The median housing price for homes in the U.S. is around $363,300, this is the highest since January 1999. The laws of owning or managing property differ from state to state. In terms of owning Tennessee property, any form of collecting rent, leasing, and renting property are subject to Tennessee property management laws.
This short guide will give you the ins and outs of the property management laws in Tennessee.
There may be an individual who presides over the property but is not present. Specific laws are determining how an absentee homeowner can control property in the state of Tennessee.
The owner of a property can allow property managers to handle the self-sustaining process of managing a home. Or, owners can supervise their properties while following state law.
What Is a Property Manager?
A property manager is responsible for the oversight of a property. The property manager is responsible for the oversight and maintenance of the property. But, the duties of a property manager can differ depending on the client’s requirements.
Some property owners prefer their managers to maintain all aspects of the property. Some owners may want to have part of the process in their hands including things like paying the utility bills.
Property Management Duties
Tennessee property managers are responsible for many aspects of their home maintenance. This can include rent and security deposit collections. It can also include filing vacancies when the property is empty as well.
Property managers also overlook the signing and re-signing of a lease for a certain property. This also includes the enforcement of these leases once they are signed.
They are also responsible for the evictions and reports. These reports include monthly and annual profit analysis data.
But more importantly, the property itself requires maintenance. The property manager will be the one to communicate with contractors to fix harder jobs. Or, fixing the issues themselves.
They are also responsible for the elements immediately surrounding the house including coordination of lawn care and snow removal.
What do property managers charge? Property managers charge 10% of the net rental income. The extent of their responsibilities may raise or lower this price. It is customary for managers to collect the first month’s rent when filling in a vacancy.
They will also handle the additional fees and terms regarding the lease renewal.
Real Estate Broker’s License
Many states require the property owners dealing with management to possess certain licenses. It is a requirement for homeowners to be 18 years of age or older to qualify for the license.
In Tennessee, a real estate broker’s license is required to perform a broad array of managerial duties on estates. The license is not required only in certain circumstances.
A license is not required to collect security deposits and rent from the tenant. In addition, it does not require a license to supervise or view the unit.
The verification status of a broker’s license is found on Tennessee’s license search database. This can verify whether or not a real estate broker possesses a legitimate license.
Licensing requires 120 hours of class time while affiliate brokers require 30 hours. The school requires approval from the Tennessee Real Estate Commission. Once you complete these hours and practice, you must pass the broker examination.
Property Management Agreement
A Tennessee Property Management Agreement is built between a property manager and the owner of one or multiple properties. It’s important to build a firm management agreement that showcases the specific terms and conditions between both parties.
The management agreement should include the names of both parties. The location of the property. It should also include the date of the signatures as well as all the listed duties under the property manager.
It should also include the right to terminate and the overview of payment distribution to the owner. The agreement also needs to include information regarding security deposits, maintenance terms, and rent rate stipulations.
Required Disclosures of Information
In Tennessee, you must include a range of disclosures in the lease. In the contract, you must share the name and address of the owner or the property manager affiliate. This fulfills the landlord/manager requirement.
There are also requirements for when a landlord wishes to show property before the termination of a lessee’s agreement. There is a requirement to share in the contract that a landlord is given free rein to show a property 30 days before termination.
But, before showing to a protective tenant, the law includes forcing a landlord to give 24 hours notice before each showing. Landlords must comply with anti-discrimination laws. They cannot reject an applicant based on skin color or religious background.
The landlord does not need to give prior notice before entering the property for certain reasons. This can also include repairs and other non-emergency reasons.
Tennessee Rental Laws
Tennessee rental laws include agreements that outline the rules regarding lease agreements and evictions. These can apply to any property agreement within the state of Tennessee.
A standard lease provides an overview of the terms between a tenant and their landlord. These terms cover the renting of the owner’s property.
It’s common for the rental of a standard year to last through one year. The standard lease agreement is the most common rental contract in the state of Tennessee.
The month-to-month contract is also known as the month-to-month lease or an at-will tenancy. This is an agreement between the tenant and the landlord that provides automatic renewal every month until the termination of the contract. Either party can terminate the contract at any time.
In Tennessee, the law requires an individual to give notice a minimum of 30 days before the termination.
There are no maximum security deposit limits. But, the money needs to be returned within 30 days of the lease termination.
There are four legally acceptable reasons for evictions in Tennessee. There is an immediate notice to quit when there is evidence of prostitution or drug violations.
A landlord can require tenants to immediately vacate the premises. Another misdemeanor illegal behavior will require 3 days’ notice of eviction. Non-payment of rent can also result in an eviction.
If the tenant does not pay by the 14th day, then they will leave on the 30th day. Otherwise, if a tenant breaks any other portion of the lease, a landlord can terminate the contract and give 30 days’ notice.
Tennessee Property & Management
Before signing any contract, make sure you familiarize yourself with all laws about Tennessee property. Any homeowner wishing to participate in their property must acquire a broker license and follow state rent laws.
The state attorney’s office can provide further information on specific laws. Before signing, always consult with a professional about property rules.
Make an appointment with our management team to further assess your properties!