State Specific Question About: TENNESSEE (TN)

My property manager has deducted a management fee from a deposit that was forfeited due to damages to the property. Since this was not rent they are calming all income gets a fee. Can they do that? My other property managers in other states do not.

Hi Sly..

Well the 1st question is what does your mgt agreement say...

typically the fee is a % of income on the property.. and sometimes expressed as a % of the rent recieved or agreed by you and the pm..

Of for smart PM.. is is a fee say at 8%.. and is for representation not tied to occupancy..

Just like you pay and attorney or gardener or plumber.. you pay them for thier service..

So the amount is agreed. but does not rely on the placce being rented..

Let us know what your agreement says..

Thanks for your quick response. The management agreement only states

"For Management 8%". It does not define "management". So I guess they are right in defining this as "income".

thank you,

How can a deposit be classified as income, it is not yours,to spend but to hold in case of damage, and then it is to be returned...

Which is classified as a refund of a deposit.