A Tennessee property management agreement should clearly identify the parties, property, services, fees, maintenance authority, accounting procedures, insurance responsibilities, security-deposit process, and termination terms. It should also explain how the manager will comply with applicable Tennessee law, including TCA § 66-28-302, and how the agreement protects your rental income when interest rates, vacancy costs, and Fort Campbell PCS activity affect your investment.
If you own a rental in Clarksville, Montgomery County, or another Tennessee market, the agreement should be specific enough that you can understand what your manager may do without asking for approval and what decisions still require your written consent.
What parties and properties should the agreement identify?
Start with the basics:
- The legal name and address of the property owner
- The legal name, business address, and license information of the management company
- The name of the firm’s principal broker, when applicable
- The complete property address and description
- Any included appliances, furnishings, garages, storage areas, or outbuildings
- The effective date and initial contract term
- The renewal process and notice requirements
If you own more than one property, list each property individually or attach a schedule that clearly identifies every home covered by the agreement. Do not rely on a vague phrase such as “all properties owned by the client.”
The agreement should also state whether the manager is acting as your exclusive property manager, leasing agent, or both. Read Haus’s Clarksville property management guide for Tennessee landlords for a broader overview of the responsibilities involved.
What services should the manager provide?
A useful agreement should describe the manager’s responsibilities in practical terms. Services may include:
- Rental-rate analysis and pricing recommendations
- Marketing and advertising
- Applicant communication and property showings
- Tenant screening under written, consistently applied criteria
- Lease preparation and execution
- Rent collection and late-payment notices
- Maintenance request intake and vendor coordination
- Property inspections
- Lease renewals
- Move-in and move-out documentation
- Owner accounting and monthly statements
- Tenant communication and lease enforcement
The agreement should distinguish included services from optional or separately billed services. For example, routine maintenance coordination may be included in the monthly fee, while court appearances, renovation supervision, eviction coordination, or extensive insurance-claim support may carry additional charges.
How should management, leasing, and renewal fees be explained?
Your agreement should define every fee, when it is earned, and how it is calculated.
Monthly management fees
Clarify whether the fee is:
- A percentage of collected rent
- A percentage of scheduled rent
- A flat monthly amount
- Charged during vacancy
- Applied to late fees, pet fees, utility reimbursements, or other tenant payments
The difference between collected rent and scheduled rent can materially affect your net income. A fee based on collected rent may not apply when the property is vacant or rent remains unpaid. A fee based on scheduled rent may continue regardless of collection.
Leasing or tenant-placement fees
A leasing fee may cover rental pricing, marketing, inquiries, showings, screening, lease preparation, and move-in coordination. The agreement should state whether the fee is a flat amount, a percentage of one month’s rent, or another formula.
Ask whether professional photography, advertising, screening, lease preparation, and the initial inspection are included. You can compare these expenses with the broader fee considerations discussed in Haus’s Clarksville property management fee guide.
Renewal fees
Renewal fees should explain:
- Whether renewals are included in monthly management
- Whether the fee applies every year
- Whether a fee applies when rent changes
- Whether month-to-month conversions are treated differently
- Whether the manager performs a market-rent review before renewal
A clear renewal policy helps you budget for recurring costs and evaluate whether retaining a qualified tenant is financially preferable to a turnover.
How should maintenance authority and spending limits work?
Maintenance language is one of the most important sections of the agreement. It should state how much the manager may spend without obtaining your approval.
For example, the agreement might establish:
- A routine-repair approval limit
- A separate emergency-repair authority
- A requirement to obtain estimates above a stated threshold
- A process for contacting you when a repair exceeds the limit
- A definition of an emergency
- A procedure for work required to protect health, safety, or the property
- A policy for owner-selected vendors
- Any maintenance coordination fee or vendor markup
An agreement should not simply say the manager may make “necessary repairs.” That language can create uncertainty about what is authorized and who pays.
You should also understand whether the manager can approve HVAC, plumbing, electrical, water-intrusion, or security repairs immediately when delay could cause additional damage. Ask how you will be notified, how photographs and invoices are delivered, and whether the manager checks completed work.
What reserve funds should the owner maintain?
Many managers require an owner reserve or operating balance. The agreement should state:
- The required minimum reserve
- When the reserve must be funded
- Whether the manager may use it for approved repairs and expenses
- How the reserve is replenished
- Whether the manager may pause non-emergency work when funds are unavailable
- What happens when rent proceeds are insufficient
A reserve can help you avoid delays when a property needs an urgent repair, especially during a vacancy. Your reserve policy should account for routine maintenance, turnover, appliances, HVAC service, landscaping, and larger capital needs.
How should trust accounts and security deposits be handled?
The agreement should clearly separate operating funds, owner funds, rents, and tenant security deposits. It should identify:
- Which account receives rent
- Which account holds security deposits
- Whether funds are maintained in a trust or escrow account
- How deposits are recorded by property and tenant
- When funds are deposited
- Who may authorize deductions
- How funds are transferred after move-out
- What records the owner receives
In Tennessee counties where the Uniform Residential Landlord and Tenant Act applies, TCA § 66-28-301 addresses security-deposit account requirements and related disclosures. The management agreement should require procedures that remain consistent with the law applicable to the property’s location.
