Tennessee property management laws: Requirements, regulations, and more

What is Tennessee property management?

Tennessee property management is the professional oversight and operation of residential or commercial properties in the state. It often includes services such as collecting rent, maintaining common areas, enforcing HOA rules, managing resident communications, and supporting board members. In Tennessee, property management companies like FirstService Residential specialize in homeowners associations (HOAs), condominiums, luxury high-rises, and master-planned communities in areas including Chattannoga, Knoxville, Nasvhille, Memphis, and beyond.

Property managers are typically hired by associations or landlords to simplify daily operations and protect the value of the property. These services are regulated by Tennessee property management laws, which define what property managers can and cannot do, who must be licensed, and how managers interact with residents and boards.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Tennessee property management laws

Under the Tennessee Real Estate Broker License Act of 1973 and the guidance of the Tennessee Real Estate Commission (TREC), managing rental property for compensation generally requires an active broker or affiliate broker license. Affiliate brokers must work under the supervision of a licensed principal broker. Unlicensed staff may be able to assist with certain administrative tasks, but anything involving leases, rent collection, or contract negotiations must be conducted by someone with the appropriate license.

A real estate license may not be required to manage a community association if the responsibilities are limited to community-focused tasks such as budgeting, enforcing covenants, coordinating maintenance, and collecting assessments. These activities are generally not classified as brokerage services under the Act. However, if the role expands to include leasing units or collecting rent on behalf of individual owners, obtaining a broker or affiliate broker license becomes necessary. This distinction can help HOA boards and management companies to divide responsibilities effectively and stay compliant without unnecessary licensing hurdles.

Tennessee property managers are also subject to the Tennessee Human Rights Act and must comply with the federal Fair Housing Act, both of which prohibit housing discrimination based on protected classes.
 

Tenant rights and responsibilities

Tenant rights in Tennessee are primarily defined by the Uniform Residential Landlord and Tenant Act (URLTA), which applies in counties with populations over 75,000 according to the 2010 federal census. Tenants are responsible for paying rent, following lease terms, and keeping the unit clean and undamaged.

Additional rules under Tennessee property management laws include:

• Tenants must allow reasonable access to the unit for inspections, repairs, or showings, but landlords must give proper notice and cannot use this access to harass the tenant. Entry without notice is only allowed in emergencies or specific situations like abandonment or utility shutoff.
   
• A five-day grace period applies before late fees can be charged, and the fee may not exceed 10% of the amount of rent past due.
   
• Security deposits must be held in an account used only for that purpose and tenants must be notified of the location of the account.
   
• Tenants must receive a written list of deductions from their security deposit and may request a move-out inspection.

Evictions must follow legal procedures, including formal notice and, when necessary, court action. Self-help eviction actions — like changing the locks, shutting off utilities, or removing a tenant’s belongings without a court order — are illegal. Always consult with qualified legal counsel when considering an eviction.
 

Common HOA laws in Tennessee

Homeowners associations in Tennessee are governed by a mix of state laws, local laws, zoning regulations, and community-specific governing documents. Tennessee does not have a single comprehensive HOA statute, but several key laws may apply:

• Tennessee Nonprofit Corporation Act: Governs most HOAs that are incorporated as nonprofits, including board duties, elections, and recordkeeping.
   
• Tennessee Human Rights Act: Prohibits discrimination by HOAs in rule enforcement, access to amenities, and other community decisions.
   
• Federal Fair Housing Act: Prevents HOAs from enforcing rules in a way that discriminates based on protected characteristics.
   
• Local ordinances: City and county laws may impact how HOAs handle issues like noise, parking, or short-term rentals.

Although HOAs have broad authority to regulate common areas and community standards, they must do so within legal boundaries. Boards often rely on professional property management companies like FirstService Residential to help interpret and apply these rules fairly and effectively.
 

Tennessee HOA rules and regulations

Tennessee HOA rules and regulations are the day-to-day policies that govern how residents live in a community. They often include architectural standards, parking rules, noise restrictions, pet policies, and amenity usage guidelines. These rules must be consistent with the association’s CC&Rs, bylaws, and Tennessee property management laws. If a rule contradicts a higher legal authority or is applied inconsistently, it could be challenged or unenforceable.

Most associations in Tennessee adopt rules by a vote of the board, sometimes with resident input or notice requirements. Once adopted, rules must be clearly communicated to residents. Property managers play a key role in this process by helping enforce policies fairly and providing updates on community websites or through email notices.

Tennessee property management laws also require that fines or penalties for violations follow due process. Homeowners must be given notice of violations and an opportunity to respond. Boards must document these interactions and follow the procedures in their bylaws or enforcement policies.
 

How FirstService Residential can help

FirstService Residential is the leading community association management company in Tennessee. Our expert teams work closely with board members to simplify operations, support legal compliance, and improve the resident experience.

Communities managed by FirstService Residential in Tennessee have benefited from:

• A full suite of exclusive banking and insurance programs through our affiliate, FirstService Financial
   
• Instant access to critical documents and communication between residents and board members through our proprietary management software platform, FirstService Residential Connect™
   
• Legal and regulatory guidance through our network of experienced Tennessee-based partners
   
• Our 24/7 Customer Care team for round-the-clock multilingual resident support

Need help navigating Tennessee property management laws or streamlining your HOA’s compliance with new regulations? Contact FirstService Residential today to learn how our local experts can support your board, simplify management tasks, and strengthen your community.