Landlord Friendly states?

General Landlording & Rental Properties
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Landlord Friendly states?

Eliott G.
Real Estate Investor · Elgin, IL · Member since 2009 · 135 posts · 9 votes

I was reading about different laws in different states for landlords and tenants...

Can anyone tell me which states are the MOST landlord friendly and what states are the LEAST landlord friendly?

From what I can find New England and California are some of the LEAST friendly?
Anyone have some thoughts/details/experiences on this subject?

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
16y

Wyoming is very Landlord friendly. We'd like to keep it that way, so please don't move inland from the coastal states and try to change us!

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  • Bo Wagner
    Attorney · Brookhaven, GA · Member since 2013 · 23 posts · 26 votes
    12y

    I agree that GA is quite friendly. Process is pretty clear and simple to do BUT expect that some people will delay the eviction process so that they have more time to move out. I don't handle eviction cases but have a decent working knowledge of the system. As with anything, choose your tenants wisely, have EVERYTHING in writing and communicate clearly. Even though I don't litigate, my advice is this--if you show up in court with the best documentation and clearest 'story', you will most likely be the winner (maybe not with a jury but again, in Magistrate/Small Claims this should make sense, but your mileage may vary).

    1Reply
  • John H.
    Massachusetts, MA · Member since 2009 · 144 posts · 31 votes
    12y

    Anyone know if New Hampshire is landlord friendly?

    0Reply
  • Elliot Santiful
    Investor · Chester, PA · Member since 2015 · 1 post · 0 votes
    10y

    Hello All!

    I am new to investing and would like to know, if Delaware or Philadelphia are Landlord friendly states.

    Also, is there a source or list I can view with Landlord friendly States?

    Thanx,

    Elliot

    0Reply
  • Shamus Bell
    Future Investor · Philadelphia, PA · Member since 2015 · 26 posts · 1 vote
    10y

    Welcome. We'll that's for you too judge. Have a conversation with the person you'll about to rent from and draw from that. I'm sure there is some good landlords. 

    0Reply
  • Humphrey Piccus
    Washington, DC · Member since 2015 · 11 posts · 1 vote
    10y

    Is Virginia friendly to landlords??

    0Reply
  • Humphrey Piccus
    Washington, DC · Member since 2015 · 11 posts · 1 vote
    10y

    Is Virginia friendly?

    0Reply
  • Jennifer Jesse
    Midlothian, VA · Member since 2014 · 65 posts · 15 votes
    10y

    I feel like virginia is landlord friendly.  I just finished reading the landlord/tenant act and revising the lease we have, and feel there is alot of protection for the landlord and not overly tenant friendly. 

    2Reply
  • Account Closed
    Investor · Indianapolis, IN · Member since 2015 · 117 posts · 39 votes
    10y
    Illinois, bad. Cook County, Chicago, Rahm Emmanuel , need I say more?
    1Reply
  • Jessica Swingle
    Springfield, OH · Member since 2012 · 155 posts · 50 votes
    10y

    Many investors like Northern Virginia over DC/MD because of its "landlord-friendliness." 

    That said, it's more difficult to find viable income opportunities here due to higher prices (unless you look into the "outer" areas of NoVA.) 

    A online site you may want to check out is Landlordology.com. I came across it recently and find it to be an excellent resource for landlords (no matter where you invest). 

    P.S. I have no affiliation with this site. 

    Hope this helps. 

    5Reply
  • Christopher Lombardi
    Developer · Point Pleasant Beach, NJ · Member since 2015 · 303 posts · 216 votes
    10y

    I invest in PA and NJ.  Both are pretty reasonable as long as you operate outside of the bigger cities.  PA is definitely a little easier though.  

    0Reply
  • Heather DeGeorge
    Investor · Naperville, IL · Member since 2010 · 105 posts · 52 votes
    10y

    Originally posted by @Donald Howaniec:

    Illinois, bad. Cook County, Chicago, Rahm Emmanuel , need I say more?