The manager should also use move-in and move-out documentation, photographs, invoices, and itemized accounting when evaluating deductions. Ordinary wear and tear should not be treated as tenant damage.
For additional context, review Haus’s Tennessee owner-disclosure guidance under TCA § 66-28-302.
Required owner-disclosure line: All active Tennessee lease agreement documentation should include the true name and address of the property owner or authorized management agent, together with the required management and maintenance contact information, as applicable under TCA § 66-28-302.
As of 2026, managers should also review the Tennessee Real Estate Commission’s property management requirements and FAQs, including licensing, supervision, and handling of funds belonging to others.
When should owners receive statements and disbursements?
Your agreement should establish a predictable accounting schedule. It should explain:
- When rent is considered collected
- When management fees and expenses are deducted
- The expected owner-disbursement date
- How weekends, holidays, returned payments, and banking delays affect timing
- What happens when the property account has insufficient funds
- How statements are delivered
- What records are available through the owner portal
- How corrections and disputed charges are handled
A monthly statement should generally show rent received, fees, maintenance invoices, other expenses, reserve balances, security-deposit activity when appropriate, and the amount disbursed to you.
This detail is especially important for out-of-state owners who need reliable financial visibility without visiting Clarksville or the property in person.
What insurance requirements belong in the agreement?
The agreement should identify the insurance coverage you must maintain, such as:
- Property or dwelling coverage
- General liability coverage
- Loss-of-rent coverage
- Flood or other location-specific coverage
- Umbrella coverage when appropriate
- Workers’ compensation requirements for owner employees or contractors
Ask whether the management company must be listed as an additional insured or interested party, subject to the insurer’s requirements. The agreement should also state who files claims, who coordinates emergency mitigation, and whether insurance-related administrative work creates an additional charge.
Insurance does not replace proper maintenance. A manager should still document hazards, notify you of significant conditions, and coordinate appropriate repairs.
How should the agreement address Fort Campbell PCS turnover?
Clarksville property management agreements should account for Fort Campbell’s military rental market. Your manager should explain how the company handles:
- PCS-related move-out timing
- Military clauses and qualifying orders
- Servicemember lease-termination procedures
- Mid-lease vacancies
- Rush make-ready work
- Summer turnover volume
- Rental pricing during peak PCS periods
- Communication with relocating tenants
A military clause should be reviewed carefully and applied consistently. The agreement should assign responsibility for verifying documentation, calculating lawful charges, scheduling inspections, and marketing the property after a qualifying move-out.
Out-of-state owners often need additional support after they move following a Fort Campbell tour. A local manager can coordinate vendors, document condition, prepare the rental, and communicate with prospective tenants while the owner is stationed elsewhere or has relocated to another state.
What does the agreement need to say about insurance, termination, and records?
The termination section should state:
- The initial term
- Required notice, such as 30, 60, or 90 days
- Whether early termination fees apply
- How active leases are handled
- Who completes pending repairs and inspections
- How keys, records, funds, and deposits are transferred
- Whether the owner owes fees after termination for a tenant placed during the management term
- How final statements are prepared
The agreement should also address liability, indemnification, fair-housing compliance, vendor relationships, confidentiality, dispute procedures, and Tennessee governing law. Have a qualified attorney review any agreement that does not fit your property, ownership structure, or investment plan.
What should Tennessee owners ask before signing?
Before signing, ask the manager to answer these questions in writing:
- Is the monthly fee based on collected rent or scheduled rent?
- What leasing and renewal charges apply?
- What maintenance amount can be approved without my consent?
- What counts as an emergency?
- Is a reserve required?
- When will I receive statements and disbursements?
- How are security deposits held and documented?
- Which insurance policies must I maintain?
- How are PCS moves and military clauses handled?
- What notice is required to terminate the agreement?
Freddie Mac’s Primary Mortgage Market Survey, dated October 1, 2026, reported a national average of 7.28% for a 30-year fixed mortgage and 6.60% for a 15-year fixed mortgage. These rates are not a direct measure of rental performance, but they reinforce why owners should protect net income through accurate pricing, controlled maintenance costs, limited vacancy, and transparent management fees.
Randy Whetsell of Haus Realty & Management, a Tennessee Silver Level Veteran Ready Business for 2025–2026, puts the focus on clarity:
“A strong management agreement should remove uncertainty before the first tenant call, repair request, or owner statement. When responsibilities, approval limits, and financial procedures are clear, owners can make better decisions and tenants receive more consistent service.”
If you own a rental property in Tennessee or Southern Kentucky, contact Haus for a rental-rate and management evaluation. Please provide the property address, current lease status, approximate rent, maintenance history, and your ownership goals so the evaluation can be tailored to your situation.
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