Real Estate Bookkeeping In Tennessee
Tennessee surprises investors twice. There is no state tax on wages, but franchise and excise tax attaches at the ENTITY level, so the LLC formed for liability protection carries a filing obligation needing both a profit figure and a real balance sheet. And the rental stock itself is unusually mobile: Nashville properties convert between long-term and short-term use, while Memphis is one of the most out-of-state-owned markets in the country.
Locate the city nearest to you and select your software below to learn more. Don’t see your city? Schedule a meeting with us to learn more about how REA can help your property management accounting needs.
Tennessee at a glance
- Security deposit return
- 30 calendar days
- Governing statute
- Tenn. Code Ann. Title 66, Chapter 28
- Cities we publish
- Nashville · Knoxville · Memphis
What Tennessee Law Changes About Your Books
Deposit Handling and Trust Requirements
Trust and deposit rules are set state by state, and they change the accounting itself, not just the paperwork around it. A deadline is a ledger requirement: you cannot return a deposit inside a statutory window if the ledger cannot say what is owed.
Security deposits
Tennessee requires written notice of any refund due within 30 days of the rental agreement terminating and the premises being surrendered, with an itemised list of damages and supporting documentation where deductions are made. Failing the inspection, itemisation or return steps can forfeit the right to retain ANY portion of the deposit, not merely the disputed part.
Trust and segregation
Tennessee is prescriptive about custody and disclosure. The deposit must be held in a SEPARATE account at a financial institution subject to federal or state regulation, and the tenant must be given written notice of where it is held. The disclosure is part of compliance rather than a courtesy, which makes it a process obligation as much as an accounting one.
What we do about it
- Deposit liabilities tracked per tenant, so a 30 calendar days deadline is answerable from the ledger
- Trust accounts reconciled three ways, including every beneficiary balance
- Deduction documentation recorded against the correct ledger, not filed separately
- Aging deposits flagged before the statutory window closes
Summary of statutory requirements provided for orientation. It is not legal advice, and local ordinances can impose stricter rules than the state minimum.
Cities We Cover in Tennessee
Market by Market
We work with property managers and investors across all of Tennessee, all 548 cities and towns of it. The markets below are the ones we publish Tennessee-specific detail for. If yours is not listed, the same team and the same Tenn. Code Ann. Title 66, Chapter 28 rules still apply.
Nashville
Nashville portfolios move. The same house can run as a long-term rental one year, a short-term rental the next, and back again when regulation or demand shifts, and a property changing revenue model mid-year is a harder accounting problem than one that only ever did one thing.
Bookkeeping by platform
Knoxville
Investors arrive in Tennessee expecting a simple tax picture because there is no state tax on wages, and then meet the franchise and excise tax at the entity level. The surprise is not the rate, it is that the obligation attaches to the structure most of them were advised to use.
Bookkeeping by platform
Memphis
Memphis is one of the most out-of-state-owned rental markets in the country. A large share of the doors are held by investors who have never seen the property, which makes the owner statement the entire relationship rather than a monthly formality.
Bookkeeping by platform
Select Your Software
We Work Inside Your Platform, From Anywhere in Tennessee
Services Available in This State
Every back-office function below is available on its own or as part of a full monthly close, anywhere in the state.
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
Handed over the whole accounting function
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
Day-to-day financial operations
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Onboarding and responsiveness
Real Estate Accounting truly is a special company. They helped as if they were a part of our company, with the concern and caution as an employee would have, but even more. They quickly ascertained our needs and developed an effective team to help with our accounting needs. They were extremely responsive and always accurate. I would recommend their services to anyone who needs help with their property management accounting.
230+
Property Accountants
30M+
Commercial Sq. Ft.
Up to 50%
Saved vs In-House
Every month
On-Time Close
Property Accounting for Tennessee Portfolios
Schedule a call and we will walk your Tennessee deposit and trust setup, tell you whether it reconciles today, and scope the monthly work.