Tennessee Rent-to-Own Lease Agreement
A Tennessee rent-to-own agreement is a hybrid contract that allows homeowners to lease real estate to tenants while providing the option for the tenant to purchase the property at the end of the lease term. This agreement combines standard lease elements with specific purchase terms, creating a unique arrangement beneficial for both parties.
Tennessee Rent-to-Own Lease Agreement
Overview
The agreement typically includes standard lease elements such as the rental amount, lease duration, and the rights and responsibilities of both the landlord and the tenant. In addition to these standard components, the rent-to-own agreement outlines the conditions under which the tenant can purchase the property. It also requires the landlord to evaluate the tenant’s financial capability to ensure they can meet both the monthly rent and the potential purchase price.
Homeowners may utilize a rental application to assess potential tenants’ ability to fulfill their obligations before entering into this type of lease. If the tenant enjoys living in the property and has the financial means, they can subsequently enter into a residential purchase agreement with the homeowner to acquire ownership of the property.
Relevant landlord-tenant laws that govern these agreements in Tennessee include the Uniform Residential Landlord and Tenant Act, found in Title 66, Chapter 28, and the laws regarding the conveyance of property, outlined in Title 66, Chapter 5. These laws ensure that both landlords and tenants are aware of their legal rights and responsibilities, providing a framework for a fair rental relationship.
Statutes
- Tenn. Code Ann. § 66-28-301(a) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(2)(A) – Security deposits
- Tenn. Code Ann. § 66-28-301(g)(1) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(2) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(1)(B) – Security deposits
- Tenn. Code Ann. § 66-28-201(c) – Terms and conditions
- Tenn. Code Ann. § 66-28-201(d) – Terms and conditions
- Rent
- Tenn. Code Ann. § 47-29-102 – Handling charge
- Tenn. Code Ann. § 68-111-104 – Inspection
- Tenn. Code Ann. § 66-28-502 – Failure to supply essential services
- Tenn. Code Ann. § 66-28-512(c) – Landlord Recover Court and Attorney Fees
- Tenn. Code Ann. § 66-28-512(b) – Termination of periodic tenancy – Holdover remedies
- Tenn. Code Ann. § 66-28-512(a) – Termination of periodic tenancy – Holdover remedies
- Tenn. Code Ann. § 66-28-507 – Landlord Mitigate Damages
- Tenn. Code Ann. § 66-28-501 – Noncompliance with rental agreement by landlord
- Tenn. Code Ann. § 66-7-109(d) – Notice of termination by landlord – Testimony of manager against tenant
- Tenn. Code Ann. § 66-7-109 and § 66-28-505 – Notice of termination by landlord – Testimony of manager against tenant
- Tenn. Code Ann. § 66-7-109 – Termination for Lease Violation and Tenn.Code Ann. § 66-28-505 – Noncompliance by tenant – Failure to pay rent
- Tenn. Code Ann. § 66-7-107(a) – Termination for knowing controlled substance or prostitution violations
- Tenn. Code Ann. § 66-28-403(a) – Access by landlord
- Tenn. Code Ann. § 66-28-403(b) – Access by landlord
- Tenn. Code Ann. § 66-28-403(e)(5) – Access by landlord
- Tenn. Code Ann. § 66-28-519 – Towing of vehicles
- Tenn. Code Ann. § 66-28-404 – Use and occupation by tenant
- Tenn. Code Ann. § 66-28-405 – Abandonment
- Tenn. Code Ann. § 66-28-304 – Maintenance by landlord
- Tenn. Code Ann. § 66-28-401 – General maintenance and conduct obligations
- Tenn. Code Ann. § 66-28-302 – [Effective 1/1/2025] Address of landlord or agent
- Tenn. Code Ann. § 66-7-101 – Writing required for long term leases – Authentication and registration
- Tenn. Code Ann. § 66-7-104 and § 66-7-106 – Physically disabled persons’ access to housing accommodations
- Tenn. Code Ann. § 66-28-108 – Notification sent by e-mail
- Tenn. Code Ann. § 66-28-402 – Rules and regulations
- Tenn. Code Ann. § 66-28-514 – Retaliatory conduct prohibited
- Tenn. Code Ann. § 66-28-107 – Business License
- Tenn. Code Ann. § 16-15-501(d) – General jurisdiction
- Tenn. Code Ann. § 28-3-109 – Rent – Official misconduct – Contracts not otherwise covered – Title insurance – Demand notes
- Tenn. Code Ann. § 28-3-105 – Property tort actions – Statutory liabilities
FAQs
A Tennessee rent-to-own agreement is a hybrid lease that allows tenants to rent a property with the option to purchase it at the end of the lease term. It includes standard lease elements like rental amount and duration, as well as terms for the potential purchase of the property.
Key components of a Tennessee rent-to-own agreement include the rental amount, lease duration, rights and responsibilities of both parties, and specific terms outlining how the tenant can purchase the property at the end of the lease.
Landlords can assess a tenant’s financial capability by using a rental application to evaluate their income, credit history, and overall financial stability. This helps ensure that the tenant can meet both the monthly rent and the potential purchase obligations.
Landlord-tenant relationships in Tennessee are governed by the Uniform Residential Landlord and Tenant Act, found in Title 66, Chapter 28. This law outlines the rights and responsibilities of both landlords and tenants.
Tenants should understand the terms of the lease, their rights and responsibilities, and the financial implications of purchasing the property at the end of the lease. It’s also important to assess their ability to afford the rent and potential purchase price.
After a rent-to-own lease, if the tenant wishes to purchase the property, they can enter into a residential purchase agreement with the homeowner. This agreement will outline the terms of the sale and the purchase price.
Yes, a Tennessee rent-to-own agreement typically requires a lease agreement, a rental application to assess tenant qualifications, and a residential purchase agreement if the tenant decides to buy the property at the end of the lease.