Renting Out Your Property in Tennessee: A Guide for Landlords
Renting out property in Tennessee requires understanding specific state laws regarding security deposits, eviction procedures, and landlord-tenant rights. Tennessee landlords must comply with the Uniform Residential Landlord and Tenant Act in most counties, which governs everything from maintenance responsibilities to proper notice requirements.
Tennessee landlords should be aware that while the state generally favors landlord rights, failing to follow proper legal procedures can result in costly legal battles and potential liability. Always use written lease agreements and keep detailed records of all communications and property conditions.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Relevant Laws
Tennessee Uniform Residential Landlord and Tenant Act (URLTA)
This is the primary law governing landlord-tenant relationships in Tennessee, but only applies automatically in counties with populations over 75,000. It covers security deposits, maintenance responsibilities, eviction procedures, and other rental regulations. Landlords in smaller counties can opt in to be covered by this act.
Tennessee Security Deposit Law
Under Tennessee law, there is no limit on how much landlords can charge for security deposits. However, landlords must return deposits within 30 days of lease termination, along with an itemized list of any deductions. Failure to comply can result in the tenant being awarded up to three times the amount wrongfully withheld.
Tennessee Fair Housing Law
Tennessee prohibits discrimination in housing based on race, color, religion, sex, national origin, disability, or familial status. Landlords cannot refuse to rent, charge different rates, or apply different terms based on these protected characteristics.
Tennessee Lead-Based Paint Disclosure
For properties built before 1978, landlords must disclose known information about lead-based paint hazards before leases take effect. Landlords must also provide tenants with an EPA-approved pamphlet on lead poisoning prevention.
Tennessee Landlord Entry Laws
In counties where URLTA applies, landlords must provide at least 24 hours notice before entering a rental property except in emergencies. The law requires entry at reasonable times and with reasonable notice.
Tennessee Eviction Laws
Landlords must follow specific legal procedures to evict tenants, including proper notice periods (typically 14-30 days depending on the violation). Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in Tennessee.
Tennessee Rental Property Tax Laws
Rental income must be reported on both federal and Tennessee state tax returns. Property owners may be eligible for various deductions related to property maintenance, mortgage interest, and depreciation. Tennessee also has specific property tax rates for rental properties.
Regional Variances
Major Metropolitan Areas
Nashville has specific local ordinances regarding short-term rentals, requiring permits and limiting non-owner occupied short-term rentals in residential areas. Property owners must obtain a permit from the Metro Codes Department and pay hotel occupancy taxes. Nashville also enforces stricter fire safety requirements for rental properties.
Memphis requires rental property registration through the Memphis and Shelby County Office of Code Enforcement. Landlords must pay an annual fee and undergo property inspections. Memphis also has a Joint Agency Task Force that conducts random inspections of rental properties to ensure compliance with health and safety codes.
Knoxville has implemented specific regulations for short-term rentals, requiring permits and restricting them in certain residential zones. The city also has a rental inspection program for properties in certain designated areas, particularly near the University of Tennessee campus.
Tourist Destinations
Gatlinburg has unique regulations due to its status as a tourist destination. The city requires a business license for all rental properties and collects additional tourism taxes. There are also specific fire safety requirements due to the mountainous terrain and wildfire risks.
Pigeon Forge has zoning restrictions that favor tourist accommodations. Rental properties must be registered with the city and pay amusement taxes in addition to standard taxes. The city also has specific signage and parking requirements for rental properties.
University Towns
Murfreesboro, home to Middle Tennessee State University, has specific occupancy limits for rental properties to prevent overcrowding in student housing areas. The city requires annual rental permits and has noise ordinances specifically targeting rental properties in neighborhoods near campus.
Chattanooga has implemented a short-term vacation rental ordinance requiring permits and limiting the number of non-owner occupied rentals in residential areas. The city also has specific regulations for properties in historic districts, which may limit exterior modifications to rental properties.
Rural Counties
Sevier County has fewer restrictions on rental properties outside of incorporated areas, but requires compliance with septic system regulations for properties not connected to municipal sewer systems. The county also has specific wildfire mitigation requirements for rental properties in wooded areas.
Hamilton County enforces flood zone restrictions that may affect rental properties near waterways. Property owners in designated flood zones may face additional insurance requirements and building restrictions when converting properties to rentals.
Suggested Compliance Checklist
Research Tennessee Landlord-Tenant Laws
1 days after startingFamiliarize yourself with Tennessee's Uniform Residential Landlord and Tenant Act (URLTA), which applies in counties with populations over 75,000. If your property is in a smaller county, local laws may differ. Key areas to understand include security deposit limits, notice requirements for entry, eviction procedures, and maintenance responsibilities.
Obtain Necessary Licenses and Permits
7 days after startingCheck with your local municipality about business license requirements for rental properties. Many Tennessee cities and counties require landlords to obtain a business license. You may also need to register with your county tax assessor as some areas have specific taxes for rental properties.
Draft Rental Property Business License Application
10 days after startingComplete the application for your rental property business license. Requirements vary by municipality, but typically include property information, owner details, and payment of applicable fees. Some jurisdictions may require property inspections before issuing a license.
