TN Security Deposit Deductions Question – Estimates Allowed?

[Laura Trickett]

Hi all,

I’m managing a rental property in Memphis, Tennessee, and I’m in the process of returning a tenant’s security deposit. I want to make sure I’m handling this by the book.

It seems landlords are allowed to base deductions on reasonable estimated repair costs rather than only on completed work with receipts. 

My questions to the community:

1. In practice, do you all typically deduct based on estimates, or do you wait until the work is done and then use actual receipts?

2. Any best practices you’d recommend for keeping deductions “reasonable” so they don’t get thrown out in small claims court?

I’m also mindful of the 30-day deadline in Tennessee to return the deposit or send the itemized list of deductions, so I don’t want to miss that window waiting for repairs to be completed.

Would love to hear how other landlords in TN

Thanks!