How to Fire Your Property Manager in Tennessee

A step-by-step guide for Tennessee landlords switching property managers, covering written notice, broker escrow accounts, tenant deposits and what to collect before you cut ties.

Last updated September 23, 2026

Missed repairs, slow replies, a statement that never adds up. Most landlords wait too long to make the call. Tennessee gives you less of a hard deadline than some states on the handover, so the pressure you apply comes from your contract and from the license law that governs your manager's escrow account.

Here is how to make the switch without losing a deposit, a tenant or a month of rent.

Step 1. Read your management agreement

Your contract decides how you exit. Tennessee has no statute that sets a notice period for ending a property management agreement, so every deadline in this step comes from the paper you signed. Look for four things.

Notice period. Thirty days' written notice is the common term.
Termination fee. Some agreements charge one, some do not.
Leasing fee clawbacks. Check what you owe for tenants the manager placed.
Who "owns" the tenant relationship. Some agreements try to charge a fee if you keep a tenant they found.

If the manager broke the agreement, by ignoring repairs or mishandling money, you may be able to end it sooner. That is a question for a Tennessee attorney.

Step 2. Send written notice

Put it in writing, by email and by any method your agreement names. State the end date, ask for a full handover on that date, and list what you expect back (see Step 4).

Keep the tone flat and factual. You want your records, not an argument.

Step 3. Know the escrow and accounting rules

Your manager is a licensed broker or works under one, and broker money rules are your leverage.

A principal broker has to hold money belonging to others in a separate escrow or trustee account, and rent and lease money gets its own account apart from the sales escrow account. Commingling is prohibited outright (Tenn. Comp. R. & Regs. 1260-02-.09). The broker keeps records of every deposit and withdrawal for at least three years, showing who paid in, the dates and who got paid out (T.C.A. § 62-13-321).

Failing within a reasonable time to account for or remit money belonging to others is grounds for the Tennessee Real Estate Commission to suspend or revoke a license (§ 62-13-312(b)). That sentence is the one to quote in your notice.

Tennessee sets no fixed number of days for a broker to hand your files and funds back. Put a date in your own notice, keep proof of what you asked for, and file a complaint with the Commission if the money does not come.

Step 4. Collect everything

Ask for all of this before the end date.

Security deposits for every tenant, with the amount held for each one
The escrow ledger showing rents collected, fees taken and what is still owed to you
Signed leases, renewals and addenda
Move-out inspection lists and any signed damage listings
Tenant contact details and payment history
Open maintenance requests, vendor contacts, invoices and warranties
Keys, fobs, garage remotes and codes
Year-to-date income and expense reports for your taxes

Step 5. Move the security deposits

Tennessee deposit law puts a duty on you the day the money lands in your hands. Deposits go into an account used only for deposits at a bank or lending institution regulated by the state or the federal government (§ 66-28-301(a)). The tenant has to be told where that account is, though not the account number (§ 66-28-301(h)).

Open the account before the handover date so the funds have somewhere to go. Then send each tenant a short written notice naming the new account location.

Get this wrong and the penalty is total. A landlord who did not hold the deposit in a proper account and did not provide the damage listing keeps none of it (§ 66-28-301(c)).

One thing to sort out at handover. Ask the outgoing manager for the written notice of inspection rights they sent each tenant, and for any signed damage lists from past move-outs. Those documents decide what you can charge against a deposit later.

Step 6. Tell your tenants

Tenants care about three things. Where to pay rent, who to call for repairs, and whether their deposit is safe. Send one clear message covering all three, dated, with the day the change takes effect.

In counties under the Uniform Residential Landlord and Tenant Act, you owe a written disclosure naming the agent who manages the property, the person who accepts service of process for the owner, and a maintenance phone number, email address or online portal (§ 66-28-302). Taking over management changes all of that, so update it in writing.

Step 7. Take over the day-to-day

Line up your vendors, set up rent collection, and get a maintenance line that picks up at 2am. This is where most landlords end up back where they started, holding a phone that never stops ringing.

Who can manage property for pay in Tennessee

Anyone who leases or rents property for another person for a fee, or collects rents for another, falls inside the definition of a broker (§ 62-13-102). A single act of it without a license violates the chapter (§ 62-13-103).

Owners are exempt for their own property (§ 62-13-104). A resident manager working for a broker or an owner is exempt too, if the job stays inside supervision, showing units, arranging leases and handling deposits, with no negotiating of deposit amounts or rental terms.

So you can manage your own rentals in Tennessee with no license. The person you pay to do it for you needs one. Check any new manager's license on the Commission's site before you sign.

Your switching checklist

Read the agreement for notice, fees and clawbacks
Send written notice with an end date and a list of what you want back
Quote the escrow and accounting rules if the money is slow
Collect deposits, ledgers, leases, inspection lists and keys
Open a deposit-only account and tell each tenant where it is
Update the management and maintenance contact disclosure
Tell tenants where to pay and who to call

Switch to Taz

Taz is an AI property manager built for landlords who have been let down before. It answers tenants day and night, routes repairs to vendors, sends rent reminders and keeps every record in one place, for a flat monthly price per door instead of a cut of your rent. See how Taz works.

Where this guide says a state has no rule on something, that means we found no statute setting one, which is not the same as none existing. Local ordinances and court practice can add requirements. Confirm anything you plan to rely on.

This guide is general information, not legal advice. Your management agreement and your specific facts matter. Talk to a Tennessee attorney before ending a contract. Last checked September 2026.