Unlike other states, Tennessee does not limit the amount that landlords can charge when they’re collecting a security deposit. However, we recommend that you keep it to a reasonable amount. Tenants will likely be unwilling to pay a deposit that’s more than the equivalent of one month’s rent.
There are a few things you need to know when you’re collecting, holding, and returning a tenant’s security deposit.
Keep the Deposit in a Separate Account
When you collect the tenant’s deposit before he or she moves into your...