Landlord Friendly Cities?

Multi-Family and Apartment Investing
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Landlord Friendly Cities?

Gregory Kraft
Accountant · Fillmore, CA · Member since 2021 · 9 posts · 7 votes

Hey everyone. What are some cities that are very landlord friendly? Looking at Tampa, KC, and Indianapolis right now. Any thoughts and/or advice would be greatly appreciated.

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Alex Olson
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
4y

@Gregory Kraft I can elaborate a little bit on the KC market being landlord friendly. Here are a few notes - there is no rent control, there is nothing that says you can't take any apartment anywhere in the metro directly to market rate rent once the lease expires. Low taxes comparatively speaking. Taxes do not go up immediately on sale on the MO side but do on the KS side. Still, they are reasonable. Also, you can evict tenants for non payment and failure to abide by the lease at ANY TIME and judges are typically responsive to that. There are low rental business fees in KCMO property, Johnson County and Wyandotte County. Typically around $50 per unit or less. Also, as you know good cap rates where we can project to get to 8-12% cash on cash return with hungry local lenders. Hope that helps!

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Killeen Texas

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    @Gregory Kraft

    There are a great deal of states that have developed a reputation for helping landlords in their investment endeavors, but some states boast inherent advantages over others. Three states, in particular, seem to award landlords with more benefits than just about everywhere else. To that end, some of the most landlord-friendly states in 2021 are as follows:

    Texas

    Indiana

    Colorado

    Alabama

    Arizona

    Florida

    Illinois

    Pennsylvania

    Ohio

    Georgia

    Kentucky

    Michigan

    North Carolina

    Read this article for more information https://www.fortunebuilders.co...

    Good luck!

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  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    4y

    @Gregory Kraft I can elaborate a little bit on the KC market being landlord friendly. Here are a few notes - there is no rent control, there is nothing that says you can't take any apartment anywhere in the metro directly to market rate rent once the lease expires. Low taxes comparatively speaking. Taxes do not go up immediately on sale on the MO side but do on the KS side. Still, they are reasonable. Also, you can evict tenants for non payment and failure to abide by the lease at ANY TIME and judges are typically responsive to that. There are low rental business fees in KCMO property, Johnson County and Wyandotte County. Typically around $50 per unit or less. Also, as you know good cap rates where we can project to get to 8-12% cash on cash return with hungry local lenders. Hope that helps!

    4Reply
  • Tyler LingleBusiness Member
    Real Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
    4y

    If you want to talk Indy details I'd love to. I own rentals in Indy as well as work as a realtor with many investors (local & OOS) here. Utilities are almost always paid by tenants. Eviction process is straightforward. Taxes are relatively higher at 2.0-2.5% of assessed value on rentals versus more like 1% on non-rentals. STR's are super lax here.

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  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y

    @Gregory Kraft most landlord/tenant laws are at the state level with some cities adding restrictions so I would first state with states. 

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Start with a Red State. Then find the Reddest City in the state.

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    4y
    Quote from @Bruce Woodruff:

    Start with a Red State. Then find the Reddest City in the state.


     One thing that I learned from OOS. The meaning of LL friendly is deep. Do NOT go to any city that has a property inspection required. It was discussed in another thread as well.

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Gregory Kraft
    Ohio is very landlord friendly. I would say Columbus, OH in particular, is the most landlord-friendly city in the state. There is no rent control as well as no point-of-sale inspections like in Cleveland.   

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  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y
    Quote from @Gregory Kraft:

    Hey everyone. What are some cities that are very landlord friendly? Looking at Tampa, KC, and Indianapolis right now. Any thoughts and/or advice would be greatly appreciated.




    Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. The appreciation rate in Columbus has been 8% higher than the national average over the last year. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.

    https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

    Another example of economic growth is the upcoming Ohio State University Wexner Medical Center Inpatient Hospital which is a 1.9million square foot hospital that will bring over 800 new beds and a thousand new jobs.

    https://abc6onyourside.com/news/local/new-osu-hospital-expected-to-transform-health-care

    Here are a few more recent investments

    https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

    https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus


    Check out The Complete Guide to the Columbus, Ohio Real Estate Market which goes through the Columbus, Ohio market in depth and will give you a better scope of where the highest levels of growth are taking place and where to look to invest.
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Gregory Kraft:

    Hey everyone. What are some cities that are very landlord friendly? Looking at Tampa, KC, and Indianapolis right now. Any thoughts and/or advice would be greatly appreciated.


