Is Louisiana considered Landlord or Tenant friendly? How lengthy is the eviction process and costs involved?
Thinking about some out of state buy and holds and just want to know what I am getting myself in to.
I think I figured out a little bit. Any landlords from Louisiana?
Hey @Ron Drake--
I'm a landlord in NOLA, though I don't have much experience. I've owned a shotgun double for three years and rent out the other side.
I've never had to evict anyone, thank goodness. But the research I did before buying a multi leads me to believe that Louisiana is pretty landlord friendly...at least on paper.
So...evictions, fairly quick and easy. Though I suspect the filing fee is steep, at least in NOLA, just because filing fees are ridiculous for anything. Probably $250...because everyting else is, lol.
--Filing my HELOC with the parish...$250.
--Filing my pre-marital agreement with the parish $250.
--I also know it is $250 to file a small claims case, not including serving. FYI, from my understanding, Small Claims court almost always sides with the tenants.
However, depending on where you are looking to invest in Louis., other parishes probably have cheaper fees. Orleans Parish is in the business to rob its citizens blind every chance they get, while providing some of the worst crime rates, school districts, and healthcare in the country. But I will get off my soapbox now :).
I'm not familiar with RE markets in the rest of the state, but NOLA right now is enjoying much higher rental rates than in years past. And I get TONS of quality responses every time my place is up for rent. There are definitely some good deals cash flow-wise in this market...but a negative is the VERY high insurance rates. Both dwelling and flood. Still good cash flow opps even taking that into consideration.
For example, when I first bought my home, I had a dwelling-only policy that ran me $2100/year for a $160K replacement cost. The flood insurance was $1200/year and I was even in a good zone!
I grew up in So Cal myself and graduated from CSU San Marcos, so please let me know if I can help a fellow Californian out any further! And if you are specifically looking to invest in the greater NOLA market, I can definitely give you advice on areas.
@Ron Drake ... Sorry I saw your post yesterday and I was intending on replying but it slipped my mind. I would classify Louisiana as Landlord Friendly. I completed my first and only eviction (knock on wood) in June of this current year. I would be happy to answer any questions you have about Louisana. My eviction that I went through this year was in Bossier Parish but I am pretty sure most parishes are similar. Ask me anything and if I can't find the answer I'll try to find it.
I own 3 rental properties in Lafayette but have yet to do an eviction. All of my colleagues and mentors said the eviction process is pretty straight forward and landlord friendly.
Thanks Jennifer, Michael and Stephen
All helpful information. From what I could find on my own it looked like LA was pretty landlord friendly. A lot like Las Vegas and a whole lot better than California. I am looking at the Lake Charles / Sulphur areas.
Can any of you clue me in to the flood zones and insurance for that area. Property is designation X.
Also, are parishes like counties in other states?
In Louisiana one of the waivers that most landlords put in their leases is as follows:
"Lessee hereby waives written notice to vacate the premises and/or delivery thereof otherewise required under Article 4701 and 4731 of the Louisiana Code of Civil procedures and article 2713 of Louisiana Civil Code. "
-This article under the Civil Code allows landlords to start eviction procedures without serving a 3 day notice. You must have the tenant initial in the original lease.
My experience with my eviction is as follows:
-Tenants didn't fulfill obligations agreed to in lease.
-Go to Clerk of Courts office, bring copy of my original lease and +/- $75.
-The clerk looked over my lease and verified I had the waiver in the lease.
-I fill out the proper eviction notice with help of clerk since it was my first time. She schedules a court date. My date was three weeks out only because I waited until the 15th of the month to start the process. The clerk mentioned that if I would have started the process earlier the overall wait time for a hearing would have been much shorter. Most apartment complexes in my area file around the middle of the month. My particular parish is slower than the parish directly adjacent to us. From what I understand through our REI meet ups. The hearing is usually scheduled within 5 days in Caddo Parish.
-The City Marshall served the eviction notice and I waited until my day in court. I did not accept any type of payment because I wanted to follow through with the eviction.
-It took about 1 minute in court and I represented myself. I explained myself to the judge and he ruled in my favor.
-The tenant has 24 hours to vacate.
-If the tenant is still occupying the property after the 24 hour period you would have to go back and have a Marshall evict them. You have to have individuals to bring all furnishing that all left inside the house and place them on the curb. If someone stops and picks something up you are not responsible.
*I haven't experienced the last bullet point so I might be slightly off. But, it is some variation of that.
I completed the whole process myself and did not need an attorney. Hopefully this was able to provide you with some information. The process is very straightforward.
Yes Parishes are the same as Counties in other states
On insurance I would recommend calling a local insurance agent to get a quote.
Wow! Good stuff Michael.
I would double check on the abandoned property procedure though if you ever have to go there. That seems um,...to good to be true lol. In CA you have to store their stuff for 15 days if it is valued over $300.
Like others said Louisiana is landlord friendly. Serve the "notice to quit/vacate" (5 days). After that, eviction can be filed in your parish court and court date is set for tenant and landlord to appear. If the court rules in favor of the landlord, the tenant usually has 24 hrs to vacate the residence. Evictions in Baton Rouge is around $125.
You can always have the tenant waive the "5 day notice" when they sign the lease to make the process a little faster.
Flood Zone X is "minimal flood risk". I don't think flood insurance is even required for that, though it is probably a good idea and it will be much less costly.
Although I was initially paying $1200/year after I bought my house for flood insurance. It is a raised house and I got a new elevation certificate....which "upgraded" my flood zone to an X. That dropped my insurance rate to only $300/year.
An elevation certificate is basically having a surveyor (not sure if that is the right word) come out and and measure the elevation for YOUR specific property instead of the "blanket" elevation for the area. It's not free, of course. It's about $250-$400 to have a company come out and do that. However, for me, it was a small fee compared to the huge savings I got. The elevation certificates are good for at least (I think) ten years.
I second @Michael Faulk's recommendation of speaking to a local agent. They will be in the best position to know what insurance companies will even cover properties in the area(s) you are looking at.
That's my understanding also about abandoned property. Though, I do remember reading something about...although all the neighbors and their grandmas can go in and take whatever property is put out on the curb...the landlord themselfves have to wait 24 hours before taking or disposing of any property on the curb.
I have a friend who works for one of the biggie RE firms in the area...dozens of big apartment complexes...and that is exactly what they do. Tenants are evicted and their stuff is immediately put in the dumpster area. When I used to live in one of the complexes, she would give me a "heads up" if there was anything good going out, lol.
the plifering grandmas...I love it
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