What is the security deposit limit in Tennessee?
Tennessee law sets no maximum amount for a security deposit. In URLTA counties, landlords must deposit all security funds in a separate bank account used only for that purpose (§ 66-28-301(a)). At move-in, landlord and tenant must jointly inspect the unit and compile an itemized listing of any existing damage that could form the basis of a future deposit charge (§ 66-28-301(b)); a landlord who fails both to maintain the separate account and to provide that move-in listing forfeits the right to retain any part of the deposit (§ 66-28-301(c)). If the tenant vacates owing rent or other amounts, the landlord may apply the deposit to that debt (§ 66-28-301(e)). If the tenant vacates owing nothing and a refund is due, the landlord must send notice of the refund amount to the tenant's last known or reasonably determinable address; if the tenant does not respond within 60 days, the landlord may retain the funds (§ 66-28-301(f)). Separately, a landlord may charge for newly discovered physical damage only if it is discovered before the earlier of 30 days after the tenant vacates or 7 days after a new tenant takes possession (§ 66-28-301(g)) — that window caps new damage claims and is not a deadline for returning the deposit. The statute sets no fixed number of days by which the refund notice itself must be sent.