Create a Rental Application Form
14 days after startingDevelop a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws prohibiting discrimination.
Prepare a Residential Lease Agreement
21 days after startingDraft a legally compliant lease agreement specific to Tennessee. Include all required disclosures, rent amount, lease term, security deposit details, maintenance responsibilities, and other terms. Tennessee law has specific requirements regarding what can and cannot be included in a lease.
Create a Lead-Based Paint Disclosure Form
21 days after startingFederal law requires landlords of properties built before 1978 to disclose known information about lead-based paint hazards. Even if you're unsure about lead paint in your property, you must provide this disclosure and the EPA pamphlet 'Protect Your Family from Lead in Your Home' to tenants before they sign the lease.
Develop a Move-In/Move-Out Inspection Checklist
28 days after startingCreate a detailed form documenting the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas with space for notes and photos. This documentation is crucial for security deposit disputes and should be signed by both parties.
Establish Landlord's Rules and Regulations
28 days after startingCreate a document outlining specific rules for the property beyond what's in the lease. This may include quiet hours, guest policies, maintenance expectations, parking rules, and other community standards. Ensure these rules don't violate tenant rights under Tennessee law.
Create a Security Deposit Receipt
28 days after startingDevelop a receipt for security deposits that includes the amount received, date, property address, and where the deposit will be held. Tennessee law doesn't require deposits to be held in separate accounts, but you must return deposits within 30 days of lease termination with an itemized list of any deductions.
Prepare a Notice of Entry Form
28 days after startingCreate a form to notify tenants when you need to enter the property. Tennessee law requires landlords to provide reasonable notice (typically 24 hours) before entering a rental unit except in emergencies. This form should include the date, time, and purpose of entry.
Set Up Property Insurance
35 days after startingObtain landlord insurance (also called rental property insurance) which differs from homeowner's insurance. This should cover the building, liability protection, and potentially lost rental income. Consider requiring tenants to obtain renter's insurance as part of your lease terms.
Establish a System for Rent Collection
35 days after startingDecide how you'll collect rent (check, direct deposit, online payment services) and clearly communicate this to tenants. Document your late fee policy, ensuring it complies with Tennessee law, which doesn't specify maximum late fees but requires them to be reasonable and specified in the lease.
Create a Maintenance Request System
42 days after startingEstablish a clear process for tenants to request repairs and maintenance. Tennessee law requires landlords to maintain habitable premises, including functioning plumbing, heating, and electrical systems. Document your response procedures to show good-faith compliance with these obligations.
Research Local Housing Codes and Inspections
49 days after startingFamiliarize yourself with local housing codes and schedule any required inspections. Some Tennessee municipalities require periodic safety inspections of rental properties. Ensuring your property meets these standards helps avoid fines and liability issues.
Set Up Record-Keeping System
56 days after startingEstablish a system for maintaining all rental-related records, including communications with tenants, maintenance requests and completions, rent payments, and copies of all notices. Good record-keeping is essential for tax purposes and potential legal disputes.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Research Tennessee Landlord-Tenant Laws | Familiarize yourself with Tennessee's Uniform Residential Landlord and Tenant Act (URLTA), which applies in counties with populations over 75,000. If your property is in a smaller county, local laws may differ. Key areas to understand include security deposit limits, notice requirements for entry, eviction procedures, and maintenance responsibilities. | - | 1 |
| Obtain Necessary Licenses and Permits | Check with your local municipality about business license requirements for rental properties. Many Tennessee cities and counties require landlords to obtain a business license. You may also need to register with your county tax assessor as some areas have specific taxes for rental properties. | - | 7 |
| Draft Rental Property Business License Application | Complete the application for your rental property business license. Requirements vary by municipality, but typically include property information, owner details, and payment of applicable fees. Some jurisdictions may require property inspections before issuing a license. | Rental Property Business License | 10 |
| Create a Rental Application Form | Develop a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws prohibiting discrimination. | Rental Application Form | 14 |
| Prepare a Residential Lease Agreement | Draft a legally compliant lease agreement specific to Tennessee. Include all required disclosures, rent amount, lease term, security deposit details, maintenance responsibilities, and other terms. Tennessee law has specific requirements regarding what can and cannot be included in a lease. | Residential Lease Agreement | 21 |
| Create a Lead-Based Paint Disclosure Form | Federal law requires landlords of properties built before 1978 to disclose known information about lead-based paint hazards. Even if you're unsure about lead paint in your property, you must provide this disclosure and the EPA pamphlet 'Protect Your Family from Lead in Your Home' to tenants before they sign the lease. | Lead-Based Paint Disclosure Form | 21 |
| Develop a Move-In/Move-Out Inspection Checklist | Create a detailed form documenting the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas with space for notes and photos. This documentation is crucial for security deposit disputes and should be signed by both parties. | Move-In/Move-Out Inspection Checklist | 28 |
| Establish Landlord's Rules and Regulations | Create a document outlining specific rules for the property beyond what's in the lease. This may include quiet hours, guest policies, maintenance expectations, parking rules, and other community standards. Ensure these rules don't violate tenant rights under Tennessee law. | Landlord's Rules and Regulations | 28 |
