Tennessee Lease Agreement

 

Understanding Tennessee Lease Agreement Requirements

State Legal Framework

Tennessee landlord tenant law provides the foundation for all residential rental agreements in the state. The Tennessee Uniform Residential Landlord and Tenant Act (Tennessee Code Annotated Title 66, Chapter 28) establishes comprehensive rights and responsibilities for both parties. Tennessee maintains a landlord-friendly legal environment with efficient procedures while providing essential tenant protections. The state does not impose rent control, allowing landlords significant flexibility in setting rental rates and lease terms. The Tennessee rental lease agreement becomes enforceable when both parties sign the document, creating mutual obligations that govern the entire landlord-tenant relationship under Tennessee’s Uniform Residential Landlord and Tenant Act.

Written Agreement Standards

Tennessee does not legally require written lease agreements for tenancies under one year. However, creating a written residential lease agreement Tennessee landlords can reference provides essential documentation and legal protection. Written agreements prevent disputes by establishing explicit terms both parties acknowledge and accept.

Essential Elements of a Tennessee Lease Agreement

Parties and Property Identification

Complete Party Information Every Tennessee lease agreement template should identify all parties involved in the rental arrangement. Required information includes:

• Full legal names of all landlords or property managers
• Full legal names of all adult tenants
• Complete property address including unit numbers
• Legal property description when applicable

Accurate identification prevents confusion about who holds rights and responsibilities under the agreement.

Lease Term and Duration

Fixed-Term Agreements Fixed-term leases establish specific start and end dates for tenancies. Most Tennessee rental contracts run for 12-month periods, though landlords can create agreements for any duration. Fixed-term leases provide stability for both parties and establish clear expectations about tenancy length.

Month-to-Month Arrangements Month-to-month rental agreements offer flexibility for landlords and tenants who prefer shorter commitments. These arrangements automatically renew each month until either party provides proper termination notice. Tennessee requires 30 days written notice to terminate month-to-month tenancies.

Rent Payment Terms

Payment Obligations Tennessee lease agreements must clearly state rent payment requirements including:

• Monthly rent amount
• Payment due date
• Accepted payment methods
• Where tenants should submit payments
• Grace period provisions

Tennessee requires landlords to provide a five-day grace period for rent payments. Rent cannot be considered late for purposes of late fees until after this grace period expires.

Late Fee Provisions Tennessee limits late fees to 10% of the amount of rent past due. Late fees cannot be charged until after the five-day grace period. Late fee policies should appear clearly in the rental agreement Tennessee tenants receive. Fees exceeding the statutory limit are unenforceable.

Security Deposit Requirements in Tennessee

Deposit Limits and Handling

No Statutory Cap Tennessee places no legal limit on security deposit amounts. Landlords can request deposits based on property value, rental rates, and risk assessment. Most landlords collect deposits equal to one or two months rent, though higher amounts are legally permissible.

No Separate Account Requirements Tennessee does not require landlords to hold security deposits in separate escrow accounts or pay interest on deposited funds. Landlords have flexibility in managing deposit funds while maintaining proper records.

Move-In Inspection

Tennessee requires landlords to conduct a move-in inspection. Landlords must:

• Inspect the premises within three days before the tenant moves in
• Prepare a comprehensive written record of the condition
• Provide a copy to the tenant
• Both parties should sign the inspection report

This inspection protects both parties during security deposit disputes at move-out.

Return Procedures

30-Day Timeline Tennessee landlords must return security deposits within 30 days after tenants vacate properties. However, if the landlord makes a written request for the tenant’s forwarding address and the tenant fails to provide it, the landlord is not obligated to return the deposit until the tenant provides an address.

Itemization Requirements If landlords withhold any portion of the deposit, they must provide a written itemized statement of deductions describing:

• Each item of damage claimed
• Actual cost of repairs
• Any unpaid rent or charges

Allowable Deductions Landlords can deduct from security deposits for:

• Unpaid rent
• Damage beyond normal wear and tear
• Costs to restore property to move-in condition
• Cleaning costs
• Unpaid utility charges
• Other charges authorized in the lease agreement

Providing itemized deduction statements with remaining deposit balances prevents tenant disputes.

Wrongful Withholding Penalties

Tennessee landlords who wrongfully withhold security deposits may face legal action from tenants. If a landlord fails to return the deposit or provide proper itemization within 30 days and acts in bad faith, the tenant may recover the deposit amount owed. Landlords should document property condition thoroughly and provide timely itemized statements.

