State law guide · Checked November 14, 2026

Tennessee landlord rules: late fees, deposits and rent increases

Tennessee caps late fees at 10% of the rent past due and sets no limit on deposit size. These rules sit in the Uniform Residential Landlord and Tenant Act, which covers counties with a population of more than 75,000 by the 2010 census. Here is what Title 66, chapter 28 says, with the section for each rule.

Late fees in Tennessee

Limit

10% of the amount of rent past due. The limit covers any charge or fee, however described, for late payment. Tenn. Code Ann. § 66-28-201(d)

Grace period

Five days, beginning the day the rent was due. If day five falls on a Sunday or legal holiday, no fee applies when the rent is paid the next business day. Tenn. Code Ann. § 66-28-201(d)

Other conditions

None in the statute beyond the limit and grace period. The statute doesn't say the fee must be written into the lease or be reasonable. Tenn. Code Ann. § 66-28-201(d)

Security deposits in Tennessee

Maximum deposit

The statute sets no limit. Tenn. Code Ann. § 66-28-301

Return deadline

The statute sets no fixed deadline. When a tenant leaves owing no rent and is due a refund, the landlord sends notice of the amount to the tenant's last known address. If the tenant doesn't respond within 60 days of the notice being sent, the landlord may keep the deposit. Damage found after the inspection counts if it is discovered within 30 days after move-out or 7 days after a new tenant takes possession, whichever is earlier. Tenn. Code Ann. § 66-28-301(f), (g)

Itemized deductions

A comprehensive listing of any presently ascertainable damage, with the estimated dollar cost of repair, compiled at the move-out inspection. The inspection happens on the day the tenant completely moves out or within four calendar days. Landlord and tenant inspect together and both sign the listing. If the tenant isn't there, the landlord may compile it alone and sends a written copy by certificate of mailing when the tenant asks in writing. The statute sets no number of days for delivering the listing. Tenn. Code Ann. § 66-28-301(b)

Interest

The statute doesn't require it. Tenn. Code Ann. § 66-28-301

How it's held

In an account used just for security deposits, at a regulated bank or other lending institution. The landlord tells the tenant where the account is when the tenant signs the lease and pays the deposit. The account number doesn't have to be given. Tenn. Code Ann. § 66-28-301(a), (h)

Penalty

A landlord can't keep any part of the deposit if it wasn't held in the required account and no damage listing was provided. The statute sets no multiplier. A tenant's dispute is limited to the items the tenant dissented from. Tenn. Code Ann. § 66-28-301(c), (d)

Rent increases in Tennessee

Notice to raise rent

No statute sets a notice period for a rent increase. The closest rule covers ending a month-to-month tenancy: written notice at least 30 days before the periodic rental date. Check your lease for its own notice term. Tenn. Code Ann. § 66-28-512(b)

Statewide cap

None in the statute. Tenn. Code Ann. ch. 28

City rent control

Not allowed. A local governmental unit may not enact, maintain or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property. Tenn. Code Ann. § 66-35-102(a)

This page covers Tennessee state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones. The rules in chapter 28 apply in counties with a population of more than 75,000 by the 2010 federal census (§ 66-28-102(a)). In those counties the chapter also preempts local landlord and tenant regulation (§ 66-28-102(e)). Check whether your county is covered. Tennessee's official code site has no link to a single section, so each link above opens the code's front page. Search the section number there.

Questions landlords ask

Free templates you can use in Tennessee

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

• Rent increase letter kit: increase notice, renewal offer, pricing worksheet and delivery log.
• Late rent notice kit: friendly reminder, past-due notice, payment plan and delivery log.
• Security deposit return kit: itemized return letter, wear-and-tear guide and move-out checklist.
• Move-in kit: inspection checklist and deposit receipt, signed by the tenant.
• Rent ledger: running tenant balances and printable statements.

This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (Tennessee Code, title 66, chapter 28, § 66-28-102 (where the act applies)) or talk to a local attorney before you act.