Nashville Property Management Pricing

Looking for Nashville Property Management Pricing?

Hey, Spencer Sutton here with gkhouses in Nashville. And the question I want to answer is about our Nashville Property Management Pricing.

And, what do we charge for property management services?

Three Different Plans

As a part of our Nashville pricing, we have three different plans that you can choose from depending on your situation

I’ll walk through each one of these very quickly and then you can always check out our Nashville Pricing Page for more information.

You can call us 615-925-3880, extension 3.

We’d love to hear from you as well, but if you just want to find out more information, this video will do the job.

Nashville Property Management Pricing – Gold Package

The first package that I’m going to talk from our Nashville pricing to you about is called our Gold Package.

It’s all of our standard property management features.

About 80% of the time that somebody brings a household over to us, it’s vacant.

The first thing that we need to do is come in and takes a look at that house.

I mean, before you sign a management agreement, we’d love to set you up an appointment with Duncan Murphy who’s our team leader.

We’ll perform a full walkthrough, hand you a report that’s going to say, “The house is rent-ready or it’s not rent-ready.”

If it’s not, then we’ll tell you, “Here are some items that need to be taken care of.”

From, the point, once the house is rent ready, we are going to aggressively market your house.

To get as many prospective tenants in to see it. And then also to fill out applications.

And we know if we get a certain amount of applications, we will find you a great well-qualified tenant.

In House Screening

We do all the screening in-house, here at gkhouses. So we used to outsource it, but we like to have better control of it.

So, we do all of it here in-house. Once we find you a great tenant and place them in the home, then you will see your very first fee.

Up until this point, we’ve done all of this work, marketed, screened all these people, and we’ve walked your house, given you a report. All without any upfront fees.

And as a matter of fact, our Nashville pricing we have a 100% happiness guarantee so you can cancel at any time, and there’s no penalty at all.

It is just like if circumstances change or you don’t like us for some reason, you can definitely cancel.

Leasing Fee

The very first fee that you’re going to see in this Gold Package is what’s called a leasing fee.

And that leasing fee is what we charge. It’s a one-time fee for placing a brand-new tenant.

So, that leasing fee is equal to 50% of the first month’s rent.

Once we place them in, we’re going to collect that security deposit and that leasing fee, we’re going to take it out of the tenant’s first-month rent.

So, if we rent your house for $1,500, then we’re going to take $750 of their initial rent and we keep that as a leasing fee.

Management Fee

Then from that point forward, we’re going to charge, on that Gold Package, $109 per month. It’s just a flat fee.

And like I mentioned, it’s all of our standard services, so we’re collecting rent, we’re communicating with the tenant exclusively so that you don’t have to.

We’re handling any kind of work orders that come in.

If they call and say, “Hey, there’s a leak in the sink and water is running all over the kitchen,” then we’re going to dispatch one of our plumbers to take care of that.

We’re going to electronically disburse funds into your bank account on the second Friday of every month.

Also, we’re going to give you two owner statements per month.

So, all of these things are part of our standard services that we provide you at $109 a month.

It doesn’t matter how much you rent your house for. And, again, that leasing fee is 50% of the first month’s rent.

Nashville Property Management Pricing – Platinum Package

The second package in our Nashville pricing is called the Platinum Package and it has everything in it.

And, it comes with optional services that I’ll describe in just a little bit, but the biggest feature of Platinum, the reason why people choose Platinum is that it has guaranteed rent.

Guaranteed Rent

What that means is, let’s say, that we rented your house for, you know, your $1,500 house.

We had a great tenant in there, four months in they lost their job, or they went through some type of personal crisis.

Things that we cannot foresee in the underwriting process because life happens.

If they cannot pay rent, we would still pay you the same amount every single month as we have from the very beginning.

And so, we’re going to continue to pay you regardless if they pay us if we collect rent.

So if for some reason, some unfortunate reason we can’t collect rent and we have to evict that tenant, we’re going to pay for the entire eviction ourselves.

Then also we’re going to, once we have possession of your house, we are going to continue to pay you for an additional three months or until we get a new tenant and place him in that house.

