: 45 days.
  • North Carolina: two months' rent; return rule: 30 days.
  • Georgia: two months' rent; return rule: 30 days.
  • Alabama: one month's rent; return rule: 35 days.
  • Mississippi: no statutory limit; return rule: 45 days.
  • Arkansas: two months' rent; return rule: 60 days.
  • Missouri: two months' rent; return rule: 30 days.

Verified against Tenn. Code § 66-28-301 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.

Questions landlords actually ask

Does Tennessee cap residential security deposits?
No statutory limit
What is the security deposit return deadline in Tennessee?
no fixed statutory deadline. Tennessee sets no fixed number of days to return a deposit. Instead, you must send written notice of any refund due to the tenant's last known address, and if the tenant does not respond within 60 days you may keep the deposit. The duty runs on that notice-and-response clock rather than a hard deadline.
What itemization does Tennessee require?
You must inspect the unit, list any damage, and give the tenant a chance to inspect before deducting. The itemized list and the tenant's inspection right are the core requirements even without a day-count.
What is the wrongful-withholding exposure in Tennessee?
Forfeit right to withhold (no separate account). A landlord who does not maintain the required separate account, or skips the inspection and itemization steps, loses the right to keep any part of the deposit and owes it back in full. Here the separate-account rule, not a missed deadline, is the usual failure.