Local Government, General

Plain English Breakdown

The candidate explanation includes details about fines and hearings which are supported by the official source material.

Residential Landlord Registry for Real Estate Investment Trusts

This bill allows Tennessee cities to require real estate investment trusts (REITs) that own or manage ten or more rental properties within city limits to register with the local government and provide specific information about their properties.

What This Bill Does

• Allows a city council, if two-thirds of its members agree, to make REITs register their rental properties in the city.
• Requires REITs to give their name, phone number, physical address (not P.O. box), and details about each property they own or manage within the city.
• Makes sure this information is given on a form provided by the local government agency that enforces building codes.
• Imposes fines of $50 per week for REITs that don't register their properties or update their information when changes happen.
• Gives REITs an opportunity to explain themselves before being fined if they fail to comply.

Who It Names or Affects

• Real estate investment trusts (REITs) owning or managing ten or more rental units in Tennessee cities.
• Local government agencies responsible for enforcing building codes and collecting information from REITs.

Terms To Know

Real Estate Investment Trust (REIT)

An entity that has an election in effect under § 856(c)(1) of the Internal Revenue Code, which means it owns or finances real estate properties and distributes most income to shareholders.

Limits and Unknowns

• The bill does not specify what happens if a REIT refuses to comply with the registration requirements.
• It's unclear how this will affect smaller landlords who manage fewer than ten rental units.
• There are no details on how local governments will use or protect the information provided by REITs.

Official Summary Text

Upon the adoption of a resolution by a 2/3 vote of the governing body of the municipality, this bill authorizes such municipality to require a real estate investment trust that owns, operates, or finances 10 or more dwelling units within the municipality
's corporate boundaries to furnish the following information with the agency or department of local government that is responsible for enforcing building codes in the municipality:



The real estate investment trust ("REIT")'s or the REIT's agent's name, telephone number, and physical address, which does not include a post office box.


The street address and unit number, as appropriate, for each dwelling unit that the REIT owns, leases, or subleases or has the right to own, lease, or sublease.

This bill requires the above information to be furnished on a form provided by the agency or department responsible for enforcing building codes. The agency or department must not collect any fee from a REIT filing the form.

If any of the above information or the ownership of the dwelling units change, then this bill requires the REIT that transferred the property by sale or otherwise, or the REIT's agent, to notify the agency or department of the change within 30 days of th
e change.

This bill requires the agency or department of local government that is responsible for enforcing building codes in the municipality where the dwelling units are located to assess a fine of $50 per week against a REIT that fails to register or that fails
to send notification of a change of information or ownership. Prior to the assessment of the fine, the REIT must be given an opportunity to appear and be heard at a hearing to be held concerning the REIT's failure to register or failure to send notifica
ti
on of a change of information or ownership. A written notice of the date, time, and place of the hearing must be mailed to the REIT or REIT's agent at least 15 days prior to the date of the scheduled hearing.

ON FEBRUARY 19, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1501, AS AMENDED.

AMENDMENT #1 makes a grammatical clarification.

Current Bill Text

SENATE BILL 1601
By Haile

HOUSE BILL 1501
By Lamberth
HB1501
010723
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 66,
relative to residential landlord registries.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 66, Chapter 28, Part 1, is amended by
adding the following as a new section:
(a) As used in this section, "real estate investment trust (REIT)" means an entity
that has an election in effect under § 856(c)(1) of the Internal Revenue Code (26 U.S.C.
§ 856(c)(1)).
(b)
(1) Upon the adoption of a resolution by a two-thirds (2/3) vote of the
governing body of the municipality, a municipality may require a real estate
investment trust that owns, operates, or finances ten (10) or more dwelling units
within the municipality's corporate boundaries to furnish the following information
with the agency or department of local government that is responsible for
enforcing building codes in the municipality:
(A) The REIT's or the REIT's agent's name, telephone number,
and physical address, which does not include a post office box; and
(B) The street address and unit number, as appropriate, for each
dwelling unit that the REIT owns, leases, or subleases or has the right to
own, lease, or sublease.
(2) The information required under subdivision (b)(1) must be furnished
on a form provided by the agency or department responsible for enforcing

- 2 - 010723

building codes. The agency or department shall not collect from a REIT filing the
form any fee.
(3) If any information required under subdivision (b)(1) or the ownership
of the dwelling units change, then the REIT that transferred the property by sale
or otherwise, or the REIT's agent, shall notify the agency or department of the
change within thirty (30) days of the change.
(c)
(1) The agency or department of local government that is responsible for
enforcing building codes in the municipality where the dwelling units are located
shall assess a fine of fifty dollars ($50.00) per week against a REIT that fails to
register or that fails to send notification of a change of information or ownership
as required by subsection (b).
(2) Prior to the assessment of the fine, the REIT must be given an
opportunity to appear and be heard at a hearing to be held concerning the REIT's
failure to register or failure to send notification of a change of information or
ownership. A written notice of the date, time, and place of the hearing must be
mailed to the REIT or REIT's agent at least fifteen (15) days prior to the date of
the scheduled hearing.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.