Optional Services

Platinum is a big deal because it has that guaranteed rent. It also has quarterly inspections built in.

We go out to your house once a quarter, we change air filters because we know tenants don’t do that.

We check batteries and smoke detectors and then we just take pictures, walk around the house, take pictures and send you a report saying, “Hey Mr. or Mrs. Owner, this is exactly how the tenant is taking care of your house.”

Those two optional services are in there. I mean, that optional service is in there, that quarterly inspection.

Then we also have a service included in the Platinum and its preventative maintenance for your heating and air system.

The goal is we come out there and once in the spring and once in the fall.

And we want to make sure that everything’s working properly and correct before the heat of the summer comes along and the really cold conditions in Nashville during the winter.

What we’re trying to do is we’re trying to prevent an emergency call or service for your heating and air system.

No Leasing Fee

In Platinum, there is no leasing fee. You don’t pay anything to get a tenant in your home.

The management fee starts at $219 a month. So, it’s a good bit more than the Gold Package, but it comes with all these additional features and it doesn’t have a leasing fee, but it does.

So if you rent your house for $1,500, it’s going to be a certain amount.

But as your rent increases, then the management fee goes up. It’s not an exact percentage. It’s more like in tranches that it’s going to increase.

On our Nashville Pricing Page, we have all of that broken down.

You can click a little link and pull up the full schedule, pricing schedule based on what you think your house might rent for.

That’s the Platinum plan.

Nashville Property Management Pricing – Investor Package

We have Gold. We have Platinum. And then, lastly, we have a plan if you’re an investor and would like a percentage based plan.

We’re offering you the same features that are in the Gold, but the pricing is 8% of rent collected.

The leasing fee is going to stay at 50% and then it’s just 8%.

So, what I would say to all the investors that may be a great deal for you or you may consider, “Well, I really want the flat-fee pricing.”

Totally up to you. It just depends.

You’re just going to have to, kind of, do the numbers and figure out what works best for you.

But we want to give you that option to be on a percentage base because you may want options.

Those are our Nashville property management pricing options for gkhouses.

Again, if you have any questions regarding our Nashville pricing, just dial the no 615-925-3880, extension 3.

We’d love to talk to you, fill out a form on our website.

On this video page, you can find a lot more answers to questions, but we hope this pricing video has helped you out.

Thanks so much.

What makes a property manager unique?

What makes a property manager unique? The promises they make to their customers.

Hey, Spencer Sutton with gkhouses.

Thank you for filling out the form, thank you for reaching out to us.

We will be back in touch with you as soon as possible to answer any kind of questions, walk you through our processes.

Before that happens I just wanted to really make three promises to you.

At gkhouses, we make you these three promises and then if you decide and we decide that it’s a good fit we would love to do business together.

But I think you need to know what these promises are before that happens.

Promise Number One

We promise to give you just a hassle-free property management experience.

And what that means is we have a 100% happiness guarantee and that’s our pledge to you.

If you are not happy, if you’re not satisfied with our service then you can cancel at any time.

There’s no penalty, there’s no fee or anything like that. Our entire goal is to make you happy.

And what we found out is that part of making people happy is giving them a very hassle-free property management experience.

Promise Number Two

We promise to find you a very well qualified tenant quickly.  So this is really what you want.

You want a tenant that meets certain requirements and you want them in your home as quickly as possible.

And we want to give you that and it’s our promise to you that we’re going to do everything possible to make that happen.

We have very strict underwriting criteria for prospective tenants, but we also are very aggressive in our marketing.

So we also have two guarantees that you can learn about, 21 days lease guarantee.

Where we’re gonna rent your house in 21 days or you get 2 months of management free.

Also, we have a tenant guarantee where we’re guaranteeing that that tenant will stay in your home for, you know, a certain period of time.

And so you can ask the gkhouses representative more about those guarantees.

Promise Number Three

And then we promise we are going to treat your home and your tenant with respect.

We’re going to take care of those two and very, very important assets. So your house is an asset but really your tenant is the most important asset.

And when we’re able to take care of those by providing good service, you and your tenant will be happy. These are things like timely accounting when rent is due, maintenance requests handled in a timely manner.

