A landlord I met recently signed a lease without a credit check or proof of income, simply because the tenant seemed like a good fit. Three months later, the rent started to fall behind, and the landlord realized why tenant screening is so important.

If you're renting out a home in Chattanooga for the first time, it's crucial to follow the right steps. Setting the rent, advertising, screening tenants, preparing the lease agreement, and checking state regulations are the five steps to follow in order to minimize future issues.

Starting with rent, according to Zumper data, the average rent in Chattanooga as of July 2026 is $1,450. This is about $500 lower than the national average and has decreased by 3.0 percent compared to a year ago. For bedroom counts, a 2-bedroom averages around $1,300, while a 3-bedroom is about $1,895. When determining rent, it's advisable to check the market rates for similar properties in the same neighborhood rather than relying solely on this average.

To set an accurate rent, it's best to select four or five comparable properties within a one-mile radius that have similar bedroom and bathroom counts and construction dates for direct comparison. Online market data reflects citywide averages and may not capture the specifics of certain neighborhoods or complexes. Setting the rent too high compared to the market can lead to longer vacancy periods, and the losses during that time may outweigh the benefits of lowering the rent slightly to fill the vacancy more quickly.

There are two main ways to find tenants. You can list your property on rental-specific sites like Zillow Rental Manager or Zumper, or you can go through a local real estate agent. The more detailed your photos and descriptions, the quicker inquiries will come in.

Once inquiries come in, the next step is screening. It's standard to check credit scores, proof of income, and previous rental history in that order. Income is often based on a guideline of three times the monthly rent. You must obtain the tenant's consent to check their credit score, and it's also wise to contact previous landlords to inquire about any rent payment issues. Skipping the screening process can lead to much larger costs down the line, as seen in the earlier example.

When receiving applications, it's a good idea to request supporting documents as well. Relying solely on verbal claims about income or credit status can lead to discrepancies later on.

• Copy of government-issued ID
• Recent two months of pay stubs or proof of income
• Contact information and duration of stay from previous landlord
• Credit check authorization form

The lease agreement must include the rent amount and due date, security deposit amount, pet policy, maintenance responsibilities, contract duration, and renewal terms. Remember that verbal agreements hold no weight if disputes arise later.

Signing the lease is not the end of the process. In Tennessee, landlords are required to maintain basic facilities like heating, plumbing, and electricity in working order. Before move-in, creating a condition checklist with the tenant to document the state of the property can significantly reduce disputes over whether damages were pre-existing or caused by the tenant when it comes time to settle the security deposit.

Regarding security deposits, Tennessee has no maximum limit. However, once the tenant moves out and provides a new address, the deposit must be returned within 30 days along with a list of deductions. There is also a requirement to inspect the property and create a deduction list within five days; failing to follow this procedure could result in having to return the full deposit.

If rent is not received, you cannot evict the tenant immediately. Typically, you must first send a 14-day notice for payment or eviction, and there is a grace period of five days from the due date during which late fees cannot be charged. If the same issue occurs within six months, it escalates to a 7-day notice, and at that point, even if the tenant pays the overdue amount, the lease may not be upheld.

This process may vary slightly by county, so it's important to double-check before signing a lease. The information provided here is for general informational purposes, and it's advisable to consult with a lawyer or real estate professional before drafting an actual lease agreement.