How to Select a Property Management Company in Tennessee

October 14, 2025

A Property Owner’s Guide to Selecting Professional Property Management

By Jill Allen

You’ve found the perfect multifamily property in Chattanooga or Hamilton County. The numbers work, the location is solid, and you’re ready to close. But purchasing the property is just the beginning – now you need to decide how to manage it.

With a collective 30 years of property management experience, our team sees the same story play out all the time. Enthusiastic new owners quickly discover that managing multifamily properties requires more time, expertise, and systems than they anticipated. Without professional management, even good properties can see vacancy rates climb and margins disappear.

So what are your options?

Why not hire an individual to manage the property?

You might be tempted to hire a single person to handle management duties. But this approach has serious gaps. What happens when they’re sick or on vacation? Do they really have the expertise to market your property effectively and manage tenant relations? And if they leave, you’re stuck interviewing, hiring, and training a replacement while your investment suffers.

Professional Management Companies Deliver: Here’s a number that might surprise you – a recent survey found that professionally managed rentals using management software stay empty an average of 4.5% of the time, while the national average is 9% vacancies. If you could cut your vacancies in half, that’s money in your pocket.

You’re Paying Retail for Everything: If you’re managing the property yourself or working with an individual, when the AC goes out now, who’s fixing it for you? Probably whoever picks up the phone first, and at a pretty penny. Professional managers have relationships with contractors who show up when they call. We typically save clients on their maintenance costs by using our established vendor networks.

Legal Mistakes Are Expensive: Fair housing laws, eviction procedures, and lease requirements are serious business. Mess any of that up and you’re looking at thousands in legal fees. I’ve seen landlords get sued for things they didn’t even know were illegal. One lawsuit can wipe out years of rental income.

The Stress Factor: This one doesn’t show up on your tax return or monthly budget review, but it’s real. When you’re the landlord, you’re always “on call.” Tenant calls at dinnertime, emergency repairs are needed during your once-a-year vacation, and coordinating tours, background checks, chasing delinquencies, and processing evictions are time-consuming stressors…it all adds up. Some of my clients tell me the best part of hiring us wasn’t the extra money; it was being able to sleep through the night again.

When Is It Time to Make the Switch to Professional Property Management?

You’ve Got Too Many Doors: For most landlords, managing even 6-8 units is a second job. Add in a new 20+ door unit and you’ll find that you’re quickly outpaced. This means you’re spending so much time managing properties that you can’t focus on finding your next deal.

Your Properties Are Spread Out: If it takes you more than 30 minutes to get to any of your properties, you probably need local help. Tenants expect quick responses. Show properties slowly because you’re across town? You’ll lose good tenants to landlords who can meet them that afternoon.

Your Buildings Are Getting Older: Properties built in the 1990’s or earlier need more attention. HVAC systems, water heaters, roofs – your systems will start breaking predictably instead of randomly. Professional managers know how to budget for this and have maintenance programs that catch problems before they become expensive emergencies.

What Good Property Management Actually Does

We Know What Rent to Charge: My team reviews comparable properties monthly, not just when leases come up. We use an advanced tool layered into our software that suggests the best rental rate on any given day using a formula of factors such as comparable units at another property, number of days vacant, occupancy aggression level, and much more.

We Fix Problems Before They Get Expensive: Instead of waiting for tenants to call with emergencies, we inspect properties regularly and keep track of when things are due for replacement. Cheaper to replace a water heater on your schedule than to pay emergency rates and insurance deductibles when it floods an apartment.

We Handle the Legal Stuff: Fair housing training, proper lease language, and eviction procedure regulations can change all the time. We stay current so you don’t have to become a part-time lawyer.

How to Pick the Right Management Company

Don’t make your decision based on who charges the lowest fee. A company that charges 8% and keeps your units rented will make you more money than one that charges 6% but lets units sit empty, or worse, fills them with expensive, poorly qualified tenants.

Here’s my must-ask questions when talking to a property management firm:

What’s your average vacancy rate? (If they don’t track this, keep looking.)
Who handles after-hours emergencies? (Hint: “the owner” is the wrong answer.)
How much does a typical turnover cost?
How are you marketing my property? (Your property needs a strong digital presence.)
Who will show my property and work with clients? (An ideal scenario is that the company has a stable team in place, and your property is generally shown by the same two or three employees.)
Can I talk to three current clients with similar properties?

Check the reviews and social media

Read Google and social media reviews for the professional property management company, as well as those of some of the individual properties. Keep your expectations realistic – the property management business is tough, and negative reviews are to be expected. If someone has been evicted, they aren’t leaving five stars. Instead, look for trends about building maintenance and service, rather than just the average rating.

Did the company respond to both negative and positive reviews, and are these responses respectful and consistent?
Is there a pattern of complaints that seem to be ignored?
How long does it take the company to respond to reviews and comments?

Ledford at Hamilton Place

While managing 121 doors at Ledford at Hamilton Place, our team made significant improvements across several key areas, transforming both the property’s performance and the resident experience.

Maintenance & Operations: We overhauled maintenance management, reducing work orders, addressing deferred maintenance, and executing CapEx projects that enhanced the community.

Tenant Quality & Stability: By implementing stronger application and screening processes, we set residents up for long-term success and improved occupancy.

Financial Performance: Our updated screening and collections processes resulted in a significant reduction in delinquency rates.

Market Competitiveness: Through targeted CapEx and renovation projects, we increased rental rates to be more competitive while also delivering a higher-quality product for renters.

Altogether, these changes not only improved the day-to-day experience for residents but also elevated the overall performance of the property. Ledford at Hamilton Place truly represents the type of success we strive to replicate across our portfolio.

Why We’re Different

We Know Chattanooga: East Brainerd, downtown, Hixson – all different areas, different tenant markets, different rental rates. We track what’s happening in each neighborhood because that’s how you maximize rent and minimize vacancy.

You’ll Actually Know What’s Going On: Monthly reports that tell you more than just “collected rent, paid bills.” We share with you what we’re seeing in the market, upcoming maintenance, and areas where we believe you can enhance performance.

Our Team is Ready to Take Your Investment to the Next Level: If you’re ready for a 50+ door complex, capital investments, or a fully-staffed, on-site office, you’ve come to the right place. Our past projects have included apartment complexes with multiple buildings, full-time staff, including maintenance and improvements, all managed for you.

Switching Is Easier Than You Think: We handle the tenant introductions, review your leases for problems, figure out which of your contractors are keepers, and get everything set up in the first month (properties over 40 doors may require a 60-day onboarding process). Most owners are surprised by how smooth it goes.

Contact our team today for a free property assessment. No pressure, just honest numbers so you can make the right decision for your situation.

Jill Allen is the Chief Operating Officer for SVN | Second Story in Chattanooga, Tennessee. With over ten years of executive leadership experience, Jill manages day-to-day operations and directly oversees the leadership team and a staff of 50 real estate and property professionals. She also serves as SVN International’s Property Management Product Council Chair.Want more data on investment opportunities in Chattanooga, Hamilton County, North Georgia and the Greater Southeast? Read our Annual Report or email us to request the most recent data.