Required Disclosures for Tennessee Rental Agreements

Lead-Based Paint Disclosure

Federal law mandates lead-based paint disclosures for all rental properties built before 1978. Tennessee landlords must provide:

• Written disclosure of known lead-based paint presence
• EPA pamphlet “Protect Your Family from Lead in Your Home”
• Ten-day opportunity for lead inspection
• Signed acknowledgment of disclosure receipt

Failure to provide proper lead disclosures exposes landlords to significant federal penalties.

Owner/Agent Identification

Tennessee requires landlords to disclose:

• Name and address of the property owner
• Name and address of any person authorized to manage the property
• Name and address of person authorized to receive notices and demands

This information must be provided in the lease agreement or separately at the beginning of tenancy.

Move-In Inspection Disclosure

Tennessee requires landlords to provide the move-in inspection report documenting the condition of the premises. This must be completed within three days before the tenant moves in.

Landlord Liens Disclosure

Tennessee requires landlords to include a statement in the lease if the landlord intends to enforce a landlord’s lien on the tenant’s personal property for unpaid rent.

Mold Disclosure

Tennessee does not mandate specific mold disclosures. However, landlords should consider:

• Disclosing known mold problems as a best practice
• Addressing mold prevention in lease terms
• Responding promptly to tenant mold reports

Given Tennessee’s humid climate, mold prevention is particularly important.

Bed Bug Disclosure

Tennessee does not require specific bed bug disclosures. Best practices include:

• Disclosing known infestation history
• Establishing reporting procedures in lease terms
• Clarifying treatment responsibilities

Flood Zone Disclosure

While not strictly required, Tennessee landlords should consider disclosing flood zone status given the state’s flooding history, particularly in areas near rivers and in flood-prone regions.

Landlord and Tenant Rights Under Tennessee Law

Landlord Obligations

Warranty of Habitability Tennessee imposes implied warranty of habitability requirements on landlords under URLTA. Required maintenance includes:

• Compliance with all applicable building and housing codes materially affecting health and safety
• Making all repairs necessary to keep premises fit and habitable
• Keeping common areas clean and safe
• Maintaining electrical, plumbing, sanitary, heating, ventilating, and air conditioning systems
• Providing running water and reasonable amounts of hot water
• Providing adequate heat and air conditioning
• Maintaining working smoke detectors and carbon monoxide detectors
• Providing garbage receptacles and arranging for removal
• Extermination of pest infestations (excluding single-family residences unless infestation existed at move-in)
• Maintaining weathertight conditions
• Providing secure locks on exterior doors

Landlords must make repairs within 14 days after receiving written notice from tenants for non-emergency repairs.

Property Access Rights Tennessee requires landlords to provide at least 24 hours advance notice before entering rental properties. Entry must occur at reasonable times for legitimate purposes including:

• Inspections
• Repairs and maintenance
• Showing property to prospective tenants or buyers
• Emergencies (no notice required)

Landlords cannot abuse the right of access or use it to harass tenants.

Tenant Responsibilities

Property Care Standards Tenants must maintain rental units according to Tennessee statutory requirements including:

• Keeping the property clean and sanitary
• Using electrical, plumbing, heating, and other systems properly
• Disposing of garbage in a clean and sanitary manner
• Not deliberately or negligently destroying property
• Not disturbing neighbors’ peaceful enjoyment
• Complying with housing and building codes
• Allowing reasonable landlord access with proper notice
• Maintaining smoke and carbon monoxide detectors (battery replacement)

Lease Termination and Eviction Procedures

Voluntary Termination

Notice Requirements Tennessee termination notice requirements depend on lease type:

• Fixed-term leases end automatically on specified dates
• Month-to-month tenancies require 30 days written notice
• Week-to-week tenancies require 10 days written notice

Including clear termination procedures in lease agreements prevents misunderstandings about proper notice protocols.

Eviction Processes

Tennessee uses detainer warrants for evictions, providing relatively efficient procedures.

