Protect Rentals in Tennessee: Strong Lease Clauses Landlords Should Consider

Why Strong Lease Clauses Matter in Tennessee

Clear, well-drafted lease provisions set expectations, reduce disputes, and keep operations smooth. In Tennessee, many residential rules come from the state’s Uniform Residential Landlord and Tenant Act (URLTA) and general contract law. Because URLTA’s applicability can depend on where the property is located, always confirm coverage for your unit before finalizing your lease (Tenn. Code Ann. § 66-28-102).

Key Lease Clauses to Consider

• Rent and Late Fees. State the rent amount, due date, payment methods, and where payment must be made. Under URLTA, late fees are limited: they cannot be charged until after the statutory grace period and are capped by percentage; do not stack multiple late fees on the same late rent (Tenn. Code Ann. § 66-28-201(d)). Clarify that accepting a partial payment does not waive your rights unless you agree in writing.
• Security Deposits. Explain the amount, permissible uses (e.g., unpaid rent; damage beyond ordinary wear), where the deposit is held, inspection procedures, and how itemized deductions and any balance will be returned. URLTA includes escrow and move-out inspection requirements and sets return/accounting obligations (Tenn. Code Ann. § 66-28-301; § 66-28-305).
• Utilities and Services. Identify which utilities the tenant pays, any sub-metering/allocation method, and what happens if service is interrupted outside your control.
• Maintenance and Repairs. Allocate duties consistent with Tennessee law. Landlords must keep premises fit and comply with health and safety codes; tenants must keep the unit clean, use fixtures properly, and report problems (Tenn. Code Ann. § 66-28-304).
• Entry and Access. Set reasonable notice and hours for non-emergency entry (repairs, inspections, showings) and permit immediate entry in emergencies. Avoid overly broad access rights (Tenn. Code Ann. § 66-28-403).
• Use and Occupancy. Limit use to residential purposes, list all occupants, and set reasonable guest, sublease, and short-term rental rules. Require written consent for assignment/subleasing.
• Pets and Assistance Animals. Spell out pet rules and fees if pets are allowed. Remember, assistance animals are not “pets”; evaluate accommodation requests under federal fair housing laws and do not charge pet fees for assistance animals (24 C.F.R. § 100.204; HUD FHEO-2020-01).
• Parking and Common Areas. State parking rules and towing practices consistent with law; set expectations for common-area use.
• Renter’s Insurance. You may require tenants to carry renter’s insurance and provide proof. Note that such insurance does not reduce your legal maintenance/repair obligations.
• Prohibited Conduct and Crime-Free Language. Prohibit illegal activity and nuisances. Ensure any “crime-free” addendum is applied in a non-discriminatory way under the Fair Housing Act (42 U.S.C. § 3604).
• Mold, Smoke, and Environmental. Set smoking/vaping rules, ventilation practices, prompt reporting of leaks/moisture, and steps to mitigate mold.
• Alterations and Improvements. Require written consent for alterations and clarify fixture ownership at move-out.
• Default and Remedies. Describe notice procedures for nonpayment or material breach, any cure opportunities required by law, and remedies (possession actions; lawful charges). URLTA provides notice-and-cure frameworks, which can vary by issue and circumstances (Tenn. Code Ann. § 66-28-505).
• Attorney’s Fees and Costs. Consider a reciprocal attorney’s fees clause consistent with Tennessee law and applicable court rules.
• Rules and Regulations Addendum. Incorporate property rules by reference and reserve the right to make reasonable changes with proper notice.
• Severability and Non-Waiver. Provide that unenforceable provisions do not void the remainder and that one-time leniency is not a continuing waiver.

Clauses Tennessee Law Restricts or Prohibits

Do not include provisions that waive tenants’ basic rights or your statutory duties. Under URLTA, landlords cannot require tenants to waive rights or remedies, and cannot disclaim liability for willful misconduct or gross negligence (Tenn. Code Ann. § 66-28-203). Habitability obligations are non-waivable (§ 66-28-304). Retaliation for contacting building or health authorities is prohibited (§ 66-28-514).

Security Deposit Handling

Explain where deposits are held (separate account), the purposes for which they may be used, and the move-out inspection and itemized deduction process. URLTA prescribes escrow, inspection, and return/accounting requirements; timelines are set by statute, and compliance steps can vary by situation (Tenn. Code Ann. § 66-28-301; § 66-28-305). Make it easy for tenants to provide a forwarding address.

