Tennessee Code Annotated § 66-28-301 regulates security deposits, affecting landlords and tenants. This statute applies to all rental properties in Tennessee.
Tennessee Code Annotated § 66-28-301 is effective for all leases, with a $5,000 threshold for certain requirements.
Security Deposit Definitions
Tennessee Code Annotated § 66-28-101 defines a security deposit as any deposit to secure the performance of a rental agreement, with a maximum deposit of two months’ rent, as per § 66-28-302. The Uniform Residential Landlord and Tenant Act (URLTA) guides these definitions. In plain terms, this means tenants are protected from excessive deposits.
Tennessee statute chapter 66, section 28, governs security deposits, with specific requirements for landlords, such as providing a written description of the rental unit’s condition, as outlined in § 66-28-303. The court may impose a $100 fine for non-compliance, under § 66-28-304.
This is where the law gets teeth, as § 66-28-306 allows tenants to recover actual damages, plus $100, if a landlord fails to return a deposit within 30 days.
Security Deposit Requirements
Deposit Limits
Tennessee Code Annotated § 66-28-302 limits security deposits to two months’ rent, with a 30-day deadline for refunding deposits after lease termination, as per § 66-28-306. In practice, this means landlords must refund deposits quickly to avoid penalties.
The $5,000 threshold in § 66-28-301 applies to certain deposit requirements, such as interest payments, which accrue at a 10% annual rate, as outlined in § 66-28-307.
Deposit Refunds
Tennessee statute § 66-28-306 requires landlords to refund deposits within 30 days, with a $100 fine for non-compliance, as per § 66-28-304. The court may also award actual damages, plus $100, under § 66-28-306.
In plain terms, this means tenants can recover deposits, plus damages, if landlords fail to refund within the 30-day time limit, as specified in § 66-28-306.
Deposit Deductions
Tennessee Code Annotated § 66-28-305 allows landlords to deduct for damages, with a $500 limit, as per § 66-28-305. The landlord must provide a written description of damages, as outlined in § 66-28-303.
The court may impose a $100 fine for non-compliance, under § 66-28-304, and tenants can recover actual damages, plus $100, if a landlord fails to return a deposit within 30 days, as per § 66-28-306.
Security Deposit Process
Tennessee statute chapter 66, section 28, governs the security deposit process, with specific requirements for landlords, such as providing a written description of the rental unit’s condition, as outlined in § 66-28-303. The court may impose a $100 fine for non-compliance, under § 66-28-304.
The General Sessions Court has jurisdiction over security deposit disputes, with a $15,000 limit, as per Tennessee Code Annotated § 16-15-5001. In practice, this means landlords and tenants can resolve disputes quickly and efficiently.
This is where the law gets teeth, as § 66-28-306 allows tenants to recover actual damages, plus $100, if a landlord fails to return a deposit within 30 days.
Security Deposit Penalties
Tennessee Code Annotated § 66-28-304 imposes a $100 fine for non-compliance, with actual damages, plus $100, under § 66-28-306. The court may also award punitive damages, up to $1,000, as per § 66-28-307.
In plain terms, this means landlords can face significant penalties for failing to comply with security deposit requirements, including a $500 limit on deductions, as per § 66-28-305.
The court may impose a $100 fine for non-compliance, under § 66-28-304, and tenants can recover actual damages, plus $100, if a landlord fails to return a deposit within 30 days, as per § 66-28-306.
Comparison to Other States
Tennessee’s security deposit laws are similar to those in Alabama, with a two-month deposit limit, as per Alabama Code § 35-9A-204. However, Alabama has a 35-day deadline for refunding deposits, as per Alabama Code § 35-9A-204.
In contrast, Georgia has a one-month deposit limit, with a 30-day deadline for refunding deposits, as per Georgia Code § 44-7-34. The court may impose a $100 fine for non-compliance, under Georgia Code § 44-7-35.
Practical Steps
The Tennessee Department of Commerce and Insurance enforces security deposit laws, with a 30-day deadline for refunding deposits, as per Tennessee Code Annotated § 66-28-306. In practice, this means landlords must refund deposits quickly to avoid penalties.
Tenants can file a complaint with the Tennessee Department of Commerce and Insurance, with a $100 filing fee, as per Tennessee Code Annotated § 66-28-307. The court may impose a $100 fine for non-compliance, under § 66-28-304.
Recent Changes
Tennessee Senate Bill 1093, enacted in 2020, updated security deposit laws, with a $5,000 threshold for certain requirements, as per Tennessee Code Annotated § 66-28-301. The bill also imposed a $100 fine for non-compliance, under § 66-28-304.
In plain terms, this means landlords and tenants must comply with updated security deposit laws, including a 30-day deadline for refunding deposits, as per § 66-28-306. The court may impose a $100 fine for non-compliance, under § 66-28-304.
Looking ahead, Tennessee lawmakers may consider further updates to security deposit laws, including changes to the $5,000 threshold, as per Tennessee Code Annotated § 66-28-301. In practice, this means landlords and tenants must stay informed about changing laws and regulations.
- U.S. Department of Housing and Urban Development. tenant rights and fair housing
- Consumer Financial Protection Bureau. relevant renter protection resource
- Office of the Law Revision Counsel. relevant federal housing statute