When we are able to do that and keep a tenant happy they will stay in your house longer but they will also take care of your house.

And so those are our three promises, hassle-free property management experience, we’re gonna rent your house to well-qualified tenants very quickly.

Then we’re just gonna take care of your home and your tenant, the two most important assets in this whole equation.

Again we look forward to speaking with you soon and thank you so much for filling out that form

Hey, everybody. Matthew Whitaker here.

I’m doing “Questions Owners Ask”. Today’s question is, “Why is it important to have local property management?” So, why is it important for the manager to be local?

First thing is local knowledge of the market. How do you know what things rent for? How do you know what houses in the area do? What’s a good street? What’s a bad street? Having a local manager that is familiar with the area is so super important.

Number two, local maintenance vendors. The kind of big boy property management companies typically don’t have local maintenance vendors. We actually employ our own maintenance vendors, so they’re obviously local. And, you know, having eyes and ears in that house for you that work for us is very important.

The third thing is a local trusted brand. So, renters rent from people that they trust. And if you have a local trusted brand, then your house is probably gonna rent faster. In other words, they already have a cycle of tenants that are coming through that you’ll be able to tap into that.

So, today’s question was, “Why is it important to rent from a local property management company?” I’m Matthew Whitaker with gkhouses.

Want to rent your Nashville house fast?

Rent Your Nashville Home FastUnfortunately, there is no silver bullet when it’s time to rent your Nashville house.

And to highlight the issue, the most common questions we receive at gkhouses is, “How long will it take you to find a tenant for my home.”

This is a valid question. And it’s a question that you need to consider even before renting your home.

But while it’s a valid question, it is also a tricky one. We don’t believe that there is a clear-cut answer to the issue. How quickly you rent your Nashville home depends on several factors.

In this article, we are going to discuss three tips to rent your Nashville home fast.

1. Price

You may feel this is a bit too obvious, but I can promise you that it isn’t. When we bring this point up to owners, a lot of time they dismiss it because they have a set price in their head for rent.

No matter what your neighbor receives in rent or what your friend told you should charge if it’s not market rent, you won’t rent your home fast.

Prospective tenants are smart. And they don’t necessarily want to pay more than they need to for rent. Especially if they’re signing a one-year lease.

That is why your rental home price needs to be what the market is willing to bear. In Nashville, it’s especially important because if you start off too high, your best prospective tenants could find something similar for less down the road.

Even in a hot housing market like Nashville, finding a great tenant fast is no guarantee if your home is not priced right.

2. Product

Your home is the product. In our article about how to keep a tenant for 20 years, we specifically speak about the house is an essential factor.

Not just in the way you present and market the home, but also in the layout. A house with a funky floorplan, a steep driveway, and a next to a busy road usually won’t rent in the first ten days.

The perfect tenant for this home is not the everyday tenant. It is going to take one that is special.

We also like to stress to owners how important it is for the house to be in great shape. Many homeowners (especially if they’re investors) want to save money. We understand the importance of stretching your dollar.

However, providing a tenant with a great house to live in might increase your chances of keeping them for a long time.

I have personally had tenants in my houses for over nine years. One of the reasons they have stayed so long is that I provided them with a great home from day one.

A simple tip is to look at the paint job in your bedrooms. If you have children and one of the rooms is pink, you may consider painting it a neutral color. Your goal is to appeal to the broad market of potential tenants who can afford your home.

3. Time of Year

It’s true, our Nashville property management business picks up tremendously in the late spring. Everyone knows that the summer is the best time to sell a house. The same is true if you want to rent your home.

Your chances of finding a great tenant increase starting in May. It’s not surprising since most people prefer to move in the summer.

Sometimes they prefer to move because of school schedules. Or they may prefer to move during summer because of the beautiful weather. No matter the reason, if you have the opportunity to rent your Nashville house during summer, it’s your best bet!

Conclusion

If you want to rent your Nashville house fast, think about the three things in this article – Price, Product, and Time of Year. These are the three factors that will most determine if your house is on the market for a few days or for several weeks.