Notice, Delivery, and Electronic Communications

Define how notices are delivered (e.g., personal delivery, mail, or email if allowed by agreement) and when they are deemed received. If you intend to use email or electronic signatures, obtain written consent and specify addresses under Tennessee’s Uniform Electronic Transactions Act (Tenn. Code Ann. § 47-10-107).

Fair Housing and Assistance Animals

State that you follow federal, state, and local fair housing laws. Assistance animals are not pets for fee purposes; evaluate requests for reasonable accommodation under the Fair Housing Act (24 C.F.R. § 100.204) and HUD guidance (FHEO-2020-01).

Move-In/Move-Out Checklists and Condition Reports

Attach a condition checklist at move-in and update it at move-out. Accurate documentation supports lawful deposit deductions and helps prevent disputes about ordinary wear versus damage. This dovetails with URLTA’s inspection and itemization framework (§ 66-28-301).

Local Variations and URLTA Applicability

Not all Tennessee rentals are treated the same. URLTA applies as specified by statute (§ 66-28-102). Properties outside URLTA coverage may be governed by other Tennessee statutes and common law. Confirm which rules apply before finalizing your lease.

Practical Drafting Tips

• Use plain language and define key terms.
• Keep dollar amounts, due dates, and fees consistent across the lease and all addenda.
• Include legally required disclosures, such as lead-based paint for pre-1978 housing (24 C.F.R. Part 35; 40 C.F.R. Part 745, Subpart F; 42 U.S.C. § 4852d).
• Build in cure opportunities where the law requires or where it can resolve issues without litigation (§ 66-28-505).
• Provide a clear process for maintenance requests and emergencies.
• Review forms annually to catch legal updates and market changes (e.g., late fee rules or notice practices).

FAQs

Can I charge any late fee I want in Tennessee?

No. Under URLTA, late fees are subject to timing and percentage limits. Ensure your clause matches the statute and local practice.

Do I have to allow assistance animals if I have a no-pets policy?

Yes, when required as a reasonable accommodation under fair housing laws. Assistance animals are not pets and pet fees generally cannot be charged for them.

How much notice must I give before entering a unit?

Provide reasonable notice and enter at reasonable times for non-emergencies; immediate entry is allowed in emergencies.

How quickly must I return the security deposit?

Follow URLTA’s itemization and return timelines and procedures, including inspections and notice to the tenant’s forwarding address.

When to Update Your Lease

Update after statutory changes, relevant court decisions, local ordinance updates, or changes in your operations (utilities, parking, pets). Periodic legal review helps keep your lease enforceable and effective.

How Our Firm Can Help

We draft Tennessee-compliant leases tailored to your property, market, and risk tolerance; audit existing forms; and advise on notices, communications, and deposits. We also prepare addenda for pets, smoking, mold, utilities, and short-term rentals. Contact our Tennessee landlord-tenant team to review or update your lease.

Sources

• Tenn. Code Ann. § 66-28-102 (URLTA Applicability)
• Tenn. Code Ann. § 66-28-201 (Effect of rental agreement; late fees)
• Tenn. Code Ann. § 66-28-203 (Prohibited provisions)
• Tenn. Code Ann. § 66-28-304 (Habitability)
• Tenn. Code Ann. § 66-28-403 (Entry)
• Tenn. Code Ann. § 66-28-505 (Tenant noncompliance; notice/cure)
• Tenn. Code Ann. § 66-28-514 (Retaliatory conduct)
• Tenn. Code Ann. § 66-28-301 (Security deposits) and § 66-28-305 (Return and itemization)
• 24 C.F.R. § 100.204 (Reasonable accommodations); 42 U.S.C. § 3604; HUD FHEO-2020-01
• Tenn. Code Ann. § 47-10-107 (UETA)
• 24 C.F.R. Part 35 (Lead-based paint); 40 C.F.R. Part 745, Subpart F; 42 U.S.C. § 4852d

Disclaimer: This blog is for general informational purposes only and is not legal advice. Application of Tennessee’s landlord-tenant laws (including the URLTA) can vary by county, property type, and facts. Statutes and deadlines change. Consult a Tennessee attorney about your specific lease or dispute.