How to Hold and Return a Security Deposit in Tennessee

Managing a Security Deposit in Tennessee

Tennessee law does not impose a limit on how much you can charge as a security deposit. Many people choose to charge the equivalent of one month's rent.

Storing the Deposit

Tennessee law states that a security deposit must be held in a bank account separate from your personal finances in a bank that operates in the state. You must notify your tenant in writing of the bank where the security deposit is being held.

Returning the Deposit

You must return your subtenant's security deposit within 60 days of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease, violations of the rental agreement, or to cover the cost of any damages to the unit that exceed normal wear and tear. You must provide your subtenant with a written, itemized list of any amount you plan to withhold from the deposit within 60 days of the end of the sublease. If the subtenant doesn't respond to this within the 60 day time frame, you may keep all of the security deposit.