Tennessee
Property Management Fees in Tennessee: What Landlords Pay in 2026
Tennessee property managers typically charge 8–10% of monthly rent. Nashville’s investor boom drives competition at the top; smaller markets run 10–12%. Here’s what landlords across Tennessee actually pay — by city — and what you keep by managing your own properties.
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Tennessee Property Management Fees: The State Average
Tennessee landlords pay an average of 8–10% of monthly rent in property management fees statewide. That positions Tennessee at the lower-to-middle end of the national average — a function of the state’s landlord-friendly legal framework and an unusually powerful economic tailwind. Tennessee has no statewide income tax, no statewide rent control, and a streamlined unlawful detainer (eviction) process. The result is a regulatory environment that attracts investors from higher-cost states while keeping property management compliance overhead low.
The BLS reports a median property manager wage of $58,230 per year in Tennessee — below the national median of $62,850. Nashville drives this figure and anchors the low end of fees: the metro has attracted enormous investor capital since 2015, spawning a dense population of professional property management firms that compete aggressively on price. Franklin and Murfreesboro, as Nashville suburbs with above-average rents, also see competitive 8–9% rates. Secondary markets like Jackson, Johnson City, and Clarksville see 10–12%, reflecting higher per-unit workloads without proportionally higher rent bases.
Tennessee’s no-income-tax status is the defining macroeconomic driver. Out-of-state investors from California, Illinois, and New York have poured capital into Nashville and Knoxville real estate, creating a highly professionalized PM industry that must compete for both properties to manage and tenants to place. This investor influx has established 8–10% as the de facto market standard for Nashville, compressing fees even as operating costs have risen with the metro’s rapid growth.
Property Management Fees by Tennessee City (2026)
Rates reflect residential single-family and small multifamily properties. Placement fees are charged separately on tenant placement and typically equal 50–100% of one month’s rent.
| City / Market | Monthly Fee % | Flat Fee Range | Placement Fee | Notes |
|---|---|---|---|---|
| Nashville | 8–10% | $120–$220/unit | 75–100% of 1 month | Massive investor influx; dense PM competition keeps rates at the low end |
| Memphis | 9–11% | $80–$160/unit | 50–75% of 1 month | High institutional SFR ownership; investor-heavy market; higher turnover costs |
| Knoxville | 9–11% | $85–$170/unit | 50–75% of 1 month | UT Knoxville student housing; annual lease cycle; growing non-student market |
| Chattanooga | 9–11% | $85–$165/unit | 50–75% of 1 month | Outdoor economy + Volkswagen plant; growing remote-worker tenant base |
| Clarksville | 10–12% | $75–$150/unit | $400–$700 flat | Fort Campbell military; high PCS turnover drives premium fee structure |
| Murfreesboro | 9–10% | $95–$185/unit | 75% of 1 month | MTSU presence; fast-growing Nashville suburb; active investor market |
| Franklin | 8–9% | $115–$220/unit | 75% of 1 month | Williamson County; high-income suburb; top-rated schools; low vacancy rate |
| Johnson City | 10–12% | $70–$140/unit | $350–$600 flat | ETSU; Tri-Cities market; lower rents require higher % for PM profitability |
| Jackson | 10–12% | $65–$130/unit | $350–$575 flat | West Tennessee secondary market; modest rents; smaller firm landscape |
| Hendersonville | 9–10% | $100–$190/unit | 75% of 1 month | Nashville exurb on Lake Watauga corridor; family SFR market; stable tenancy |
What Drives Property Management Costs in Tennessee
- ✓ No state income tax fuels massive investor influx into Nashville. Tennessee’s absence of a state income tax (one of only nine states) has made it one of the top destinations for out-of-state real estate investors from California, Illinois, New York, and New Jersey. This wave of investor capital has funded a highly professionalized PM industry in Nashville that competes aggressively for management contracts, suppressing fees to 8–10% even as Nashville rents have climbed dramatically since 2015.
