When you purchase an investment property and act as a landlord, your first task is finding a suitable tenant. Once you do, you must have them sign a lease that protects your interests while complying with landlord-tenant laws in Tennessee.
Make sure the rental lease for your residential property addresses these important considerations.
The lease should cover the amount of rent as well as acceptable forms of payment. Set a deadline for the monthly rent payment. Tennessee gives tenants a grace period of five days, not including Sundays and legal holidays, before a landlord can pursue eviction.
Tennessee law allows late fees for late rent only when you put this charge in the lease. The late fee can be up to 10% of the past-due rent amount.
Other lease considerations
Your Tennessee lease should cover whether your rental allows the tenant to have a pet. If you plan to allow pets, you must specify the types of allowed pets and the pet deposit amount.
Your lease can require the tenant to give you notice if staying out of the home for longer than one week. Otherwise, you can hold the tenant responsible for damages related to the absence.
To prevent subletting of the property, the lease must specifically prohibit assignment and subleasing. Without this type of clause in a rental agreement, Tennessee prevents landlords from withholding unreasonable permission to sublet a unit.
In addition to these terms and conditions, the lease must contain certain clauses required by state law. Tennessee mandates lead paint disclosure, security deposit information, and contact information for both the property owner and landlord or property manager.