At a Glance (TL;DR)
- License type: You need an active affiliate broker or broker license to manage someone else's property for pay.
- Governing body: The Tennessee Real Estate Commission (TREC) oversees real estate licenses across the state.
- Education: Complete 90 hours of approved pre-licensing study: 60 hours before the test and the 30-hour Course for New Affiliates before licensure.
- Exam: PSI administers national and Tennessee-specific sections, and you'll have to score 70% on each.
- Fees: Budget $63 for testing, $91 for filing, plus tuition, fingerprints, and E&O insurance.
- E&O insurance: Your policy must be active before TREC activates your license.
- Continuing education: Complete 16 hours every 2 years, including the 6-hour TREC Core Course.
Managing your own rentals can make becoming a property manager in Tennessee feel like the natural next step. The state treats that move seriously (even if you already know the day-to-day work). Once you collect rent, sign leases, or advertise homes for someone else, you’ll typically need the property management license Tennessee requires for real estate brokerage.
To help you on your licensing journey, this guide explains exactly how to become a property manager in Tennessee. Below, we’ll cover who needs a license, what you’ll need to complete, how much the process costs, and how management-focused software can help once you’re licensed and ready to go.
Duties of a Property Manager
What is on your plate when you take on someone else’s rental? The owner may hand you nearly every part of a property manager’s daily responsibilities, which include:
- Marketing the property, listing vacant units, and reviewing prospective tenants
- Collecting rent and managing owner disbursements on a dependable schedule
- Drafting, signing, and administering lease agreements and nonrenewal decisions
- Coordinating and logging maintenance requests while paying vendors on time
- Screening tenants and managing vacancies between tenancies
- Handling tenant communication, including notices, disputes, and move-in or move-out coordination
- Trust accounting and owner financial reporting for property performance and occupancy
- Conducting inspections at move-in, move-out, and other key points
- Following fair housing laws along with Tennessee’s landlord-tenant rules
Using software for property managers can save you from switching between spreadsheets, chasing down rent payments, and sorting through shuffled application paperwork.
Does Tennessee require a property management license?
Tennessee considers paid management of another person’s rental a real estate activity. Put simply, you must hold an affiliate broker or broker license when you collect rent, sign lease agreements, negotiate terms, or advertise vacancies for an owner (Tenn. Code Ann. § 62-13-102(4)).
That license covers the main work of third-party property management. Each service creates financial and legal duties to the owner and the renter, which is why the state places the work under its real estate licensing system.
However, the requirement applies when you manage someone else’s property for money. You don’t have to get licensed solely to oversee rentals you own personally.
The Tennessee Real Estate Commission (TREC) issues and maintains these licenses and can take action when someone violates the state’s real estate rules (Tenn. Code Ann. § 62-13-203).
Tennessee Property Manager License Rules
To qualify as an affiliate broker, you’ll have to meet TREC’s age, education, background, and insurance standards. Further, your principal broker (not you) must keep client money in an escrow or trustee account and hold deposit, withdrawal, and payee records for at least 3 years before you can start handling it yourself (Tenn. Code Ann. § 62-13-321).
Meet these conditions to become a property manager in Tennessee:
Age and Residency
You must be at least 18 years old.
Tennessee doesn’t impose a residency rule. You’ll need a high school diploma or equivalent and a completed Eligibility for Entitlements Verification form (Tenn. Code Ann. § 62-13-303(a)).
Pre-Licensing Education
You have to complete 90 hours of approved coursework.
For starters, you’ll take a 60-hour Basic Principles of Real Estate course before testing. You’ll then need to complete the 30-hour Course for New Affiliates before TREC issues your license. Both online and classroom options typically count when you use one of the state’s approved schools (Tenn. Code Ann. § 62-13-303(a)).
Background Check
You must submit fingerprints for a criminal history review.
Tennessee sends fingerprints through the TBI and FBI. TREC Rule 1260-01-.01(4) blocks testing and licensure for 2 years after probation, parole, a covered conviction, or release from incarceration ends, whichever comes later
The 2-year waiting period applies to felonies and misdemeanors involving the theft of money, services, or property (Tenn. Code Ann. § 62-13-303(l)).
Errors & Omissions Insurance
You must have an active E&O policy to become a property manager in Tennessee.
Errors and omissions insurance helps cover client losses from real estate mistakes. TREC’s group policy through RISC offers a compliant baseline, though you may choose qualifying private coverage. Either way, the policy can’t lapse while your license remains active (Tenn. Code Ann. § 62-13-112).
How to Get Your Tennessee Property Management License
Wondering where to start? Follow the process in order, moving from your first course to affiliation with a principal broker.
1. Complete Your Pre-Licensing Coursework
To get started, enroll in a 60-hour real estate principles course at a TREC-approved school. (You can take classes online or in person.) After passing the licensing test, you’ll need to complete the 30-hour Course for New Affiliates before TREC will approve the license.
