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:
Landlord-tenant laws
Security-deposit maximums
Rent-increase notices
Termination notices for lease violations
Termination notices for nonpayment
Abandoned tenant property
Deadlines for returning security deposits
Repair-and-deduct policies
Withholding-rent policies
Landlord’s access to the property
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 :
Arkansas
Arkansas is the only state where tenants can face criminal charges for failure to vacate.
2. West Virginia
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.
4. Georgia
Immediate Termination for nonpayment of rent.
5. Wyoming
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
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!