If you would like to speak with our Nashville team leader, call us at (615) 925-3880 ext 3. You can also fill out the form on this page.

You may be trying to decide between self-management or using a Nashville Property Management company for your rental house.

Nashville property management vs self managementI’m glad you found this article because that’s what we’re going to break down.

Weighing the advantages and disadvantages closely, one can easily see that it is not all about how much it costs.

When you consider the headaches of dealing with middle of the night maintenance calls, late payments, tenant complaints, and understanding your local landlord-tenant law, it can seem a bit overwhelming.

To these people, it may make sense to look for a Nashville property management company that can take tenant calls, schedule maintenance, and collect rent. All while keeping landlord-tenant law compliant.

To others, however, they enjoy the hands-on nature of managing rental property. And having the opportunity to trade their time for a more in-depth understanding of managing rental property makes sense.

The Case For Self-Management

You are intimately aware of all aspects of the rental process.

Some owners enjoy and want to know everything that is going on with their house and the tenant.

Hiring a Nashville Property Management firm might give you advantages in many ways, but it won’t give you 100% clarity on the day to day operation of your rental.

For that hands-on ‘in the business’ clarity, it is best to manage the property yourself.

You will be involved in marketing and advertising, showing the home, processing applications, signing leases, collecting rent, and managing maintenance. This process will give you insight into your rental business that you won’t have if you hire a Nashville property management company.

You will keep more of the monthly rent for yourself.

One of the first questions a prospective owner asks us is, “How much are your fees?” It’s a good question and an appropriate question. But the point here is that no matter which Nashville property management company you hire, you will be paying something!

It could be a flat fee per month or possibly a percentage of monthly rent. But the point remains, you will forfeit some of the rent each month to pay your property manager.

Some property owners may need the extra money to help cover a mortgage each month. Also, some owners may want to manage their property so that they can reinvest what they would have paid in fees back into their rental business.

Whatever the case, if you manage your property, you will save those monthly management fees and can use them how you feel best for your situation.

You have the opportunity to hand-pick your tenants.

If you manage your rental property yourself, you are responsible for finding a qualified tenant. Now, if you’re a homeowner without rental experience, this can be a daunting task.

What if you put a tenant in your home that has a prior eviction on his or her record? What if your tenant falls on hard times? How will you address this with the tenant? This issue can be especially nerve-racking if your tenant is a friend or relative.

However, if you have a well-defined process for screening prospective tenants and do not fall prey to using your gut feelings, this can be a positive experience.

Also, you will need to understand and follow the Fair Housing Act. Adhering to this act will make sure you do not discriminate during your application process.

You can evaluate and hire maintenance people to do work on your home.

Hiring a maintenance person will give you control over the work and presumably the cost of each repair. If your HVAC goes out in the summer, you will choose the HVAC contractor that appeals to you.

This kind of hand-picking your maintenance person can happen even if you hire a property manager, but it will depend on the property manager’s agreement with you.

Some managers say you must use their preferred vendors or staff while others are ok letting you bring your contractor to the relationship as long as they do quality work.

If you have a lot of experience with property maintenance, then this would be an advantage because a property manager is most likely going to charge a fee to manage the maintenance project.

The Case For Hiring A Nashville Property Management Company

You will not be mired down in the day to day of managing rental property.

For the busy person who is not an expert at managing rental property, this will be good news! The Nashville property management company you hire will handle all of the details and keep you informed of the most critical aspects of your rental house.

  • Marketing information
  • Applications
  • Leases signed
  • Rent collected
  • Maintenance issues handled
  • Monthly accounting

This service can save a rental house owner many hours and a lot of stress and headaches. There’s a reason why the majority of property managers manage less than 300 houses. It’s because managing rental homes is a tough business and you need to be able to handle the stress and conflict in a professional manner.

You trade a management fee for your time and save the emotional stress of rental property.

Hiring a professional Nashville property management firm is going to cost you a monthly management fee, that is true. But to the owner who is looking for value, this will be a no-brainer.

Some owners don’t have the expertise to market a home. Much less screen tenants, review leases, collect rent and manage maintenance. To these owners, the monthly management fee is money well spent.