2. Pass the Tennessee Real Estate Exam
PSI administers the affiliate broker test with national and state-specific sections. To pass, you’ll have to score at least 70% on both. Your school will send course confirmation to PSI before you schedule, and the full testing fee is $63.
3. Submit Your License Application
After you pass your exam, submit your paperwork through TREC’s CORE online application portal. Your packet should include the sponsoring principal broker’s signed certification, proof of E&O coverage, fingerprint receipt, entitlement verification form, course records, and the $91 filing fee.
State law gives you 6 months from the test date to file, while TREC’s PSI bulletin says 1 year, so file early rather than depending on the longer window (Tenn. Code Ann. § 62-13-303(d)).
4. Affiliate With an Employing Broker
An affiliate broker can’t activate a Tennessee license without joining a firm led by a principal broker. That broker will oversee your work and training (and remain responsible for you until you earn a full broker license in the future).
Want to work on your own later? You’ll need to earn a full broker license after at least 3 years of active affiliate experience and 120 approved education hours (Tenn. Code Ann. § 62-13-303(c)).
Costs and Timeline
The fixed fees on a Tennessee property management license come to $374, with tuition and fingerprinting adding variable costs on top:
- Pre-licensing coursework (90 hours): Set by the school
- PSI testing fee: $63 for the full affiliate broker examination
- TREC filing fee: $91
- Fingerprint processing: Paid to IdentoGO when you book the appointment
- E&O insurance: $220 for the base RISC group policy covering July 2026 through July 2028
As far as timing is concerned, your 90 hours of coursework will set the pace. Your timeline to becoming a property manager in Tennessee depends on the class format, study schedule, testing availability, and how quickly you gather the paperwork.
Who is exempt from Tennessee's license rules?
Tennessee’s licensing rules leave room for a few situations where you can manage rentals without a real estate license:
Property owners managing their own rentals: Owners don’t need a real estate license solely for managing their own property. The licensing rule starts when you accept payment to manage property for another owner.
Resident managers: Resident managers may also qualify for an exemption when a broker or owner hires them to oversee an apartment building, duplex, or residential complex. Their tasks can include showing units, leasing, and collecting rent or security deposits, but they can’t negotiate deposit amounts, rental rates, or lease terms (Tenn. Code Ann. § 62-13-104(a)(1)(E)).
LLCs and other entities: If you think starting an LLC may be a workaround to getting your license, be careful. The owner exception can be less clear when an entity owns the rental property (and you don’t hold title personally), so you’ll want to confirm the setup or speak with a legal professional before accepting any management fees or signing any agreements.
What happens if you manage property without a license?
Operating without the proper license can create several problems all at once, from state enforcement to lost business:
TREC action: The Tennessee Real Estate Commission may ask a court to stop the unlicensed activity and impose penalties (Tenn. Code Ann. § 62-13-109, § 62-13-203).
Criminal and civil exposure: Unlicensed practice is a Class B misdemeanor, and a person who accepted payment while unlicensed may owe an injured party one to three times the amount collected. A convicted corporation must wait 1 year before it can hold a license again (Tenn. Code Ann. § 62-13-110).
Reputational damage: Owners may end a professional relationship once they discover that a property manager was operating without a license (not to mention the liability concerns it creates for everyone involved).
Beyond the License: Starting Your Tennessee Property Management Career
A license lets you legally provide property management services, but unfortunately, it won’t organize rent payments, vendor bills, repair records, or owner statements for you.
TenantCloud’s property management software keeps those tasks in one place and gives owners access to on-demand statements.
As your staff and portfolio grow (especially when multiple people work on the same property), team management can limit each user’s access. At the same time, integrated accounting that syncs with QuickBooks will help you track cash flow to the penny.
Start a free 14-day trial with TenantCloud to get your property management career up and running.
Tennessee Property Management License FAQs
Do you need a real estate license to be a property manager in Tennessee?
Yes. When you manage rentals for another owner for pay, Tennessee treats the work as real estate activity. You’ll need an active affiliate broker or broker license from TREC. That said, you can manage property you own without that license under the owner exception.
What's the difference between an affiliate broker and a broker in Tennessee?
Tennessee uses “affiliate broker” instead of “salesperson.” An affiliate broker can perform property management work but must operate under a principal broker. A full broker can work independently after meeting the experience and education standards, including at least 3 active years and 120 approved hours.
Is there a separate property management license in Tennessee?
No. Tennessee doesn’t issue a standalone property manager license for typical third-party residential management. To manage properties professionally, you must qualify through the real estate system as an affiliate broker or broker.
Can you take Tennessee pre-licensing courses online?
Yes, as long as you choose a TREC-approved provider and course format. To become a property manager in Tennessee, you’ll need to complete 60 hours of real estate principles before testing and the 30-hour Course for New Affiliates. Check that your school is state-approved before paying tuition, as an unapproved class won’t satisfy the education rules.
