Landlords in Tennessee must comply with state statutes regarding tenant screening, including background checks and application fees. Failure to adhere can result in legal penalties.
Permitting, Zoning, or Statutory Basis
Tennessee’s tenant screening laws are governed by the Tennessee Landlord and Tenant Act (Title 47, Chapter 16). This act outlines specific requirements that landlords must follow when conducting tenant screening and collecting application fees.
Tenant Screening Requirements
According to Tennessee law, landlords are required to conduct a background check on any tenant before renting. This includes checking for criminal records, credit history, and other relevant information to ensure the tenant’s suitability for the property. Landlords must also verify the tenant’s identity and proof of income.
Tennessee Code Annotated § 47-16-302(a) states:
A landlord shall not rent any dwelling to any person unless the landlord has conducted a satisfactory investigation of the tenant’s credit history, criminal record, and other relevant information.
Application Fee Limits
Tennessee law imposes limits on the amount of application fees that landlords can charge. Landlords are not permitted to collect more than $50 as an application fee. This fee is intended to cover the costs associated with conducting a tenant screening, such as background checks and credit reports.
Tennessee Code Annotated § 47-16-302(c) states:
A landlord may not charge an applicant for any application fee in excess of fifty dollars ($50).
Lease Clauses, Notice Periods, and Timing Requirements
When drafting lease agreements in Tennessee, landlords must include specific clauses that address tenant screening and application fees. These clauses should be clear and unambiguous to avoid any disputes.
Lease Clause Requirements
Lease agreements must include a clause that outlines the application fee policy. This clause should specify the amount of the fee, the purpose for which it is collected, and any conditions under which it can be refunded.
Example Clause:
The Tenant agrees to pay an application fee of $50 at the time of lease signing. This fee is non-refundable and covers the costs associated with tenant screening.
Notice Periods
Landlords must provide tenants with a notice period before terminating the lease or evicting them. This notice period is typically 30 days, but it can be extended in certain circumstances.
Tennessee Code Annotated § 47-16-302(b) states:
A landlord shall not terminate a lease or evict a tenant without providing the tenant with thirty (30) days’ notice in writing.
Defensible Record-Keeping & Compliance Checklist
To ensure compliance with Tennessee’s tenant screening laws, landlords must maintain accurate and up-to-date records of all tenant screening activities. This includes keeping copies of application fees, background check reports, and lease agreements.
Compliance Checklist
- Conduct Background Checks: Verify the tenant’s credit history, criminal record, and other relevant information.
- Charge Application Fees: Collect no more than $50 as an application fee.
- Include Screening Clauses: Ensure lease agreements include clear clauses regarding application fees and tenant screening.
- Provide Notice Periods: Give tenants 30 days’ notice before terminating the lease or evicting them.
- Maintain Records: Keep copies of application fees, background check reports, and lease agreements.
By following these guidelines and maintaining compliance with Tennessee’s tenant screening laws, landlords can avoid legal penalties and ensure a smooth leasing process.
This guide provides a comprehensive overview of tenant screening and application fee rules in Tennessee, ensuring landlords are aware of their legal obligations.