When you hire a Nashville property management company, they act as your agent and handle any issue with your tenant or home.

And if you own rental property long enough, you will have times of conflict with your tenant. This situation alone may be worth the monthly management fee you will pay a Nashville property management company.

You significantly reduce your risk and liability by allowing a professional to screen your tenant.

A Nashville property management firm will more than likely screen tenants in at least three of these five ways (we do all five):

  1. Credit – A good manager will have what they consider to be a baseline credit score and possibly some exceptions if a tenant agrees to a more substantial security deposit
  2. Employment verification – This allows the property manager to ensure that they haven’t recently (within the past weeks) lost a job that the income verification would miss.
  3. Income verification – Having a minimum ration of income to rent is advisable, and your Nashville property management company will have years of experience on what ratio works well.
  4. Criminal background check – We believe in second chances, but our owners would rather that second chance not come at their rental house’s expense.
  5. Previous property management referral – Asking questions like, ‘Would you rent to this tenant again?’ is an objective question that every former landlord or property manager finds easy to answer – yes or no!

A professional will know how to screen in a way that follows the law and dramatically reduces the risk that you will have a delinquent tenant in your house.

A professional property manager will mitigate your risk when it comes to maintenance on your rental house.

For the ordinary landlord, having a company with trusted staff or vendors who can work on your house is great. A trusted maintenance crew can end up saving you thousands each year. We have many owners who come to us only after a horrible situation. It usually happens during a rehab or if there is a complex maintenance issue.

If you are not careful, you can end up paying for shoddy work that only serves to make your tenant more unhappy and eventually leave.

The goal of owning rental property is to keep tenants long-term so that you don’t have to deal with expensive and complicated rehabs. If you bumble and fumble maintenance, that is a recipe for losing a good tenant.

A good Nashville property management firm will have trusted vendors or staff in-house. This expertise will give your tenants the assurance that you are looking after their best interests.

For instance, at gkhouses, we have a maintenance guarantee for 12 months. If something breaks within 12 months of us fixing it, we will make it right at no additional cost.

That kind of guarantee can give you peace of mind that you’re receiving quality work that will last.

Conclusion

No matter which decision you make for your situation, you can succeed owning rental property in Nashville.

If we can ever do anything for you, give us a call at (615) 925-3880. You can also fill out a form on our site.

Are you considering hiring a property manager in Nashville?

Hiring a property manager in NashvilleIn this guide to hiring a property manager in Nashville, we’ll discuss issues that you need to consider before you make a decision. Some of these issues will be obvious while other matters we address will be more obscure but no less significant.

Whether your an investor or an individual homeowner, we hope this article will help you make the best decision about hiring a property manager in Nashville.

In almost all cases, having a professional property management company take care of your real estate is wise. A competent Nashville property manager will make your experience both simpler and safer than managing the property yourself.

For starters, there is a long list of administrative, legal, and financial issues that you will need to take care of when you decide to rent your home.

And unless you plan on making property management your full-time job, and you have some experience in landlord-tenant law, this can be an unnecessary risk.

Plenty of people manage their personal rentals, and this article will also help you decide if you should or if you would be better off letting a Nashville property manager handle it for you.

And if you choose to manage the property yourself, at least you have thought through the relevant details!

Property Management in Nashville, TN

The tremendous growth in Nashville over the past 20 years has made it a target for commercial developers and residential real estate investors alike. The opportunity to buy and hold houses that experience double-digit appreciation has drawn national attention to the city.

Rental prices are also increasing steadily. At the same time, taxes remain somewhat reasonable.

A case for using a proper manager in Nashville:

So why would you want to hire a property manager in Nashville to handle your rental house?

The primary advantage of any property manager in Nashville is their vast knowledge and experience. They understand the local rental market and have developed reliable systems and processes over the years.

These systems and processes address everything from marketing your home to efficiently collecting rent each month.

A good manager will have systems and processes for almost every aspect of their business. Including answering your questions and making sure you feel comfortable with their ability to manage your home.

The goal of offering proven systems for some of the most critical tasks is to ensure that you can maximize the potential of your property.

