Tennessee Security Deposit Rules (2026): The Move-Out Inspection, the Damage List and the 60-Day Notice

Tennessee’s security deposit rules are different from most states’. They live in the Uniform Residential Landlord and Tenant Act, which applies only in the state’s larger counties, including Hamilton County (Chattanooga) and Bradley County (Cleveland). Instead of one simple refund deadline, the act centers on a separate deposit account, a move-out inspection and a signed list of damages. This guide explains how it works in plain English, what happens in counties the act doesn’t cover, and how to leave a rental so cleaning costs you nothing.

Tennessee deposit rules at a glance

• Where the act applies: counties above the population threshold in the act (T.C.A. 66-28-102), including Hamilton and Bradley Counties; check whether it applies in yours
• Separate account: the deposit must be kept in an account used only for deposits, at a regulated bank, and you must be told where it is
• Move-out inspection: you can ask to be present when the landlord inspects the home and lists damage
• Damage list: damage is listed with estimated repair costs, for you to sign or dispute in writing, item by item
• Refund notice: the landlord sends written notice of any refund; if you don’t respond within 60 days, the balance can be kept
• Deposit cap: none set by the statute

This is general information, not legal advice. The timing rules are detailed and laws change, so check the current statute (T.C.A. 66-28-301) or ask a lawyer about your situation.

Does the act apply to you?

The act covers counties above a population threshold set in the statute, measured by a fixed census. Hamilton and Bradley Counties are covered. Several smaller counties in the region, such as Marion, Sequatchie, Grundy and Rhea, may not be. Where the act doesn’t apply, your lease and general contract law decide what happens to the deposit, so read the deposit section of your lease carefully and keep the same records you would anywhere else.

The separate deposit account

Under the act, a landlord must keep deposits in an account used only for that purpose at a state or federally regulated bank, and tell you where the account is. A landlord who fails to do this can lose the right to keep any part of the deposit. It is worth checking your lease or asking in writing where your deposit is held.

The move-out inspection

The inspection is where deductions are decided. You can ask to be present when the landlord inspects the home after you move out, and the landlord compiles a list of damage with an estimated cost for each item. If you agree, you sign it. If you disagree with any item, you write down your objection to that item and sign that statement. Your later claim is generally limited to the items you disputed in writing, so read the list carefully on the day.

If you leave without notice, abandon the home or don’t respond to the landlord’s notice, you can lose the right to be present. Give notice in writing as your lease requires and ask for an inspection date.

What can and cannot be deducted

Deductions cover unpaid rent, damage beyond normal wear and tear, and other charges your lease expressly allows. Cleaning disputes are common, so understand where the line usually falls:

Common Tennessee move-out charges: usually allowed and usually not

Usually deductible	Usually normal wear and tear
A greasy oven or a fridge left with food in it	Faded paint and light scuffs
Mildew left to spread on grout, caulk and basement walls	Carpet worn along walking paths
Red clay or pet stains ground into carpet	A few small nail holes
Trash, furniture or belongings left behind	Minor wear on blinds and handles
Holes in walls, broken blinds, pet damage	Fixtures that aged with normal use

The refund notice and the 60 days

When money is due back to you, the landlord sends written notice to your last known or forwarding address. If you don’t respond within 60 days, the landlord may keep the balance. That makes your forwarding address one of the most important things you give the landlord: put it in writing, keep a copy, and watch your mail and email after you move.

Reading the damage list

Each item on the damage list should name what is damaged and give an estimated repair or cleaning cost. Read it slowly at the inspection rather than signing in a hurry. Compare each line with your move-in photos and list. A line that just says “cleaning” with a round number is worth questioning politely: ask which rooms and what was dirty. Check carpet, paint and flooring charges against normal wear and tear; a landlord shouldn’t charge you to replace something that simply wore out with age.

Roommates, early move-outs and pets

When several people share a lease, the deposit is normally returned once, when the whole tenancy ends, and roommates settle shares between themselves. If you leave early, the landlord can usually apply the deposit to rent owed under the lease. If you have pets, expect the inspection to focus on hair, odors, stained carpet and scratched doors and floors; a careful pet clean, with carpets extracted, is the best protection.

Start at move-in

Because deductions are decided by comparing the home at move-out with its condition when you moved in, a good move-in record is your best protection. Walk through before you unpack, send the landlord a written list of every stain, scratch and broken item, and take dated photos of every room, including inside the oven, fridge and cabinets and any basement or lower level.

Keep a record that speaks for itself

Shoot each room from the doorway at move-out, then close-ups of the kitchen, bathrooms, floors and any damage. Keep the lease, your move-in list, your notice, your forwarding address letter, the signed damage list, receipts for any cleaning or repairs and every message with the landlord in one folder. A receipt from a professional move-out clean, with the checklist it followed, is useful evidence if a cleaning charge is disputed.

If your deposit isn’t returned

Write to the landlord first, referring to the inspection, the damage list and your written objections, and give your forwarding address again. Keep copies of everything. If that fails, General Sessions Court in your county hears most deposit disputes. Legal Aid of East Tennessee and local bar referral services can point you to help.

A move-out plan that protects your deposit

• At move-in: photograph every room and send the landlord a written list of existing damage
• Two to three weeks out: give notice as your lease requires, ask for an inspection date and book your clean
• The day before: defrost and empty the fridge and freezer
• Moving day: remove everything, including closets, the basement, the garage and the deck
• Cleaning day: kitchen, bathrooms, mildew, fans and vents, baseboards and floors, then photograph each room
• Inspection: attend, read the damage list item by item, and dispute anything you disagree with in writing

Our move-out cleaning starts at $190 and follows the checklist Tennessee landlords use, with the price confirmed before you book. See what Tennessee move-out cleans actually cost, find move-out cleaning in your Tennessee town or get a free quote.