One common phrase across the Visio Blog: “laws vary by state.” And it’s so true. Everything from rent increase notices to security deposits, and more, are determined by state laws. So inevitably, there are states that favor landlords more than others. Here are some of the most landlord friendly states along with the main pull for landlords in each:
Before diving into which states are landlord friendly, let's take a look at what we mean by that. A landlord-friendly state refers to a jurisdiction that offers favorable conditions and regulations for property owners and landlords. These states understand the importance of encouraging investment in the rental market and providing a balanced framework that protects both landlords and tenants. Several key factors contribute to making a state landlord friendly, including landlord-tenant laws, property taxes, and eviction procedures.
Landlord-tenant laws define the rights and responsibilities of both parties, ensuring a fair rental process. Landlord-friendly states tend to have laws that support landlords' ability to screen tenants, set rental prices, and maintain their properties. Rental laws often provide clear guidelines for lease agreements, security deposit handling, unpaid rent, and property inspections, reducing the risk of legal disputes and facilitating smooth transactions. Many landlord-friendly states do not have guidelines on certain rental laws, giving the landlord the ability to handle matters as they see fit.
Low property tax rates can significantly impact a landlord's profitability and return on investment. States with lower property taxes are generally more appealing to landlords as they help keep their operating costs lower, allowing them to offer competitive rental rates and maximize their rental income.
Landlord friendly states have eviction laws that enable rental property owners to swiftly move through the eviction process in the event if a tenant fails to pay rent or lease violations. States with a streamlined eviction process, clear guidelines, and reasonable timelines for eviction proceedings are considered more attractive for landlords.
There is no clear ranking on the most landlord friendly states, however there are certain states that are known to be landlord friendly.
Law-Depot, among many other credible sources, has Texas on their list of top landlord friendly states of 2023. First of all, Texas has a low property tax rate with an average of 1.6 and no state income tax, making the state ideal for rental property owners and business owners. Texas law also favors the property owner in the case of lease violations and gives the landlord lots of flexibility on the security deposit and lease terms.
Nolo provides a great overview of Indiana's rental laws. Indiana laws tend to favor landlords, particularly when it comes to eviction laws. In Indiana, rental property owners can terminate a lease agreement with NO notice if the landlord agrees to pay rent for the tenant for a specified time and the time expires or the tenancy ends on a certain day specified in the lease or rental agreement. Indiana law also states offers landlords plenty of time to hold onto security deposits to be extra sure there wasn't any damage done to their rental property by tenants.
Colorado is one of very few states that allows landlords to access a rental property without notice. Most states have a requirement to give reasonable notice. Colorado also has very quick eviction process if a tenant's rent is unpaid. See Avail.co for more information on Colorado rental property regulations.
Like Colorado, Georgia landlords can also process evictions very quickly. According to Turbo Tenant, the Georgia eviction process has no limitations and no time requirement for the landlord to wait before filing an eviction lawsuit. Another Georgia law that favors landlords is that the tenants cannot withhold rent for any reason.
Kentucky enforces something called an “Unconditional Quit Notice” if a tenant has been late to pay rent even once in the last six months. Essentially, one late payment and Kentucky landlords can order the tenant to move out within a short period of time. Learn more about the Unconditional Quit Notice at Nolo.
RentRedi considers North Carolina a landlord friendly state for its eviction process ease and no notice requirements around entry. North Carolina landlords can also deduct unpaid rent, wear and tear, and legal fees from a tenant's security deposit.
According to Mashvisor, Florida has no rent control laws. That means the landlord has the right to raise rent. Florida also has incredible flexible security deposit laws. There is no limit to the amount a property owner can charge for a security deposit, and security deposits can be used to cover unpaid rent or tenant damage.
Arizona is considered a landlord friendly state due to its swift legal eviction process. Judges tend to favor landlords in the case of an eviction lawsuit. Key Renter Property Management also notes that Arizona does not have any rental control laws in place.
When deciding where to purchase your next investment property, besides considering property taxes and landlord tenant laws, it is also important to look at average rental income, property prices, and market conditions. States like Arizona, Georgia, Florida, Indiana, etc. offer attractive conditions and legal frameworks that prioritize landlords, such as no rent control ordinances, flexible security deposits, and no notice for rental unit entry.
Other states, such as California and New York, favor tenants with a tenant protection act and reasonable notice requirements. That being said, landlords should not limit their real estate investing to landlord friendly states only. Successful rental property owners know the laws well in the states they buy rental properties and act accordingly.