Tennessee Rent Increases and Pass-Through Costs Explained

Understanding when and why your rent can go up can provide peace of mind and help you stand up for your rights as a renter. In Tennessee, rent increases and pass-through costs—extra expenses landlords sometimes shift to tenants—are hot topics for many renters. While Tennessee does not have state-wide rent control, certain rules still apply regarding how, when, and why your rent can go up. This article breaks down what pass-through costs mean, your rights, and how to respond to a rent increase in Tennessee.

What Does "Pass-Through Costs" Mean for Tennessee Renters?

"Pass-through costs" are expenses landlords may try to pass directly onto tenants, in addition to your regular rent. Examples might include:

• Property tax increases
• Certain utility charges
• Facility upgrades or major repairs

Unlike some other states, Tennessee law does not regulate how or when landlords can pass along these costs as rent increases. There are also no statewide restrictions or caps on how much a landlord can increase rent, unless the terms are set in your lease agreement or you're in certain subsidized housing.

Are Rent Increases and Pass-Throughs Legal in Tennessee?

In most Tennessee cities and counties, landlords are allowed to raise the rent for any reason, at the end of a lease term or during a month-to-month tenancy, as long as they give proper written notice. There is no statewide system for approving or limiting pass-through costs.

• Written notice is required: For month-to-month tenancies, landlords must give at least 30 days’ notice before a rent increase can take effect. This rule is set by the Tennessee Uniform Residential Landlord and Tenant Act (URLTA)¹ when applicable.
• For fixed-term leases, rent usually can't be increased until the lease renews, unless otherwise stated in your lease.
• If a landlord tries to pass on specific costs (like utility increases or repairs), check your lease first. These "pass-through clauses" must be clearly written in your rental agreement.

Key Official Forms for Tennessee Renters

• Notice of Rent Increase (no specific form number): Landlords typically use a simple written letter, email, or another form of notice to inform you of a rent increase. It must specify the new amount, the effective date, and be delivered at least 30 days in advance for month-to-month tenancies. You can find guidance and an informational sample from the Tennessee Department of Commerce & Insurance - Renters.
• Tennessee Uniform Residential Landlord and Tenant Act (URLTA) Lease: Most official lease guidance and samples are offered by the state or city housing programs. Clarify with your landlord which lease applies, especially in larger cities covered by URLTA.

If you receive a notice of rent increase that includes "pass-through" costs, review your lease and the notice carefully. If the cost isn't allowed by your agreement, you can contest it with your landlord, or seek advice from the agency below.

How the Rent Increase Process Works in Tennessee

While Tennessee is considered a "landlord-friendly" state, all rent increases must follow certain steps to be valid. The primary agency that handles landlord-tenant concerns is the Tennessee Department of Commerce & Insurance, Division of Consumer Affairs. This is where renters can submit complaints or get more information on their rights.

• Landlords must give you at least 30 days’ advance written notice before a rent increase can take effect in a month-to-month tenancy.
• For a fixed-term lease, rent cannot increase during the term—unless your lease specifically says so.
• Any "pass-through" costs must be spelled out in the rental agreement to be legally enforceable. If not specified, you are not required to pay extra costs above your contractual rent.
• If you believe a rent hike violates your lease or was not properly noticed, you can file a complaint with the Division of Consumer Affairs.

What Is Covered by the Uniform Residential Landlord & Tenant Act (URLTA)?

The Tennessee Uniform Residential Landlord and Tenant Act (URLTA) covers most urban counties with a population over 75,000, and sets the rules for required notice periods and lease enforcement. In other parts of Tennessee, common law governs tenancies, and protections may be more limited.

• URLTA counties include Davidson (Nashville), Shelby (Memphis), Knox (Knoxville), and several others.
• Even in non-URLTA counties, lease terms and written notice requirements often still apply, but it's best to consult the Division of Consumer Affairs if you have questions.

FAQ: Pass-Through Costs and Rent Increases in Tennessee

1. Can my landlord pass along property tax increases to me?
   If your lease contains a provision allowing "pass-through" of specific costs like property tax increases, the landlord may do so. Otherwise, you are only responsible for the rent listed in your agreement.
2. How much notice does my landlord have to give before increasing the rent?
   In covered cities and counties, landlords must provide at least 30 days' written notice to tenants in month-to-month rentals before a rent increase takes effect.
3. Are there any rent control laws or limits on how much my rent can increase in Tennessee?
   No, Tennessee law does not set a maximum rent increase. However, all increases must follow proper notice rules and cannot violate your lease agreement.
4. What should I do if I receive a notice of rent increase that I think is illegal?
   First, check your lease for limits or requirements. If you think your landlord didn't give proper notice or is charging fees not in your lease, contact the Division of Consumer Affairs and file a complaint.
5. Does Tennessee have an official board or tribunal to handle rent disputes?
   The Tennessee Department of Commerce & Insurance, Division of Consumer Affairs is the main agency for rental disputes in Tennessee.

Need Help? Resources for Renters

• Tennessee Department of Commerce & Insurance – Division of Consumer Affairs: File a complaint, learn about your rights, and ask questions.
• Tennessee Renters Information: Official state guidance on rental laws, leases, and tenant rights.
• Local Housing Authorities: May provide support in cases of subsidized housing or major building repairs.
• Legal aid organizations, such as Tennessee Justice Center, can provide free or low-cost legal advice for renters.

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1. Tennessee Uniform Residential Landlord and Tenant Act (URLTA)
2. Tennessee Department of Commerce & Insurance – Division of Consumer Affairs

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