You will also benefit from the city knowledge of the local manager as you have a shared interest from the get-go. A great property manager will try to accomplish these goals for you:

  • Find the best market rate for your home
  • Market your home quickly and on as many websites as possible
  • Process applications carefully to screen out any potential problem tenants
  • Sign a Tennessee landlord-friendly lease

These benefits coupled with saving your time may be enough to convince you that using a property manager in Nashville is your best bet.

Property Management Fees:

When picking out a property manager in Nashville, one of the first things you will be considering is the cost. You will want to find a manager that offers a pricing package that you are comfortable with paying.

This could be a flat percentage (like our gkhouses pricing plans) or a percentage based fee for services.

Flat fee pricing has become more popular in recent years. Our own decision to move to flat fee pricing came after eight years of a percentage based fee.

We felt the move turned out beneficial to our clients. If someone in Nashville who rents their house for $1,500 per month can receive full-service property management for $85 per month, that is a good deal.

The percentage-based pricing has been around for many years and is still the most common method of pricing.

What about other costs?

Maintenance Costs

It’s our experience that most owners underestimate the amount of maintenance that their property needs.Nashville property manager maintenance

The Nashville rental market may play a role in owners not seeing the value in regular preventative maintenance costs. When a tenant vacates a house, it is easy to rent it quickly.

With this, the owner may believe that it is in 100% rentable condition when, in fact, the tenant doesn’t want to risk losing an affordable house in their desired location…so they rent it without voicing concern over maintenance issues.

Not only will you have maintenance issues when a tenant moves out, but you will also face maintenance issues during a tenancy. This is to be expected and should factor into your budget.

One of our services is a quarterly inspection of rental houses. Our Property Manager Technicians walk properties once a quarter and send reports back to our owners. This report highlights any maintenance issues we believe the owner should be aware of in case they would like to fix something before the tenant complains.

The property manager in Nashville you choose may have a maintenance department, or they may outsource all of the work and manage the vendors for a small fee.

It’s essential that you find a company that you feel comfortable can handle your maintenance in a manner that will preserve the value of your rental house investment.

Leasing and renewal fees

Most property managers in Nashville will charge what’s known as a ‘leasing fee,’ or a ‘lease up fee.’

This fee typically covers the following services:

  • Taking marketing photos
  • Posting on their website as well as syndicating to other favorite sites
  • Showing your property to potential tenants
  • Processing applications
  • Choosing your tenant and having them sign a lease

Leasing fees typically range from half of the first month’s rent to a full month’s rent. And the fee is only charged when your property manager places a new tenant.

The renewal fee is charged when a current tenant agrees to renew the current lease for another 12 to 24 month period. Renewals are essential because they help give you the security that you will have a tenant for at least another 12 months.

In our renewal process, we reach out to you, the owner, 120 days before the lease anniversary date and ask if you still want to rent the home for another 12 months. This is your opportunity to say ‘no!’

Once we hear from you, we reach out to the tenant 90 days out and confirm they want to renew the lease. If we don’t hear from them right away, we reach out 60 and 30 days out as well.

The renewal fee is typically much less than the leasing fee and is usually a flat fee. Our renewal fee is between $0 and $200 depending on which package of services you choose.

Eviction Services

If you ever face the unenviable task of dealing with a tenant who stops paying, you may need to file for eviction.

The eviction is something your property manager in Nashville will handle, but you will incur the expense.

You may be thinking, ‘If my property manager does a great job at screening my tenant, I shouldn’t have any evictions.’ In theory, that is correct.

However, a tenant can fall behind for many reasons that will never surface during the application process.

Here are a few reasons:

  • Loss of job
  • Divorce
  • Personal crisis

There are many reasons that a person, a good tenant, could fall behind.

In that situation, your property manager should handle the process of posting a notice and following the law until they are out of the home. However, you will be responsible for court costs, attorney fees, and any set-out charges that may be a result of the eviction.

