Over 30 percent of households in Tennessee were renters as of 2019. It's a booming market if you're looking to invest.
You want to ensure you have the right people living at your properties - but you also need to ensure you're on the up and up legally.
Let's go through the tenant screening laws in Tennessee you need to know about.
Fair Housing Laws
Landlords must work within the framework of federal fair housing laws. These laws protect tenant rights and prohibit discrimination based on certain factors. These include things race, color, religion, sex, national origin, familial status, and disability.
Tennessee also has its own fair housing laws that protect additional groups. The Tennessee Human Rights Act governs these rules. Different counties or cities may have additional protections. So, it's important to examine the law carefully to ensure you're compliant with the law.
Rules About Money
There are also rules about finances when it comes to screening out tenants. You may be tempted to set high barriers to entry to ensure that all prospective tenants will be able to pay rent. But there are often laws preventing landlords from doing so.
Tennessee law does not limit security deposit amounts. Landlords are generally allowed to collect a security deposit. The deposit must be returned to the tenant within 30 days after the termination of the lease or the tenant's move-out. Any lawful deductions for damages or unpaid rent can be taken from the deposit.
There are also no specific limits on the amount landlords can charge for rental application fees in Tennessee. However, the fees must be reasonable. They should only cover the actual costs incurred during the tenant screening process.
Confidentiality
Landlords in Tennessee are generally required to handle tenant screening information with care and protect the privacy of applicants. This means taking appropriate measures to safeguard the information collected during the screening process. That's especially important if you plan to run tenant background checks.
Landlords should only disclose tenant screening information on a need-to-know basis. Sharing this information with unauthorized individuals or entities may violate privacy laws. That can expose the landlord to legal consequences.
Tenant screening information should be stored securely to prevent unauthorized access. Once the information is no longer needed, landlords should dispose of it properly to avoid the risk of identity theft.
If you're inexperienced with tenant screening, it's best to work with professionals. A good rental property management company knows how to conduct tenant screenings correctly and without violating any Tennessee rental laws.
What You Can Consider
There may be limitations on what information you can consider when you're screening tenants.
Landlords can consider an applicant's eviction records during the tenant screening process. However, it's important to be aware that some cities in Tennessee have local ordinances that limit the consideration of certain types of eviction records.
Tenant Screening Laws in Tennessee: Now You Know
There's a lot to keep track of when it comes to tenant screening laws. You'll need to do a lot of research to ensure you're following the law - or enlist professional help.
Do you need help with property management in the Nashville area? We've got you covered. Contact Green Tree Property Management ASAP.