    ^^This is a short-sighted statement.  There are plenty of places outside of Cook Co. to invest and much like @Christopher Lombardi noted--often the bigger cities are the more stringent.  We own in the Chicago suburbs and it definitely differs by the town/city.

    We also owned a rental in Baltimore (in the city proper) and some of the rules were pretty intricate and it seemed that while the resources were in place to support a remote landlord, there were plenty of challenges in doing so.  Even lenders and insurers were clearly trying to ensure that properties didn't fall into absentee landlording and the problems that come with that.  We sold that property in roughly 2009-ish so I'm not sure if things have changed.

    We also owned in NJ and my family has owned there for a long time.  It's like everywhere else--know the local codes (town AND county).

    1Reply
  • David M.
    Investor · Cincinnati, OH · Member since 2014 · 61 posts · 35 votes
    10y
    Originally posted by @Jimmy H.:
    Originally posted by MikeOH:

    I'm not sure what you meant here, but my tenants certainly pay their utilities. I would never buy a property if I were paying gas and/or electric.


    Mike


    Mike,

    Assuming you up the rents accordingly, to cover the cost of utilities and effectively "re-billing" the utilities, why would you "never" buy a property where gas and electric were paid by the landlord? Also it can provide a value add opportunity in some situations to get it switched. - Just wondering what your logic is here.

    There's no incentive for tenants to efficiently manage utility use.  Financially, bills can spiral because tenants are insulated from increases in the price of electricity/water/etc.  Environmentally, there's a lot of resource waste that, for those who are environmentally conscious, is not ideal.

    0Reply
  • Lynn Fujihara
    Real Estate Agent · Rancho Palos Verdes, CA · Member since 2015 · 12 posts · 1 vote
    10y

    I just closed a few months ago on a turnkey property on the Southwest side of  Atlanta, GA.  It seems to be working out well.   I am looking to expand my portfolio in this area.  Are there any landlord or tenant laws that I should be aware of?

    0Reply
  • TJ P.
    Investor · WI OH · Member since 2015 · 113 posts · 36 votes
    10y
    Originally posted by @Lynn Fujihara:

    I just closed a few months ago on a turnkey property on the Southwest side of  Atlanta, GA.  It seems to be working out well.   I am looking to expand my portfolio in this area.  Are there any landlord or tenant laws that I should be aware of?

     Would appreciate you keeping us posted, Lynn. You're ahead of me but have taken a similar track as I am in CA and plan to do TK in the South as well.

    0Reply
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    10y

    I will second @Nathan Gesner on Wyoming being a landlord friendly state.  It is only in the last 20 years a law got passed requiring you to have running water in a rental, but we have had laws on the books for over 100 years on what constitutes a legal fence.  By the way the law on having runni9ng water does not apply if the landlord and tenant agree it is not part of the lease.

    3Reply
  • Pam Storm
    Professional · Atlanta, GA · Member since 2015 · 63 posts · 30 votes
    10y

    Fun thread.  I see a variety of responses, and looks like most are bucketing "landlord friendly" as 1. relatively easy to evict  2.  Lack of onerous, complicated laws.  What other characteristics are you all thinking of in terms of 'friendly' or 'un-friendly'?  Thanks!

    0Reply
  • Paul Winka
    Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes
    10y
    Originally posted by @Pam Storm:

    Fun thread.  I see a variety of responses, and looks like most are bucketing "landlord friendly" as 1. relatively easy to evict  2.  Lack of onerous, complicated laws.  What other characteristics are you all thinking of in terms of 'friendly' or 'un-friendly'?  Thanks!

    The longer time to hold on to security deposits and ease of eviction is nice. What I think of with a more landlord friendly state is that it is not a good breeding ground for "professional tenants" that know the laws better than the unwary landlords they prey on. All the chicanery they put forth could score them 6 months or longer of staying in a unit, where it would be 30 days or less in landlord friendly states. 