Additional Considerations

Besides pricing, what should you look for in a Nashville, property manager? Here are some helpful questions you need to ask before hiring your property manager:

  1. Do you offer any guarantees with your services? A manager could guarantee tenant performance, maintenance, or some other aspect of their management services
  2. What is your eviction rate? The fewer the evictions, the better their screening process
  3. What is your occupancy percentage? If they have a high percentage of vacant houses, their leasing may be lackluster
  4. What is your tenant screening process? Ensure you believe they are correctly underwriting your tenants
  5. Do you have a collections process? If so, please explain.

Those are just some questions you should ask. To see all 27 that we identified, check out this article.

There may be several other questions you have in regards to Nashville Property Management. Reach out to us at (615) 925-3880 ext 3 if we can ever be of service.

Should I Rent My House In Nashville?

Nashvile Skyline Sunset

Should I Rent My Home In Nashville?

Well, should you? And how can you know for sure?

Every day someone is faced with the decision of whether renting their home in Nashville is a good idea. You may be faced with this decision for many different reasons.

In hot real estate markets, like Nashville, this question may be based on a couple of decisions. It may be whether you would like the extra rental income or you plan on keeping it in the family for some reason.

In slower real estate markets, this issue is the question facing homeowners that are not able to sell their home.

Regardless of the reason, this question has very real and significant effects on your financials and should not be taken lightly.

Through the rest of this article, we will review the positives and negatives of renting your Nashville property. We will finish with risk factors that must be considered.

Should I Rent My House In Nashville? The Positives of Renting Your Nashville Home

Many positives exist for the Nashville landlord, but before getting carried away, remember that the rental property industry traditionally is not a highly profitable industry immediately, but is very effective in building wealth for the long term. If you’re looking for a way to make a return in real estate faster, you will need to learn how to flip properties in your area. Here are the positives of renting your house Nashville home:

Cash flow on black blackboard with businessmanExtra Monthly Cash Flow

Through the monthly rent payment, the landlord creates an additional “passive” income stream. This additional income can be used for multiple purposes. Such as, paying holding costs for having the property or growing additional equity in the home by making larger mortgage payments. How this is used, is up to the landlord.

Build Towards Retirement

Many landlords use Nashville rental real estate as a cornerstone of their retirement portfolio. You can do the same. Your home can be the start of a Nashville real estate portfolio that generates significant passive income into your golden years.

Real estate is one of the best tools to use the principle of leverage to grow your assets at a faster rate.

Secure Additional Time

In many circumstances, you may simply need additional holding time to achieve your goals for the property. Renting the home may be the answer to this need.

By holding the property for additional time, you may be able to benefit:

  • Property appreciation
  • Securing of another loan
  • Or helping you build equity to get “right-side-up” to sell the property

Tax Advantages (write-offs, 1031 exchanges, etc)

To help increase the availability of rental property, the government has built-in incentives for landlords that are in addition to the standard mortgage interest deductions. Some examples of these incentives are below (we’re not tax professionals so make sure you check with one first!):

1. Writing off your Nashville rental property’s expenses against your income

2. Tax-favorable treatment upon the sale of the property (ex. 1031 exchange)

Should I Rent My House In Nashville? The Negatives of Renting Your Nashville Home

The Tenant will be Harder on Your Home

A false belief that many new landlords have is that the tenant will maintain the home as well as the homeowner would. 90% of the time, this is simply not the case.

Tenants are generally harder on the home and not as attentive to the unique needs of the home. Clearly outline expectations with potential tenants.

But the landlord also needs to align his/her expectations. It’s helpful to understand the average life expectancies for certain home repairs and equipment.

Keeping an Emergency Fund

You will want to maintain a larger fund for your rental home’s unexpected repairs or default in rent payments.

The landlord is responsible for maintained habitable living conditions at all times. Any repairs that need to be made to maintain these conditions must be completed within a timely manner or the tenant may have a case for recourse against the landlord.

Not having the funds to make the repair is not an excuse. For the homeowner, when you have something that needs to be repaired, you can simply determine and rank the importance based on your ability to pay for the repair.

This isn’t the case when you become a landlord. Your tenant will expect (and rightfully so) that repairs will be made in a timely manner.

