Property Management Fees Tennessee

What property management fees do Tennessee landlords pay? Whether you’re looking to turn your business into a passive income stream or free up time to grow your investments, this question is key. But the answer isn’t black and white.

Since most property management companies charge for services on an as-needed basis, your bill may vary from month to month. Whatever your investment goals are, solid budgeting is a must — and unexpected costs can disrupt your cash flow.

To help you get an idea of what to expect, we’ll dive deep into the billing structures and average costs of property management fees in Tennessee. We’ll also cover how free property management software solutions like TurboTenant can help you enjoy the benefits of property management without sacrificing a percentage of each rent payment.

Common Costs 

Some property management companies offer flat-rate pricing, making budgeting easy. However, most companies charge a monthly management fee plus additional costs based on the services provided. Let’s review a breakdown of property management fees in Tennessee and the services they include:

Our research on property management fees in Tennessee shows:

• Many companies charge the same fees at similar price points.
• You’ll see the greatest variation when comparing prices in different cities.
• Most rental managers have a one-time account setup charge, followed by a monthly management rate, plus additional expenses.

These are the management expenses you can expect in the Great Smoky Mountains state:

Monthly Management Fees

The average cost of monthly management in Tennessee is 8%–9% of 1 month’s rent. It covers daily tasks and administrative duties, including monthly rent collection, leasing management, and tenant communication.

Tenant Placement

While some companies opt for a flat rate, most charge 75% of 1 month’s rent for tenant placement. It compensates the company for advertising the listing, showing the rental property, and drafting the new lease agreement. They’ll also handle rental applications, tenant screening, and communicating with renters.

Annual Inspection Costs

In Tennessee, most companies charge between $75 and $200 per inspection. They oversee the annual safety and unit condition inspection, as well as move-in/move-out inspections. If your local area requires additional evaluations, such as those for the foundation, sewer and water, managers take care of those, too.

Maintenance

Expect 10%–25% markup of the vendor’s invoice when working with a property management company. They handle the maintenance request from start to finish, and this charge compensates them for their time and effort. Managers respond to tenants on your behalf, hire a contractor, coordinate the repair, and oversee the work.

As the final step, they’ll also submit the vendor invoice to the landlord and help coordinate the payment.

Lease Renewal

Most companies charge a flat rate averaging $190 for lease renewals. However, some companies offer this service for a flat rate instead.

When a tenant’s lease term nears the end, managers reach out to them to ask about their plans. If the tenant wants to stay in the unit, the manager renews the rental agreement and has the landlord and tenant sign the updated lease.

Eviction Costs 

Eviction charges typically range from $500 to $1,000, but can cost more depending on the specific case. In addition to the rental manager’s payout, landlords are also responsible for covering any legal costs.

In exchange for the fee, managers attend court for you, file the case’s paperwork, and ensure the eviction goes smoothly at the property.

Vacancy Charges

Most property management companies charge $50 per month for each vacant unit. When your property sits empty, managers keep the space clean, well-maintained, and secure. They visit the property, coordinate regular cleaning, and schedule repairs as needed.

Costs in Popular Tennessee Cities 

In Nashville, Memphis, Knoxville, Chattanooga, and Clarksville, the average price for general management is 8%–12% of the monthly rent. Here’s an overview of other common costs in these five cities.

Nashville

In Nashville, many companies charge up to 100% of 1 month’s rent for tenant placement. They charge a maintenance markup of 10%–25%, and $200–$500 for lease renewals.

Memphis

Most companies charge 50%–100% of 1 month’s rent for tenant placement in Memphis. They apply a 10%–25% markup on the contractor’s invoice for repairs, and lease renewals typically land around $200.

Knoxville

Knoxville’s median price for tenant placement is 50% of 1 month’s rent. For maintenance, companies add 5%–15% to the repair bill. Lease renewals typically cost between $150 and $200.

Chattanooga

Chattanooga’s average rate for tenant placement is 50%–75% of 1 month’s rent. The most common maintenance markup amount is 5%–15% of the vendor’s invoice. Managers usually charge a flat rate of $200–$500 for lease renewals.

Clarksville

The cost of tenant placement in Clarksville is typically 50%–100% of 1 month’s rent. The manager’s maintenance markup is usually an additional 10%–25% of the vendor cost. Most landlords pay 25%–50% of 1 month’s rent for lease renewals.

The Final Word

Whether you’re renting out a high-rise condo in Downtown Nashville or a cozy cottage in Knoxville, hiring a property manager adds a range of costs to your monthly expenses. You know you’ll need to allocate a portion of your budget for the monthly management rate. However, the additional charges aren’t as easy to plan for since they aren’t consistent from month to month.

If you’re interested in the benefits of offloading some work, but you’re not ready for unpredictable billing, consider your other options. For example, you can self-manage with TurboTenant – completely online and free of charge for critical jobs like:

• Advertising your property.
• Collecting rent.
• Screening tenants.
• Collecting rental applications.
• Maintenance management.
• Tenant communication.

Then, for less than the cost of renewing a lease in many Tennessee cities, TurboTenant’s Premium tier offers:

• State-specific lease agreements.
• Unlimited e-signatures.
• Income analysis for screening reports.

Sign up today to start landlording better with TurboTenant’s intuitive toolset.

Tennessee Property Management Fees FAQs