When you’re a landlord there’s nothing better than having a considerate tenant who pays rent on time, all of the time. Arranging for automatic deposits or setting up an online payment account for your tenant, such as through LeaseRunner’s Tenant Payment Center, are ways you can encourage the timely paying of rent.

Rent Due Dates and Late Payment Guidelines in Tennessee

Paying rent in Tennessee on time is fundamental to the rental agreement, but what happens when payments are delayed? Tennessee law sets clear guidelines for rent due dates and handling late payments as below.

Rent Due Dates Under Tennessee Law

Under Tennessee law, rent is generally due on the first business day of the month unless stated otherwise in a written rental agreement. Landlords and tenants can mutually agree on different due dates within their lease agreements.

Late Rent Payments in Tennessee

The law allows for a five-day grace period for tenants to pay rent without incurring penalties or receiving rent payment late notice. The rental grace period excludes Sundays and legal holidays. Landlords cannot charge late fees or take legal action during this timeframe unless otherwise agreed in the rental agreement. After the grace period, landlords can proceed with notices or late fees as per the agreement.

Legal Notice for Late Rent

If a tenant fails to pay rent after the five-day rental grace period, the landlord may issue a notice demanding payment or vacating the premises. This notice, often called a "notice to quit or vacate," must comply with Tennessee's requirements unless waived in the lease agreement. Some agreements may include a waiver of the notice to quit, allowing landlords to initiate legal action immediately following non-payment. 

Proper documentation and adherence to legal procedures are essential to protect both landlord and tenant rights.

Late Charges and NSF Fee based on Rent Laws in Tennessee

Navigating rental rights in Tennessee requires understanding the legal limits on late fees and NSF charges.

Late Fees for Rent in Tennessee 

Tennessee law allows landlords to impose late fees for rent payments received after the five-day grace period. However, these charges are capped at 10% of the overdue rent amount. 

This provision protects tenants from exorbitant fees while giving landlords a fair recourse for late payments. The grace period, excluding Sundays and legal holidays, provides a buffer for tenants before typical late charge for rent can be applied.

NSF (Non-Sufficient Funds) Fees

Landlords in Tennessee can charge an NSF fee of up to $30 for checks that bounce or are returned due to insufficient funds. This fee helps landlords recover the costs and inconvenience of handling such payments. Including these terms explicitly in the lease agreement is advisable to ensure clarity and enforceability.

Tenant’s Rights and Landlord’s Responsibilities

Tennessee law strikes a careful balance between protecting tenants from unfair charges and upholding landlords' rights to collect fees within legal limits.

Tenant Protections Against Excessive Fees

Tennessee law safeguards tenants by placing limits on fees landlords can impose. For late rent payments, landlords can charge a fee but are restricted to a maximum of 10% of the overdue rent in Tennessee. 

Similarly, for checks returned due to insufficient funds, the law caps the NSF fee at $30. These limitations ensure that landlords cannot exploit tenants by imposing excessive penalties. Tenants should review their lease agreements carefully to confirm that these fees comply with state laws.

Tenant’s Rights to Contest Late Fees or NSF Charges

Tenants in Tennessee have the right to contest any fees they believe are unfair or incorrectly applied. If a landlord imposes late fees exceeding the legal limit or charges NSF fees without proper cause, tenants can challenge these charges by:

• Requesting written documentation from the landlord justifying the fees.
• Reviewing their lease agreement to confirm the terms are being followed.
• Filing a complaint with local housing authorities or seeking legal counsel if fees violate Tennessee landlord laws.

Summary

Finally, with a focus on tenant rights and landlord responsibilities, rent laws in Tennessee provide clear rules for managing rental agreements. They address critical issues such as rent payments, fee limitations, and the procedures for handling disputes.