A landlord in Knox County, Tennessee, collects a $2,400 security deposit from a tenant whose monthly rent is $1,100. The tenant later vacates and demands a full refund. The landlord claims the deposit amount was valid because the parties agreed to it in writing. Under the Tennessee Landlord-Tenant Act, which of the following is correct?
Correct Answer
D) The deposit exceeds the statutory maximum; the Act limits security deposits to two months' rent in qualifying counties, making the permissible maximum $2,200.
Knox County exceeds the 75,000-population threshold, so the Tennessee Uniform Residential Landlord and Tenant Act applies. Under Tenn. Code Ann. § 66-28-201, landlords in qualifying counties may not require a security deposit exceeding two months' rent. With monthly rent of $1,100, the maximum permissible security deposit is $2,200 (2 × $1,100). The $2,400 deposit collected exceeds this statutory cap by $200, making it impermissible regardless of any written agreement between the parties.
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