Tennessee Security Deposit Return Deadline & Penalty Calculator
Thursday, November 12, 2026
Computed as 30 calendar days under T.C.A. §§ 66-28-301 – 66-28-305.
Tennessee Small Claims Court cap: $25,000 — eligible for Small Claims Court filing.
Tennessee Security Deposit Rules at a Glance (T.C.A. §§ 66-28-301 – 66-28-305)
30 calendar days after the tenant vacates or abandons the premises (or 7 calendar days after a new tenant takes possession) under T.C.A. § 66-28-301. The landlord must provide an itemized list of damages and mail any refund check to the tenant's last known address.
| Deadline (No Deductions) | 30 calendar days |
|---|---|
| Deadline (With Itemized Deductions) | 30 calendar days |
| Maximum Deposit Cap | No statewide statutory limit under the Tennessee Uniform Residential Landlord and Tenant Act (URLTA); customary deposit is 1 to 2 months' rent. |
| Bad-Faith / Late Penalty | Under T.C.A. § 66-28-301(g), failure to hold deposits in a separate account or failure to provide proper move-out notices forfeits the landlord's right to retain deposit funds. If the landlord fails to return the deposit upon request, the tenant can recover the deposit plus punitive damages of up to twice the amount wrongfully withheld and attorney's fees. |
| Deposit Interest Rule | Landlords are required to hold deposits in a dedicated financial institution account used exclusively for security deposits (T.C.A. § 66-28-301(a)), but are not obligated to pay interest to the tenant. |
| Small Claims Court Limit | $25,000 |
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Key Tennessee Statutory Nuances & Documentation Rules
- County-Based URLTA Application: The Tennessee URLTA applies to counties with populations over 75,000 (including Shelby, Davidson, Knox, Hamilton, Rutherford, Williamson); in rural non-URLTA counties, common law and lease terms govern.
- Move-Out Inspection Notice (§ 66-28-301(b)): The landlord must give written notice of the right to be present at the move-out inspection; if the landlord fails to conduct an inspection after notice, they forfeit damage deduction rights.
- Unclaimed Refund Check 60-Day Forfeiture (§ 66-28-301(f)): If a refund check sent by first-class mail is not cashed within 90 days, the landlord must make reasonable efforts to contact the tenant; after 60 days following notice, the funds revert to the landlord.
- Separate Escrow Account Mandatory: Failure to deposit security funds into a distinct bank account forfeits the right to make deductions for damages.
Nashville Apartment Surrender with Deductions
A tenant vacates a Nashville rental on June 30, 2026 after paying a $1,900 deposit. Under T.C.A. § 66-28-301, the landlord has 30 calendar days (until July 30, 2026) to provide an itemized damage list and mail the remaining balance. If the landlord retains $800 for repainting without sending the required notice by July 30, the landlord forfeits all claim to the deposit. In Tennessee General Sessions Court (handling civil claims up to $25,000), the tenant can recover the $800 withheld plus statutory damages up to $1,600 (2x the amount withheld) and attorney's fees.
Tennessee Security Deposit Return FAQs
What is the security deposit return deadline in Tennessee?
Under Tennessee Code Annotated (T.C.A.) § 66-28-301, the landlord must provide an itemized list of damages and mail any refund check within 30 calendar days after the tenant vacates or abandons the property, or within 7 days after a new tenant takes possession.
Does Tennessee require landlords to keep deposits in a separate account?
Yes. Under T.C.A. § 66-28-301(a), security deposits must be deposited into a separate account in a bank or financial institution used exclusively for security deposits. Failure to do so prevents the landlord from retaining any portion of the deposit.
Does Tennessee URLTA law apply in every county?
No. The Tennessee Uniform Residential Landlord and Tenant Act applies only in counties with populations exceeding 75,000 according to federal census figures (including counties containing Nashville, Memphis, Knoxville, and Chattanooga). In smaller counties, general lease contract law applies.
Can a tenant be present at the move-out inspection in Tennessee?
Yes. Under T.C.A. § 66-28-301(b), a tenant has the right to be present at the inspection unless the tenant vacated without notice, was evicted, or failed to respond to the landlord's written notice of inspection.