Cropped image of female accountant working on financial reportBookkeeping, Tax Reporting, and Exposure to Liability

When you own rental property, understand that this is a business venture with specific laws surrounding it.

You will want to keep a clear record of all of your expenses and consult tax professionals to ensure that you are reporting everything properly and gaining every advantage afforded to you.

Also, realize that there are many laws surrounding the selection of tenants and the management of interactions with them. Make sure that you read and understand these laws, both federal and local Tennessee laws.

The last things that you want is a lawsuit due to your violation of Equal Housing Opportunity laws or Tennessee Landlord-Tenant Statutes.

Increased Responsibility

When you are a landlord, expect to be the person that receives phone calls regardless of the day or time.

If something breaks, you need to have a process for seeing the issue through to completion. You have the responsibility as listed above for following additional laws.

You are responsible for finding, showing and leasing the home. And if all of that is not enough, you are the go-to person for collecting rent when the tenant fails to pay on time.

When I first started to rent houses, this was the biggest adjustment I had to make. I’ll never forget receiving those calls at 2 am because a water leak had caused the ceiling to fall on one of my tenants while she was asleep. As you can imagine, that was not a pleasant phone call!

Initial Repairs Needed

Before rushing into the decision to rent your home, first, make sure that an initial outlay of capital is not required to get the home in marketable condition.

Even though the Nashville rental market is hot, a sub-par product will not rent due to the other competition. It may take additional funds to get your home to a marketable condition. We explain to our owners that if a house sits on the rental market for a period of time, there is either a price or product problem.

Should I Rent My House In Nashville? Risk Factors to Consider When Renting Your Nashville Home

A large track hoe excavator tearing down an old house.Tenant Trashing Your Home

This is one of the two largest fears a homeowner has when asking, “Should I rent my Nashville home?”.

If a tenant trashes your home and leaves you with a large rehab job before you can rent it again, it becomes a frustrating circumstance.

Even if the tenant pays rent every month, they still may cause damage to the home. As a matter of fact, based on our experience, a rental house will need work performed about 90% of the time before you rent it again. You must plan on this happening and be happy when it does not.

Slow-pay, No-pay or Eviction

This is the second of the two biggest fears a homeowner has when considering whether or not to rent their home.

A tenant that pays late, does not pay, or must be evicted is also a risk that should not be ignored. This can cause financial issues if the landlord is not ready.

You might suffer months of no income. Rehab costs to get the home rent ready again. The cost to evict a tenant. The expense of marketing a home. All of the costs add up…and don’t forget your time…that’s worth something, right?

Multiple Problems at Once

Worst-case scenarios can have compounding effects. Make sure that you do not put yourself in position so that one negative event can turn into 2 or 3 negative situations in your financial life.

An example of this could be you having a significant decrease in your monthly income and, consequently, not being prepared to absorb a second negative occurrence involving your rental home. If you could not handle a repair call or vacancy during this time because your budget is too tight, you may need to re-think renting your home.

Type of Financing

Before renting your home, be sure that you have verified the type of financing that you have on your home.
Some loan payoff schedules (ex. balloon) would not be conducive to a long-term rental scenario. Know your time horizon and make sure that your financing can see you through.

Location and Trends

Before renting your home, make sure that the extra holding time will be beneficial to you. Look at the trends in your neighborhood and decide whether you believe the property value will increase or decrease during the additional holding time. If it will decrease, it may be time to sell and look in other locations. This is extremely important in larger cities like Nashville.

Deferred or Impending Maintenance

Before renting your home, be aware of impending maintenance items that will be required.

A new roof or replacement of an HVAC unit should not come as a surprise and should be planned for. If any of these repairs are seeming likely in the near future, make sure to include that in your calculations and reserve funds.

In summary, realize that there are many things to consider prior to flippantly deciding to rent your Nashville home. One poor or miscalculated decision can cost you dramatically. Ask the right questions and use your best judgment.

If your due diligence is thorough and all signs point to ‘yes’, you are well on your way to owning a portfolio of profitable Nashville rental homes.

There you have it. I hope this article has been helpful if you have ever wondered, “Should I Rent My House In Nashville?”