     Ohio is pretty landlord frendly

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  • Tyler LingleBusiness Member
    Real Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
    4y

    Indiana is a "no pay, no state" type of state when it comes to the laws. Landlord friendly in that respect. Also, customary for tenants to pay all utilities. Also rental market is surging right now. For the two PM companies I refer to, they both have lowest recorded vacancy. Would love to chat about Indy. 

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    If you buy in class A/B areas of major cities it doesn't matter. I have sold 40 million of northside chicago multi units and never had a single client need to do an eviction. Compare this to landlord friendly Indiana where I have had clients with evictions and common late payments that only own a few buildings. @Brie Schmidt can second this when comparing to areas like WI where management is 10x more a headache even though the laws are more tenant friendly then Chicago. 

    3Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    4y

    Yep.  I agree with @Henry Lazerow

    I own properties A/B class in Chicago (tenant friendly) and C class in Milwaukee (landlord friendly) and I have filed eviction once in Chicago but the tenant moved out before we even got to court.  I have done about 100 evictions in Milwaukee.  It is nice being able to get a court date in less than 2 weeks and get someone out easily, but more important than the tenant laws are the class you are buying in.

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  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    4y

    Columbus OH is very landlord friendly. Its also the fastest growing metropolitan area in the midwest. id look into it if I was you.

    0Reply
  • Colton Hahn
    Specialist · Member since 2021 · 322 posts · 273 votes
    4y
    Quote from @Gregory Kraft:

    Hey everyone. What are some cities that are very landlord friendly? Looking at Tampa, KC, and Indianapolis right now. Any thoughts and/or advice would be greatly appreciated.


     We love Indy and Des Moines IA :) great returns to be made in those cities!

    1Reply
  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 463 posts · 253 votes
    4y

    Great question!

    I like Lansing, MI for its landlord friendly nature, quality of life and cashflow margins.

    Happy to help!

    0Reply
  • Eudith VacioPro Member
    Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
    4y

    I own properties both Chicago and Northwest Indiana - I love both states. I get to charge for more amenities in Indiana, but rent in Chicago is higher. Appreciation is more significant in Chicago, as well but Indiana is all about CASH FLOW. 

    2Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    Hey @Gregory Kraft - I can definitely speak to Chicago, IL and it is not landlord friendly, however, Indiana, Indianapolis is.  Are you looking specifically for multifamily or what's your strategy?

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  • Gloria N GearBusiness Member
    Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
    4y

    Another vote for Indianapolis -- Rental rates have been lagging behind sales prices for the last two years, but I have seen them catching up in the last few months and have been able to raise rents on all of my personal rentals recently.  Would love to have a conversation with you.

    1Reply
  • Harvey LevinPro Member
    Property Manager · Indianapolis, IN · Member since 2012 · 205 posts · 157 votes
    3y

    Lawerence and Warren Township are not Landlord friendly if you need to enforce the lease. The Mayor of Indy and City-County Council iare also not Landlord friendly.  More local landlords need to pay attention to those elections. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    @Gregory Kraft it starts with state laws and THEN trickles down to cities.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y
    The Ohio people are just about a cabal these days.
    😂

    I wouldn't call Ohio as landlord-friendly as other states. Utility bills go with the property, unless they've changed the laws since I lived there. So if your renter doesn't pay their water and electric and run off, well you have a nice tax lien coming unless you pay it yourself.
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  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    3y


    @JD Martin

    This is why you have good title company on your side to make sure things like that are cleared :)

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y
    Quote from @Joshua Janus:


    @JD Martin

    This is why you have good title company on your side to make sure things like that are cleared :)


    Right, but that only helps you when you're buying. That doesn't help you when you *are* the landlord and the tenant runs up a big power or water bill and then splits.
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  • Dave PoeppelmeierBusiness Member
    Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
    3y

    In Toledo, the Electric and Gas bills are in the renter's names. Water has to be in your name, but Ohio has legislation on track to limit a property owner's responsibility if someone leaves the faucets on when they move out and run up a huge bill. I also had to evict someone this Spring, and it was 6 weeks to the day from posting a 3-day notice to bailiffs making sure the home was vacated. No unlimited stays here. 

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