Top 5 Landlord Friendly States

By Christopher Levarek

“If you find a path with no obstacles, it probably doesn’t lead anywhere.”

- Frank A. Clark

One of the key considerations when selecting a favorable market for investing in real estate is selecting one in a “landlord-friendly” state. These states favor the landlord over the tenant in a multitude of areas which can make investing and land-lording in those areas much more agreeable.

In order to be a “landlord-friendly” state, rules and regulations should be favorable to the landlord in the following areas:

  1. Landlord-tenant laws

    1. Security-deposit maximums

    2. Rent-increase notices

    3. Termination notices for lease violations

    4. Termination notices for nonpayment

    5. Abandoned tenant property

    6. Deadlines for returning security deposits

    7. Repair-and-deduct policies

    8. Withholding-rent policies

    9. Landlord’s access to the property

    10. Regular termination notices for tenancies at will

When a study was done fairly recently by Rentcafe, the following states were ranked as being the most Landlord Friendly or least friendly to their renters based on the above aspects :

  1. Arkansas

Arkansas is the only state where tenants can face criminal charges for failure to vacate.

Arkansas is the only state where tenants can face criminal charges for failure to vacate.

2. West Virginia

Immediate Termination possible for lease violation.

Immediate Termination possible for lease violation.

3. North Carolina

Maximum allowed security deposit for an unfurnished apartment on a one year lease can be as high as two months of rent.

Maximum allowed security deposit for an unfurnished apartment on a one year lease can be as high as two months of rent.

4. Georgia

Immediate Termination for nonpayment of rent.

Immediate Termination for nonpayment of rent.

5. Wyoming

3 Days Termination possible for lease violation or nonpayment of rent.

3 Days Termination possible for lease violation or nonpayment of rent.

All 50 Ranked

All states color coded with dark to light and red being more favorable for landlords while blue being more favorable for tenants :

Source: Rentcafe.com

Source: Rentcafe.com

In Final

The above states are only ranked in regards to the landlord-state laws listed. Additional items to include in market selection or landlord friendly state rankings should also include aspects on property taxes, property values and average rents to name a few. Check out our suggested criteria for valuing a market for investing. Invest Smart!

Chris LevarekValkere Investment Group