Tennessee Month-to-Month Rental Agreement
Lease agreements vary depending on the type of tenancy. For instance, fixed-term Tennessee lease agreements with set beginning and end dates give landlords and tenants a defined contract length, whereas month-to-month lease agreements offer both parties more flexibility.
Month-to-month lease agreements, or “rental contracts,” automatically extend after rent payments and can be terminated with proper written notice from the landlord or the tenant. Month-to-month renters are considered “tenants at will” since they can renew or terminate their leases at any time.
In this guide, we’ll discuss Tennessee month-to-month lease agreements, the laws that regulate them, and crucial considerations like required disclosures, rent payment laws, security deposit regulations, and more.
Tennessee Month-to-Month Lease Laws
Being a Tennessee landlord comes with several responsibilities outlined in the state’s landlord-tenant laws. Understanding this legislation is essential for navigating certain aspects of month-to-month rental contracts, such as:
- Disclosures
- Termination notices
- Rent increases
- Evictions
- Security deposit laws
- Pet deposits and rent limitations
- Late fees
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Required Landlord Disclosures (4)
- Lead-based paint: If a rental property was constructed before 1978, federal law requires that landlords disclose to tenants any known lead-based paint or lead-based paint hazards within the property before the lease signing.
- Agent and landlord identification: Tennessee landlords must provide their name and address, as well as the property owner’s name and address, to tenants (in writing) before the lease starts (Tenn. Code Ann. § 66-28-302(a)).
- Showings: Lease agreements must explicitly state that the landlord has the right to bring prospective tenants onto the property within a tenant’s final 30 days before moving out (Tenn. Code Ann. § 66-28-403(e)(5)).
- Security deposit location: If a landlord collects a security deposit, they must give the tenant the name and address of the bank where the money is held (Tenn. Code Ann. § 66-28-301(a)).
Required Notice to Terminate Month-to-Month Agreement
In Tennessee, both landlords and tenants must give a minimum of 30 days’ written notice to terminate a month-to-month rental agreement.
No reason for termination is required.
Rent Increase Laws
Tennessee does not have rent control or stabilization laws on the books.
In that vein, while Tennessee law doesn’t explicitly mention rent increase limitations or rules for month-to-month tenancies, landlords commonly give tenants a 30-day written notice before raising the rent.
Rent Payment Laws
Grace period: Tennessee law gives tenants a 5-day grace period for late rent payments. They have until the 5th day after the rent due date to pay rent in full without incurring late fees (Tenn. Code Ann. § 66-28-201(d)).
Late rent fees: Landlords in Tennessee can charge late fees for overdue rent, which cannot exceed 10% of the total rent amount. The lease agreement must outline late rent fees (Tenn. Code Ann. § 66-28-201(d)).
Tenant’s right to withhold rent: Tenants can legally withhold rent if the landlord fails to perform repairs to restore a residence’s habitability. The tenant must first provide written notice to the landlord outlining the issue. If the landlord fails to address the problem within a reasonable timeframe, the tenant can pay for the services themselves and deduct the cost from their upcoming rent payment (Tenn. Code Ann. § 66-28-502(a)(1)(A)).
Pet rent: Tennessee law doesn’t have specific statutes addressing pet rent. Landlords can charge as much as they see fit for pet rent as long as the lease clearly outlines the charges.
Security Deposit Rules
Maximum security deposit: Tennessee law doesn’t limit how much a landlord can charge for a security deposit.
Deposit receipt: Landlords in Tennessee are not legally required to give tenants a separate receipt for their security deposit.
Security deposit location: Landlords must provide tenants with the name and address of the bank where their security deposit is held (Tenn. Code Ann. § 66-28-301(a)).
Tracking deductions: Tenants can ask their landlord for a list of expenses paid for with their security deposit. If the landlord doesn’t provide this list, they’re not entitled to keep any portion of the security deposit (Tenn. Code Ann. § 66-28-301(b)).
Returning the security deposit: Landlords must return the security deposit to the tenant within 30 days of the tenant’s departure from the property (Tenn. Code Ann. § 66-28-301(g)(1)).
Property Access Regulations
Advance notice: Landlords must give their tenants at least 24 hours of notice before they can enter a rental property (Tenn. Code Ann. § 66-28-503(a)).
Immediate access: Tennessee law allows landlords to access a rental property without prior notice in emergencies (Tenn. Code Ann. § 66-28-503(b)).
Landlord harassment: A landlord who repeatedly enters a tenant’s property without proper notice engages in landlord harassment, which could give the tenant legal grounds to break their lease early (Tenn. Code Ann. § 66-28-503(b)).
Rental Agreement Violations
Missed rent payment: If a tenant doesn’t pay rent by the end of their 5-day grace period, Tennessee landlords can issue them a 14-day Notice to Quit (Tenn. Code Ann. § 66-28-505(a)(2)).
If a rental property is within a Tennessee county with more than 75,000 people, landlords can waive the notice requirement if the lease includes a “Tenant Waiver of Notice” clause (Tenn. Code Ann. § 66-28-505(b)). Month-to-month leases generated through the TurboTenant template include this clause.
Lease violation: If a tenant violates a lease in a way they can fix, Tennessee landlords can issue a 14-day Notice to Comply, allowing tenants to correct the issue. For serious lease violations, landlords don’t have to give tenants a chance to fix the problem; instead, they can give them a 3-day Notice to Terminate. (Tenn. Code Ann. § 66-28-505(b)).
Self-help evictions: Tennessee landlords cannot attempt to self-help evict tenants. If they do, tenants can sue landlords for damages, go to court to regain entry into their rental unit, or break their lease without penalty (Tenn. Code Ann. § 66-28-504).
Lease abandonment: If a tenant in Tennessee breaks their month-to-month lease early and causes the rental unit to sit vacant, they might be liable to continue paying rent until the landlord finds a new tenant to move in (Tenn. Code Ann. § 66-28-507).
Tennessee Month-to-Month Lease Agreement FAQs
What is a Tennessee month-to-month lease agreement?
A Tennessee month-to-month lease agreement is a rental contract that automatically renews each month until the landlord or the tenant provides proper 30-day notice to terminate.
What’s the difference between a fixed-term lease and a month-to-month agreement?
Fixed-term leases in Tennessee have set end dates, which provide stability through locked-in rent and terms but less flexibility for early termination.
Month-to-month leases automatically renew each month, allowing both parties to change or terminate the contract with proper notice. However, due to shorter notice periods and the potential for abrupt rent increases, these contracts are less predictable.
How do you end a Tennessee month-to-month lease agreement?
In Tennessee, landlords and tenants can end a month-to-month lease agreement by issuing the other party a written 30-day notice to terminate.