    On another note, I have been going through the forums, and the states that keep getting mentioned are TX, GA, MS, CO, IN, and FL. Honorable mentions are AZ, VA, OH, and TN.

    3Reply
  • Account Closed
    Wholesaler · San Diego, CA · Member since 2015 · 48 posts · 12 votes
    9y
    Anyone have thoughts on WI as a landlord friendly state? We are interested in SFR's and wanted to hear experiences from others who own in WI.
    0Reply
  • Brad Russo
    Professional · San Francisco, CA · Member since 2016 · 124 posts · 31 votes
    9y

    The most landlords friendly states are Taxes, Indiana, Colorado, Georgia, Kentucky, Mississippi, Arizona, Florida. Sadly I do not know the least friendly states, but I suspect other people can cover that.

    0Reply
  • Account Closed
    Medford, MA · Member since 2016 · 85 posts · 44 votes
    9y

    @Eliott G.@Sandra Sunshine

    Massachusetts is absolutely on the top of least friendly states for landlords. 

    http://www.mass.gov/ocabr/consumer-rights-and-resources/housing/tenant-and-landlord/tenant-rights.html

    For example if the tenant simply stops paying you cannot kick them out or just change the locks. You have to bring them to court to officially evict them, which takes time, a lot of patience and your money at the same time and chances are better than most that you will never see that money ever again. Meticulous tenant screening and careful notice of where you purchase property is a must. 

    0Reply
  • Edward Rhoads
    Rental Property Investor · Indianapolis, IN · Member since 2016 · 200 posts · 87 votes
    9y

    Indiana is very landlord friendly.  I have heard that Illinois is very unfriendly especially in winter.

    1Reply
  • Keith Hand
    Investor · Brunswick, GA · Member since 2016 · 19 posts · 5 votes
    9y

    I invest in Georgia and it is a very landlord-friendly state. Evictions in Georgia are very simple, and it usually only takes 7 days and only costs about $75. There is a lot of leeway in how leases can be written in GA, and most of the laws favor the landlord. However, in my experience the magistrate judge makes a big difference. I invest in a small town in South Georgia, and though the laws are landlord-friendly, the magistrate judge can be difficult for landlords. My recommendation would be to talk to lawyers in your local area where you want to invest and see how the magistrate court operates in that area. It definitely makes a difference. We have had to adjust some of our procedures based on how the magistrate judge wants things done, even though we shouldn't have to based on the law.

    2Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    9y
    A rule of thumb is the more red the state the more landlord friendly as they'll tend to respect individual freedoms and the rights for two free parties to enter into whatever contract they agree to.
    1Reply
  • Alex G.
    Investor · Austin, TX · Member since 2014 · 184 posts · 229 votes
    9y

    @Mark Forest  I'm with you on this. 

    In Texas tax appraisals  are running pretty close to actual property values and a tax rate is 2.5-3% of the assessed value. As you move into properties of over $250K (in Austin where I am not may are sellign below that) -  property taxes could run as high as 30% of the gross annual rental income, espectially for SFRs. 

    Even on duplexes and 4plexes the taxes are eating nearly 25% of gross rents. You're essentially paying all of what would be your take home cash flow out to the county and other taxing entities. With current investor interest rates at 5%, our taxes are on par with P&I for a 75% LTV mortgage. That will kill your cashflow in a hurry.

    I did a search in BP database on states with low property tax rates but haven't been able to find anything. I wonder if anyone has compiled something like this, or can point me out to a source that might list tax rates for various states. Obviously, other factors are also play apart, such as how high the assessed values are compared to market. Ours seem to be just about as high as market.

    1Reply
  • Jenifer Kynor
    Fort Collins, CO · Member since 2017 · 273 posts · 91 votes
    9y

    I find Colorado to be very landlord friendly. With all of the military bases, colleges, etc. it is full of rental properties.  

    0Reply
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