investing in states with strong renter protection?

6 Replies

Are there any fellow Washington state investors/landlords here or others who are investing in states with strong renter protections? What kind of legal protections or advice do you recommend? I saw many news about landlords going bankrupt due to the new eviction policy. I would love to know if there is any local landlord groups to learn on this topics.

What areas/states have really balance approach that protects both sides? 


Thank you!

@Chen Su , in this market, you will need to screen the tenants thoroughly. Having tenants into your rental property is way easier than evicting them out if they turned out to be bad tenants

I'm glad to hear you are thinking about this. Most of our coastal states are increasing regulations and creating laws that favor tenants, even when the tenant is clearly violating the terms of their lease on purpose. It's disgusting.

I recommend you read "Long Distance Real Estate Investing" by David Greene in the Biggerpockets bookstore. It really does walk you through the process of analyzing markets and developing a team to invest from a distance. You can look at middle America (Idaho to Ohio) and most of the states have reasonable laws. Even in a Landlord-friendly state, I recommend you try to stay out of the largest cities. I know those have a lot more opportunities but they are also most likely to adopt crazy laws first. In my experience, all the craziness from the coastal states eventually works it's way inland.

@Chen Su Tenant screening is super important as @Sherief Elbassuoni has mentioned.  Additionally, you can join the local landlord association and use updated and approved documentation (lease agreements, movein-moveout checklists, notices etc).  In Washington you can look up both RHAWA and WLA.  Both landlord associations are good and provide a lot of resources and guidance for landlords.

Landlord tenant laws are different between cities, so you can target cities (other than Seattle) that have more reasonable rules.  In general, using a good screening criteria, clear documentation and open communication with your tenants and you will do just fine.  While you can always run into issues with tenants I have found the vast majority are good people just looking for a clean, safe place to live.

Best of luck,

John

Did you mean to say states with stronger renter protections? That's dangerous for landlords... I assume you meant to say stronger landlord protections.

@Ali Boone Thank you for asking to clarify my question! I really meant to say states/cities with"strong/stronger renter protection". It is definitely not landlord friendly or maybe to the extend of dangerous sometimes. It is one of my biggest worries as a new landlord, so I wanted to be prepared and know how to be successfully despite of being in a such environment. In fact, I was so worried that I almost didn't take the step to purchase an investment. 

I am very new to real state investment, I would love to hear what you and other experience investors think! Rapid equity gain, good rental market, convenience and familiarity are the some reasons, I guess, why local investors do not stay away from such areas. I really appreciate what others have mentioned earlier! I need to join some local landlord associations and spend time understanding different rental laws among cities.

I am think it would be healthier to have a more balanced real estate investment pro folio. So, my plan for the next 5 year is to research areas outside of western Washington to find properties that may not have as much equity gain, but better cash flow, and more landlord friendly or at least not biased to just one side. I would love more suggestions on where to look!


Thank you!

Originally posted by @Chen Su :

@Ali Boone Thank you for asking to clarify my question! I really meant to say states/cities with"strong/stronger renter protection". It is definitely not landlord friendly or maybe to the extend of dangerous sometimes. It is one of my biggest worries as a new landlord, so I wanted to be prepared and know how to be successfully despite of being in a such environment. In fact, I was so worried that I almost didn't take the step to purchase an investment. 

I am very new to real state investment, I would love to hear what you and other experience investors think! Rapid equity gain, good rental market, convenience and familiarity are the some reasons, I guess, why local investors do not stay away from such areas. I really appreciate what others have mentioned earlier! I need to join some local landlord associations and spend time understanding different rental laws among cities.

I am think it would be healthier to have a more balanced real estate investment pro folio. So, my plan for the next 5 year is to research areas outside of western Washington to find properties that may not have as much equity gain, but better cash flow, and more landlord friendly or at least not biased to just one side. I would love more suggestions on where to look!


Thank you!

How far outside of WA are you willing to look? Outside of that question, I'm still not totally following what it is you're looking for, other than to just buy good rental properties. What are your goals? What kind of properties are you looking for, what kinds of things are you wanting to learn, etc.?