| Create a Security Deposit Receipt | Develop a receipt for security deposits that includes the amount received, date, property address, and where the deposit will be held. Tennessee law doesn't require deposits to be held in separate accounts, but you must return deposits within 30 days of lease termination with an itemized list of any deductions. | Security Deposit Receipt | 28 |
| Prepare a Notice of Entry Form | Create a form to notify tenants when you need to enter the property. Tennessee law requires landlords to provide reasonable notice (typically 24 hours) before entering a rental unit except in emergencies. This form should include the date, time, and purpose of entry. | Notice of Entry Form | 28 |
| Set Up Property Insurance | Obtain landlord insurance (also called rental property insurance) which differs from homeowner's insurance. This should cover the building, liability protection, and potentially lost rental income. Consider requiring tenants to obtain renter's insurance as part of your lease terms. | - | 35 |
| Establish a System for Rent Collection | Decide how you'll collect rent (check, direct deposit, online payment services) and clearly communicate this to tenants. Document your late fee policy, ensuring it complies with Tennessee law, which doesn't specify maximum late fees but requires them to be reasonable and specified in the lease. | - | 35 |
| Create a Maintenance Request System | Establish a clear process for tenants to request repairs and maintenance. Tennessee law requires landlords to maintain habitable premises, including functioning plumbing, heating, and electrical systems. Document your response procedures to show good-faith compliance with these obligations. | - | 42 |
| Research Local Housing Codes and Inspections | Familiarize yourself with local housing codes and schedule any required inspections. Some Tennessee municipalities require periodic safety inspections of rental properties. Ensuring your property meets these standards helps avoid fines and liability issues. | - | 49 |
| Set Up Record-Keeping System | Establish a system for maintaining all rental-related records, including communications with tenants, maintenance requests and completions, rent payments, and copies of all notices. Good record-keeping is essential for tax purposes and potential legal disputes. | - | 56 |
Frequently Asked Questions
In Tennessee, a valid lease agreement should be in writing for terms longer than one year (to comply with the Statute of Frauds). The lease should include: names of all parties, property address, lease term, rent amount and due date, security deposit amount, maintenance responsibilities, and signatures of all parties. While oral leases for terms under one year can be legally binding, written agreements are strongly recommended for all rental arrangements to avoid disputes.
Tennessee law does not set a maximum limit on security deposits. However, landlords typically charge between one and two months' rent. You must return the security deposit within 30 days after the tenant moves out, along with an itemized list of any deductions. If you fail to comply with this requirement, you may be liable for up to three times the amount wrongfully withheld, plus attorney's fees.
Tennessee landlords must maintain the property in compliance with building and housing codes affecting health and safety. This includes maintaining electrical, plumbing, sanitary, heating, ventilating, and air-conditioning systems in good working order. You must also make all repairs necessary to keep the premises in a fit and habitable condition. These obligations cannot be waived by the tenant in the lease agreement.
Tennessee law does not specifically mandate a notice period for landlord entry. However, courts generally recognize that tenants have a right to quiet enjoyment of the property. As a best practice, provide at least 24 hours' written notice before entering for non-emergency matters such as repairs or showings. For emergencies that threaten property damage or safety, you may enter without notice.
In Tennessee, either landlord or tenant must provide at least 30 days' written notice to terminate a month-to-month tenancy. The notice should specify the termination date, which typically coincides with the end of a rental period. For fixed-term leases, no notice is required if you don't wish to renew at the end of the term, unless the lease specifies otherwise.
To evict a tenant in Tennessee, you must: (1) Provide proper written notice (14 days for non-payment of rent, 30 days for lease violations); (2) File a detainer warrant with the court if the tenant doesn't comply; (3) Attend the court hearing; (4) If you win, obtain a writ of possession; (5) Have the sheriff execute the writ. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal and can result in liability for damages.
Tennessee state law does not require statewide registration of rental properties. However, some municipalities may have local registration or licensing requirements. Check with your local city or county government to determine if there are any local registration, inspection, or permit requirements for rental properties in your specific area.
In Tennessee, landlords must disclose: (1) Lead-based paint hazards for properties built before 1978 (federal requirement); (2) Known environmental hazards; (3) The name and address of the property owner or authorized agent for service of process and notices; (4) Any shared utility arrangements. Additionally, if the property has been used for methamphetamine production, you must disclose this fact unless the property has been properly decontaminated.
In Tennessee, landlords can generally consider criminal history when screening tenants, but blanket policies rejecting all applicants with any criminal record may violate fair housing laws. Consider factors like the nature and severity of the offense, when it occurred, and evidence of rehabilitation. Focus on criminal history that indicates a demonstrable risk to property or other tenants' safety. Consult with an attorney to develop a screening policy that complies with fair housing laws.
Tennessee has no state law limiting how much you can increase rent. For month-to-month tenancies, you must provide at least 30 days' written notice before implementing a rent increase. For fixed-term leases, rent cannot be increased during the lease term unless the lease specifically allows for it. While there are no rent control laws in Tennessee, increases cannot be discriminatory or retaliatory in nature.