- ✓ Landlord-friendly laws reduce compliance burden across the board. The Tennessee Uniform Residential Landlord and Tenant Act (TURLTA) provides a clear, predictable framework with no statewide rent control and no just-cause eviction requirement. Tennessee’s unlawful detainer process is streamlined: after a pay-or-quit notice, landlords can file for possession quickly, with uncontested cases often resolving in 3–5 weeks. Lower compliance overhead means lower operating costs for PM firms — and more competitive pricing for landlords.
- ✓ Fort Campbell drives Clarksville’s elevated fee structure. Clarksville is home to Fort Campbell, one of the largest U.S. Army installations by personnel (101st Airborne Division). Military PCS (Permanent Change of Station) moves generate continuous turnover — lease breaks, re-leasing cycles, and unit reconditioning every 1–3 years. Property managers price this turnover risk into their base fee, resulting in 10–12% rates that are among the highest in the state.
- ✓ TREC affiliate broker license caps PM supply and maintains fee floors. The Tennessee Real Estate Commission (TREC) requires an affiliate broker license to manage property for compensation. This barrier prevents fee compression below roughly 8% even in Nashville’s most competitive submarkets, as licensing costs, continuing education requirements, and E&O insurance establish minimum operating costs that must be recovered through the management fee.
- ✓ University markets add annual lease cycle workload. Knoxville (UT) and Johnson City (ETSU) see concentrated turnover tied to the academic calendar. Near-simultaneous May/August move-outs mean property managers face intense workload peaks. Firms managing student-adjacent housing often build higher placement fee risk into their structure or charge higher base percentages to compensate for the annual re-leasing effort.
- ✓ Franklin and Hendersonville attract high-income, low-turnover tenants. Nashville’s wealthiest suburbs — Franklin (Williamson County) and Hendersonville — have above-average rents, top-rated school districts, and tenant pools with higher incomes and longer average tenancy. Higher gross rents per unit allow PMs to charge 8–9% and still generate sufficient per-unit revenue; lower turnover reduces annual placement fee income but also reduces workload, creating a structurally stable and profitable market segment.
Tennessee Landlord-Tenant Law: What Property Managers Must Know
PM Licensing Requirement
The Tennessee Real Estate Commission (TREC) requires an affiliate broker license to manage residential property for compensation. Property managers must hold a TREC affiliate broker license or work under a supervising principal broker. Owners managing property they personally own are exempt from licensing. Unlicensed property management for compensation violates Tennessee real estate law and may result in civil penalties.
Key Statute: TURLTA
The Tennessee Uniform Residential Landlord and Tenant Act (TURLTA) governs most residential tenancies in Tennessee (counties with populations over 68,000). TURLTA covers landlord habitability obligations, tenant rights, security deposit rules, and termination procedures. Counties below the population threshold follow older common law rules. Tennessee has no statewide rent control and does not permit local rent control ordinances.
Security Deposit Rules
Tennessee has no statutory cap on the security deposit amount — landlords and tenants may agree to any amount in the lease. Deposits must be held in a separate bank account and landlords must provide written notice of the depository institution. Landlords must return deposits within 30 days of move-out with an itemized deduction statement. Failure to comply forfeits the right to retain any portion of the deposit.
Lease Termination Notices
Under TURLTA, landlords must provide 30 days’ written notice to terminate a month-to-month tenancy. Fixed-term leases expire at the end of the lease term with no additional notice required. Tennessee has no just-cause eviction requirement — landlords may decline to renew a lease for any reason not prohibited by fair housing law, including simply choosing not to continue the tenancy.
Unlawful Detainer Process
Tennessee uses an unlawful detainer proceeding filed in General Sessions Court. For non-payment, landlords must serve a 14-day pay-or-quit notice under TURLTA (or a shorter demand at common law in smaller counties). After filing, a hearing is typically set within 15–30 days. Uncontested cases often result in a judgment for possession at the initial hearing. Total timeline for non-payment cases averages 3–6 weeks — among the more efficient in the Southeast.
