Landlord Tenant Closing Statement to Reconcile Security Deposit - Tennessee 2025

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Returning Deposits Tennessee law specifies clear timelines for landlords to return security deposits after a tenant moves out. Landlords must return the full deposit, or any remaining balance after lawful deductions, within 30 days of the lease termination and delivery of possession.
Most of your acquisition costs when acquiring a rental property are going to show up in the real estate closing statement. The closing statement is a financial instrument, not a tax document. You need to go through each line item in the statement and assign it to one of the three following tax categories: 1. Basis.
In Tennessee, landlords are required to hold security deposits in a separate bank account used only for that purpose. The deposits cannot be commingled with the landlords personal funds or other accounts. Tennessee law states that the landlord shall accrue interest on all security deposits.
Landlords are responsible for general wear and tear items; youll have to pay to get the property ready for a new tenant, and that will usually include things like painting and carpet cleaning.
No, the landlord isnt allowed to charge cleaning fees unless its in the written rental agreement. Even if thats the case, landlords cannot make charges due solely to wear and tear.
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Common examples of normal wear and tear So, what things can you categorize as normal? Some examples include loose doorknobs, worn-out carpet, and minor scratches on the walls and floors. Because this type of wear is unavoidable, tenants arent responsible for this damage.
Tennessee landlords must return the tenants security deposit, or the part left, after appropriate deductions within 30 days from the tenant leaving or 60 days when the landlord never receives a response to get the refund.

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