Nonpayment of Rent Tennessee landlords can begin eviction proceedings when tenants fail to pay rent. The process requires:

• 14-day notice to pay rent or vacate (after the five-day grace period)
• Filing detainer warrant if tenant fails to comply
• Court hearing and judgment
• Writ of possession for physical removal

Lease Violations Landlords can pursue eviction for material lease violations:

• 14-day notice to cure for most violations
• If violation is not cured, landlord may terminate with 14-day notice
• Court filing and proceedings

Immediate Termination For certain serious violations, Tennessee allows termination with shorter notice:

• Illegal drug activity (three-day notice)
• Criminal activity threatening health or safety
• Repeat violations within six months (14-day notice without opportunity to cure)

Retaliatory Eviction Protections

Tennessee prohibits retaliatory evictions. Landlords cannot evict or retaliate against tenants for:

• Complaining about code violations to appropriate governmental agencies
• Exercising legal rights under URLTA
• Joining or organizing tenant unions

Retaliatory actions within one year of protected activity may be presumed retaliatory.

Creating an Effective Tennessee Lease Agreement

Documentation Best Practices

Comprehensive Terms Strong Tennessee lease agreements include provisions addressing:

• Pet policies and deposits
• Guest and occupancy limits
• Maintenance responsibilities
• Utility payment assignments
• Parking and storage rules
• Noise and conduct standards
• Renewal and termination procedures
• Entry notice procedures
• Move-in inspection acknowledgment
• Landlord lien disclosure (if applicable)
• Tornado and severe weather provisions

Professional Templates Using a Tennessee lease agreement template ensures contracts include all legally required elements. Given Tennessee’s move-in inspection requirement and late fee cap, professional templates help landlords maintain compliance.

Tenant Screening Integration

Application Procedures Thorough tenant screening before lease signing helps landlords select reliable tenants. Screening should include:

• Credit history review
• Employment and income verification
• Rental history and references
• Background checks where permitted

Tennessee does not prohibit source of income discrimination statewide. Documenting screening criteria and applying standards consistently protects landlords from discrimination claims.

Tennessee-Specific Considerations

Nashville Metro Area

The Nashville metropolitan area dominates Tennessee’s rental market:

• State’s largest city with explosive growth
• Music, entertainment, and healthcare industries
• Vanderbilt University and Belmont University student markets
• High rental demand and rising rates
• Strong job growth attracting new residents
• Diverse neighborhoods from downtown to suburbs
• Short-term rental regulations

Memphis Metro Area

Memphis presents distinct rental dynamics:

• Second largest city with diverse rental stock
• University of Memphis student market
• FedEx and logistics industry employment
• Healthcare sector growth
• Historic neighborhoods and urban revitalization
• Cross-border considerations (Mississippi, Arkansas)

Knoxville Area

Knoxville offers unique market characteristics:

• University of Tennessee dominates student rental market
• Oak Ridge National Laboratory employment
• Smoky Mountains tourism proximity
• Growing tech and healthcare sectors

Chattanooga Area

Chattanooga has experienced significant growth:

• Growing tech industry (“Gig City” fiber internet)
• University of Tennessee at Chattanooga
• Outdoor recreation tourism
• Revitalized downtown

Tornado and Severe Weather Provisions

Tennessee lies in an active tornado region, creating important considerations:

• Storm shelter information and access
• Tornado safety provisions in lease
• Emergency notification procedures
• Insurance requirements and recommendations
• Property damage provisions for severe weather
• Tenant responsibilities during tornado warnings
• Lease provisions for tornado damage

Flooding Considerations

Tennessee experiences significant flooding:

• Nashville and Middle Tennessee flood risks
• Mississippi River flooding (Memphis area)
• Tennessee River flooding
• Flash flood risks
• Disclosure of flood zone locations recommended
• Flood insurance requirements in certain areas

College Town Rentals

Tennessee has significant college student rental markets:

• University of Tennessee (Knoxville)
• Vanderbilt University (Nashville)
• University of Memphis
• Middle Tennessee State University (Murfreesboro)
• Tennessee State University (Nashville)
• Belmont University (Nashville)
• East Tennessee State University (Johnson City)
• University of Tennessee at Chattanooga

Landlords in college areas should consider:

• Academic year lease terms
• Parental guarantor requirements
• Move-in/move-out timing around semesters
• Multiple roommate arrangements
• Summer subletting provisions
• Game day considerations (especially UT)

Military Tenant Considerations

Tennessee does not have major active military installations but:

• Servicemembers Civil Relief Act (SCRA) protections apply
• Tennessee National Guard activations
• Arnold Air Force Base (Tullahoma area)
• Naval Support Activity Mid-South (Millington)
• Eviction protections during active duty

Short-Term and Vacation Rentals

Tennessee regulates short-term rentals at local levels:

• Nashville short-term rental regulations (significant)
• Memphis vacation rental requirements
• Gatlinburg/Pigeon Forge mountain rentals
• Local registration and licensing varies
• Hotel occupancy tax obligations
• HOA restrictions

Smoky Mountains and Tourist Areas

Eastern Tennessee tourism creates rental opportunities:

• Gatlinburg and Pigeon Forge vacation rentals
• Sevierville area growth
• Seasonal demand patterns
• Short-term rental regulations
• High tourism season premiums

Music City Tourism Impact

Nashville’s entertainment industry affects rentals:

• High demand from tourism workers
• Short-term rental market
• Event-driven pricing opportunities
• Broadway and downtown worker housing

HOA and Condominium Rentals

Many Tennessee rentals occur within homeowner associations:

• Association approval requirements
• Tenant compliance with community rules
• Rental restrictions and caps
• Application processes and fees
• Common area usage rules

Landlords should verify HOA rental policies before marketing properties.

Manufactured Housing

Tennessee has significant manufactured housing inventory:

• Specific requirements for mobile home communities
• Lot rental agreement distinctions
• Community rules and enforcement
• Title and registration requirements
• Tornado safety considerations

Humidity and Climate Considerations

Tennessee’s humid subtropical climate creates concerns:

• Mold prevention lease provisions
• HVAC maintenance requirements
• Tenant responsibilities for ventilation
• Prompt response to moisture issues
• Air conditioning essential for habitability
• Pest control provisions

Rural Property Considerations

Rural Tennessee has specific considerations:

• Farm and ranch housing
• Well water and septic system disclosures
• Agricultural property provisions
• Remote property access
• Seasonal rental patterns in tourist areas

Cannabis Considerations

Tennessee has not legalized cannabis:

• Cannabis remains illegal for recreational and medical use
• Landlords can prohibit all cannabis use
• Standard drug-free housing provisions apply
• No medical marijuana program (CBD only)

Source of Income Considerations

Tennessee does not prohibit source of income discrimination statewide:

• Landlords may decline Housing Choice Vouchers
• No state mandate to accept Section 8
• Individual landlord discretion applies

Historic Properties

Tennessee has significant historic housing stock:

• Nashville historic districts
• Memphis historic neighborhoods
• Historic preservation requirements in some areas
• Older electrical and plumbing systems
• Lead paint prevalence in older buildings

Security Deposit

TOPIC	RULE
Security Deposit Maximum:	No designated maximum security deposit. Tenn. Code § 66-28-301
Security Deposit Interest:	No statute.
Separate Security Deposit Bank Account:	A landlord of residential property requiring security deposits prior to occupancy is required to deposit all tenants’ security deposits in an account used only for that purpose. Tenn. Code § 66-28-301
Non-refundable fees:	No statute.
Pet Deposits and Additional Fees:	No statute.
Deadline for Returning Security Deposit:	A landlord must return the security deposit within 30 days after the tenant vacated the premises. Tenn. Code § 66-28-301
Permitted Uses of the Deposit:	No statute.
Security Deposit can be Withheld:	No landlord shall be entitled to retain any portion of a security deposit if the security deposit was not deposited in an account as required by subsection (a) and a listing of damages is not provided as required by subsection (b). Tenn. Code § 66-28-301
Require Written Description/Itemized List of Damages and Charges:	A landlord is required to inspect the property and make a detailed list of any damages beyond normal wear and tear. Tenants have the right to a mutual inspection. Tenn. Code § 66-28-301
Receipt of Security Deposit:	No statute.
Record Keeping of Deposit Withholdings:	No statute.
Failure to Comply:	No statute.