Late Fees and Entry Rules
Tennessee does not cap late fees by statute — the parties may agree to any reasonable amount in the lease. TURLTA requires landlords to provide at least 24 hours’ advance written notice before entering a dwelling unit for repairs or inspections during normal business hours (T.C.A. §66-28-403). Emergency entry to address immediate safety hazards is permitted without advance notice. Repeated unreasonable entry without notice can constitute a tenancy breach by the landlord.
Self-Managing in Tennessee: What the Numbers Look Like
A Nashville landlord with three SFR homes renting at $2,000/month each pays $480–$600/month in management fees at 8–10%. That’s $5,760–$7,200 per year. Tennessee’s landlord-friendly laws and straightforward eviction process mean self-managing doesn’t require the compliance expertise that California or New York demands — and LeaseBase provides the tools to handle rent collection, maintenance coordination, tenant communication, and lease management without paying that annual fee.
Tennessee’s no-rent-control environment and predictable TURLTA framework mean the gap between professional management and software-supported self-management is smaller here than in almost any other state. The ROI on switching is typically realized within the first three months.
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Frequently Asked Questions: Tennessee Property Management Fees
What is the average property management fee in Tennessee?
Tennessee property managers typically charge 8–10% of monthly rent in the Nashville metro (including Franklin and Murfreesboro), 9–11% in Knoxville, Chattanooga, and Memphis, and 10–12% in smaller markets like Clarksville, Jackson, and Johnson City. Nashville’s investor-driven competition pushes rates toward the lower end; military and smaller markets push toward the higher end. Statewide, Tennessee sits at or slightly below the national 8–10% median.
Does Tennessee have rent control that affects property management complexity?
No. Tennessee has no statewide rent control, and state law preempts local governments from enacting rent control ordinances. No Tennessee municipality has rent stabilization in any form. Property managers in Tennessee have zero rent tracking, renewal cap calculation, or stabilization disclosure requirements — a major reason fees stay at the lower end of the national range even as Nashville rents have risen dramatically.
Does a property manager in Tennessee need a license?
Yes. The Tennessee Real Estate Commission (TREC) requires an affiliate broker license to manage residential property for compensation. Property managers must hold a TREC affiliate broker license or operate under a supervising principal broker. Owners managing their own properties are fully exempt from this requirement. Engaging in property management for compensation without a license is illegal in Tennessee.
How does Tennessee’s no-income-tax status affect property management fees?
Tennessee’s absence of a state income tax has attracted enormous investor capital — particularly to Nashville and Knoxville — from higher-tax states like California and Illinois. This investor influx created a highly competitive property management industry with many firms competing for management contracts. More competition means lower fees: Nashville’s 8–10% range reflects a market with dozens of competing professional PM firms, compared to smaller states where 10–12% is standard for similarly-sized metros.
What does a tenant placement fee cover in Tennessee?
A tenant placement fee in Tennessee typically equals 50–100% of one month’s rent and covers advertising the vacancy, showing the unit, screening applicants (background and credit checks), drafting the lease, and coordinating move-in. This fee is separate from the ongoing monthly management fee. In Nashville and Franklin, placement fees are typically 75–100% of one month’s rent; in Clarksville, Jackson, and Johnson City, flat fees of $350–$700 are more common due to lower rent levels.
Is self-managing in Tennessee easier than in other states?
Yes, considerably so. Tennessee’s lack of rent control, TURLTA’s clear statutory framework, the absence of a just-cause eviction requirement, and the streamlined unlawful detainer process make self-management far more accessible than in regulatory-heavy states. Tennessee landlords don’t need to track rent caps, file annual housing disclosures, or navigate complex compliance calendars — all of which can make California or New York self-management genuinely difficult without professional help. LeaseBase handles the operational layer that remains.
Property Management Fees by State: Complete Guide
See what property managers charge in every major U.S. market — plus state law summaries and self-managing alternatives.