Tennessee Practice TestProperty Management

Tennessee Property Management
Practice Questions & Answers (2026)

Property management questions on the Tennessee exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to Tennessee. The Tennessee Real Estate Commission (TREC) tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. Tennessee's landlord-tenant law has specific provisions — including notice requirements and tenant protections — that differ from what national study materials cover. These questions often involve scenarios where a property manager must navigate competing obligations to the owner-client and the tenant.

Practice Questions

Tennessee Property Management — Practice Questions & Answers

110 questions on Property Management from the Tennessee real estate question bank. First 10 are free — sign up to unlock all 110.

Q1. In Tennessee, a property manager who collects rent and manages properties for others must hold:

A.A property management certificate from the state
B.A Tennessee real estate license under a principal broker
C.Only a business license from their city
D.A separate property management license from TREC

Explanation

In Tennessee, property management activities — including leasing, renting, and collecting rent for others — constitute acts requiring a real estate license. A property manager must be licensed and affiliated with a principal broker.

Q2. The Tennessee Uniform Residential Landlord and Tenant Act (URLTA) applies to residential rental properties in Tennessee counties with a population of:

A.All counties regardless of population
B.75,000 or more
C.100,000 or more
D.25,000 or more

Explanation

The URLTA applies in Tennessee counties with a population of 75,000 or more. In smaller counties, the common law governs landlord-tenant relationships unless the parties' lease provides otherwise.

Q3. Under the Tennessee URLTA, a landlord must return a tenant's security deposit within how many days of lease termination?

A.14 days
B.30 days
C.45 days
D.60 days

Explanation

Under Tennessee's URLTA, a landlord must return the security deposit (or provide an itemized written statement of deductions) within 30 days after the tenant vacates and provides the landlord with a forwarding address.

Q4. A gross lease is one in which:

A.The tenant pays base rent plus a share of operating expenses
B.The tenant pays a flat rent and the landlord pays all operating expenses
C.Rent is calculated as a percentage of the tenant's gross sales
D.The tenant pays all property expenses directly

Explanation

In a gross lease, the tenant pays a fixed rent amount and the landlord is responsible for all or most operating expenses (taxes, insurance, maintenance). Residential leases are typically gross leases.

Q5. A property manager's primary fiduciary duty is owed to:

A.The tenants occupying the property
B.The property owner (client/principal)
C.The local municipality
D.TREC equally with the owner

Explanation

A property manager acts as an agent for the property owner and owes fiduciary duties — loyalty, obedience, disclosure, confidentiality, and accounting — to the owner as the principal. Duties to tenants are limited to honest and fair dealing.

Q6. Which type of lease provides the most security for a tenant in terms of rent predictability?

A.Month-to-month tenancy
B.Percentage lease
C.Fixed-term gross lease with a set rent
D.Net lease with expense pass-throughs

Explanation

A fixed-term gross lease provides a tenant with rent predictability because rent is set for a defined period and the landlord absorbs operating cost fluctuations. Month-to-month tenancies can be terminated or have rent increased with proper notice.

Q7. A net lease requires the tenant to pay base rent plus:

A.Only utilities
B.Some or all of the property's operating expenses such as taxes, insurance, and maintenance
C.A percentage of gross sales
D.The landlord's mortgage payment

Explanation

In a net lease, the tenant pays base rent plus some or all operating expenses. A triple-net (NNN) lease requires the tenant to pay taxes, insurance, and maintenance in addition to base rent, making it common in commercial real estate.

Q8. Constructive eviction occurs when:

A.A landlord obtains a court order to physically remove a tenant
B.A landlord's failure to maintain habitable conditions forces the tenant to vacate
C.A tenant abandons the property without notice
D.A new owner asks existing tenants to vacate after purchase

Explanation

Constructive eviction occurs when a landlord's actions (or inactions) make the rental property uninhabitable, essentially forcing the tenant to leave. The tenant may treat the lease as terminated and seek damages.

Q9. In Tennessee, the security deposit for an unfurnished residential unit may not exceed:

A.One month's rent
B.Two months' rent
C.Three months' rent
D.There is no statutory limit

Explanation

Under Tennessee's URLTA, the security deposit for an unfurnished residential rental unit may not exceed two months' rent. This cap protects tenants from excessive upfront housing costs.

Q10. A Tennessee landlord who wrongfully withholds a tenant's security deposit may be liable for:

A.Only the deposit amount
B.The deposit amount plus the tenant's attorney fees
C.Three times the wrongfully withheld amount plus attorney fees
D.TREC disciplinary action against the property manager

Explanation

Under the Tennessee URLTA, a landlord who wrongfully withholds a security deposit may be held liable for the deposit plus the tenant's reasonable attorney fees in any subsequent legal action.

Q11. A lease that automatically renews for successive periods unless either party gives notice is called a:

A.Estate at will
B.Periodic tenancy
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