Rental Property MUST be shown by agent in TN?

Question

Hello BP,

I am looking at buying my first property a Quadplex in the Clarksville, TN area. I was speaking to the listing agent/property manager and she informed me that in the state of Tennessee a real estate agent must show a rental property (which is why they charged a new tenant fee for every placement). Even if I were to manage the property myself, I would have to pay a real estate agent to show the property to perspective tenants.

I can't seem to find anything on this. Does anyone with a bit more experience have any insight on this that they would be willing to share? Thank you for any help.

Richard

John Santero · Answer

just to clarify. An owner/operator can show/negotiate and rent their properties. A PM company needs a lic agent to negotiate the rent but can show the property with an UN-licenaced person. they are not allowed to negotiate. They can make a phone call and ask- but not negotiate themselves,

Richard Ryan · Answer

@Carrie Carlton I am quite new at this but I have been watching this area for several months and running numbers on all sorts of properties. The rents for multifamiles seem to be held down under about 950 with many of the buildings in the area renting in the 600-700 dollar per unit range. There are not a lot of multifamilies that will cash flow at the price they are selling for. The building I am looking at is a new construction in a neighborhood of newly built townhomes that is about halfway through development. If you are interested, I could give you more info.

The picture for single families looks a lot better. From some of the houses I have looked at you could cash flow 100-180 dollars per door. I just want to house hack when I get in the area so I am not going this direction initially.

@John Montgomery probably has a MUCH better grasp on the area however.

Carrie Carlton · Answer

I agree that this is not true. I was looking to Clarksville to invest in next. There seems to be a lot of supply for sale. What do rents typically go for there? Thanks!

Richard Ryan · Answer

Thank you all for clearing that up. It didn't sound right when I heard it.

John Montgomery · Answer

I invest in Clarksville.  You're allowed to manage/show your own rentals.  Take care and good luck.

Keith Smith · Answer

I live in TN and never heard of that. I have a couple of rentals I manage myself and have read everything I could on TN landlord tenant laws but haven't seen anything about that.

Richard Ryan · Answer

@Christopher B That is how I interpreted what I read. Just to clarify if I want to landlord I can show the units and manage them myself; however, if I hire a property manager the rentals must be shown by a licensed broker.

I am moving to the area in early June and it makes more sense to house hack then to pay my own mortgage!

Christopher B. · Answer

In TN if you hire an outside mgmt company they must be a licensed broker. Managing yourself from afar and allowing grandma to show the unit is ok.

Why Clarksville?

Rental Property MUST be shown by agent in TN?

Most Popular Reply