Lease, Rent & Fees

TOPIC	RULE
Rent is Due:	Unless otherwise agreed by both parties, rent is payable at the beginning of any term of one (1) month or less and otherwise in equal monthly installments at the beginning of each month. Upon agreement, rent shall be uniformly apportionable from day to day. Tenn. Code § 66-28-201
Payment Methods:	Tenants are able to pay rent in various methods, but must be approved by the landlord.
Rent Increase Notice:	No statute.
Late Fees:	A landlord is permitted to charge a fee for late payment of rent beginning after the fifth day that rent is due. It shall not exceed ten percent (10%) of the amount of rent past due. Tenn. Code § 66-28-201
Application Fees:	There are no specific limits on the amount landlords can charge for rental application fees in Tennessee.
Prepaid Rent:	No statute.
Returned Check Fees:	The landlord is authorized to assess a handling charge against the check maker in an amount not to exceed $30.00. Tenn. Code § 47-29-102
Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.):	Tenants are permitted to withhold rent if the landlord fails to make necessary repairs or provide essential services. Tenn. Code § 66-28-502
Tenant Allowed to Repair and Deduct Rent:	Tenants are permitted to pay for necessary repairs and deduct the cost of future rent. Tenants should document all repairs and receipts to provide to their landlord for verification. Tenn. Code § 66-28-502
Self-Help Evictions:	Self-help evictions are illegal. They are considered disorderly conduct. Landlords engaging in self-help evictions can be sued by the tenant. Tenn. Code § 66-28-514
Landlord Allowed to Recover Court and Attorney’s Fees:	The landlord may bring an action for possession, back rent and reasonable attorney’s fees as well as any other damages provided for in the lease if a tenant remains in possession without the landlord’s consent after expiration of the term of the rental agreement or its termination. Tenn. Code § 66-28-512
Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent:	If the tenant abandons the dwelling unit, the landlord shall use reasonable efforts to re rent the dwelling unit at a fair rental. Tenn. Code § 66-28-507

Notices and Entry

TOPIC	RULE
Notice to Terminate Tenancy:	No statute.
Notice to Terminate a Periodic Lease – Month-to-Month:	The landlord or the tenant may terminate a month-to-month lease with a written notice given to the other at least thirty (30) days prior to the periodic rental date specified in the notice. Tenn. Code § 66-28-512
Notice to Terminate a Periodic Lease – Week-to-week:	The landlord or the tenant may terminate a week-to-week lease with a written notice given to the other party at least ten (10) days prior to the termination date specified in the notice. Tenn. Code § 66-28-512
Notice to Terminate Lease due to Sale of Property:	The owner must give each tenant at least two (2) months’ actual notice of such owner’s or lessor’s intent to convert such tenant’s property from a rental unit to a property for sale. Tenn. Code § 66-28-512
Notice of date/time of Move-Out Inspection:	No statute.
Notice of Termination for Nonpayment:	A landlord must give fourteen (14) days’ notice of termination of tenancy for the purpose of eviction of a residential tenant. Tenn. Code § 66-7-109
Notice for Lease Violation:	A landlord must give thirty (30) days’ notice of termination of tenancy for the purpose of eviction of a residential tenant for a lease violation. Tenn. Code § 66-7-109
Required Notice before Entry:	No statute, but 24 hours is recommended.
Entry Allowed with Notice for Maintenance and Repairs:	The tenant shall not withhold consent to the landlord to enter onto the premises, including entering into the dwelling unit, in order to inspect the premises, make necessary or agreed repairs, or improvements, supply necessary or agreed services, or exhibit the premises to prospective or actual purchasers, mortgagees, workers or contractors. Tenn. Code § 66-28-403
Emergency Entry Allowed without Notice:	The landlord may enter the premises without consent of the tenant in case of emergency. Tenn. Code § 66-28-403
Entry Allowed During Tenant’s Extended Absence:	During any absence of the tenant for more than seven (7) days, the landlord is permitted to enter the dwelling unit at times reasonably necessary. Tenn. Code § 66-28-507
Entry Allowed with Notice for Showing the Property:	The tenant shall not withhold consent to the landlord to enter onto the premises, including entering into the dwelling unit, in order to exhibit the premises to prospective or actual purchasers, mortgagees, workers or contractors. Tenn. Code § 66-28-403
Notice to Tenants for Pesticide Use:	No statute.
Lockouts Allowed:	Lockouts are not permitted.
Utility Shut-offs Allowed:	If a rental lease agreement states that the tenant must have utility services transferred into their name(s), and the tenant(s) fails to do so within three (3) days of occupying the rental property, the landlord has the right to disconnect the utilities, provided that the utility services are currently in the landlord’s name. Tenn. Code § 66-28-521
Electronic Notices Allowed:	no

Disclosures

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Protecting Your Tennessee Rental Investment

A well-drafted Tennessee rental lease agreement forms the foundation of successful property management. Given Tennessee’s move-in inspection requirement, late fee cap, and severe weather exposure, comprehensive documentation becomes essential. Clear terms addressing tornado safety, move-in condition, and security deposit procedures protect both landlord and tenant interests.

RocketRent provides Tennessee lease agreement templates designed to meet state requirements and protect landlord investments. Our platform streamlines property management with integrated tools for lease creation, rent collection, and tenant screening. Create your Tennessee rental lease agreement today and manage your properties with confidence.