AN ACT to amend Tennessee Code Annotated, Title 66, relative to residential landlord registries.
Summary
SB1601 authorizes Tennessee municipalities, by a two-thirds vote of the local governing body, to require certain real estate investment trusts (REITs) that own, operate, or finance 10 or more dwelling units within city limits to register with the local building-code enforcement agency. The registration must include the REIT’s or agent’s contact information and the street address and unit number of each covered dwelling unit. The bill also requires REITs to update the local agency within 30 days if ownership or required information changes.
The bill establishes an enforcement mechanism for noncompliance. Local building-code agencies must assess a $50 per week fine against a REIT that fails to register or fails to report changes, but only after providing notice and an opportunity for a hearing. The act is scheduled to take effect July 1, 2026.
Impact
The bill would amend Tennessee Code Annotated, Title 66, Chapter 28, Part 1, by creating a new municipal authority to impose landlord registry requirements specifically on REITs with 10 or more dwelling units. It would not create a statewide registry, but it would allow qualifying municipalities to adopt one locally and to collect ownership and contact information for covered rental properties. The measure affects REITs, their agents, and local code-enforcement departments, and it adds a civil penalty process tied to registration and update failures.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears administrative and regulatory in nature, aimed at improving local property oversight rather than changing substantive landlord-tenant rights. The absence of recorded legislative history makes the overall sentiment difficult to assess from the provided record.
Contention
The main potential points of contention are the bill’s targeted treatment of real estate investment trusts, the local option structure, and the compliance burden it places on property owners and local governments. Supporters would likely view the registry as a tool for code enforcement and accountability for large rental portfolios, while opponents may object to singling out REITs instead of applying the same requirements to all landlords. The two-thirds municipal vote requirement and the $50-per-week penalty, along with the hearing requirement before fines are imposed, are likely the key policy details around which debate would center.
AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 13; Title 47; Title 48; Title 61 and Title 66, relative to ownership of residential rental property by business entities.