034: Landlord Friendly States

SHOW NOTES FOR EPISODE 034  –  LANDLORD FRIENDLY STATES

What does “Landlord-Friendly” mean and why is this important?  In this episode, Bill will be looking at the top 9 states that are more favorable for landlords.  As you are looking for new markets to invest in, keep in mind, some states do not have the best laws and regulations for landlords.   An often overlooked aspect of evaluating rental property markets is the local landlord-tenant law.  Certain states are dramatically more tenant-friendly than others, so it is critical to be aware of the landlord-tenant laws wherever you are considering investing.

Introduction

An often overlooked aspect of evaluating rental property markets is the local landlord-tenant law.  Certain states have dramatically more tenant-friendly legislation than others, so it is critical to be aware of the landlord-tenant laws wherever you are considering investing.

In states that are not so friendly to landlords, including California, New York, Illinois and New Jersey, if a renter is without, say, hot water, they can legally withhold rent until it is fixed (or pay to fix it and deduct that from the rent).  Another example of a city that is more anti-landlord is Baltimore, Maryland.  In Baltimore City, the eviction process takes at least three months, often longer, while the landlord must carry the mortgage and the tenant simply lives for free.  And when a judge does agree to allow an eviction to move forward, the landlord is not automatically granted a money judgment – they have to apply through another court process to recover past due rent.  For many Baltimore landlords it is not worth the trouble.

Knowing the landlord-tenant laws in the states you are investing is critical to your success as an investor.

Many states tend to favor tenants when it comes to implementation of landlord/tenant law. There are, however, some states that tend to favor the landlord.  If you’re thinking about getting into the rental property business, then you’ll want to consider these top landlord friendly states.

I have compiled a list of the top 9 landlord-friendly states.  You’ll notice that, as a general rule of thumb, Red states tend to favor landlords, while blue states favor tenants.

So here they are…

1) Texas

Texas allows landlords to quickly wield their rights when there is a lease violation in place.  Texas even allows landlords and tenants to agree on needed repairs at the cost of the tenant without recompense.

2) Indiana

This state offers landlords a lot of time to make sure their property wasn’t damaged by a tenant. Since 2002, landlords have been allowed to withhold a security deposit for 45 days to make sure their property wasn’t damaged by a tenant.

3) Colorado

Landlords have two advantages in the state of Colorado. They can enter a rental property they own without giving a tenant advance notice. They can also quickly move on eviction proceedings when rent remains unpaid. A demand for compliance gives tenants 72 hours to either pay the rent or move out.

4) Georgia

Georgia has a history of favoring the landlord when an eviction case is taken all the way to court. It is extremely rare for a tenant to prevail in an eviction case, even if there is just cause for them to not pay the rent. The state also has an informal eviction process which allows a landlord to potentially file for an unlawful detainer lawsuit in as little as 48 hours after not paying the rent. Notices only need to be verbally given as well and tenants must pay within 7 days of a payment demand or they will almost always be evicted.

5) Kentucky

In some instances, landlords can withhold the security deposit return for up to 60 days. Landlords can also file what is called an “Unconditional Quit Notice” if a tenant has been late on the rent once in the last 6 months. This gives the tenant 14 days to move out without the option to pay to cure a past due.

6) Mississippi

Most states allow for lease stipulations that require a tenant keep properties clean, in good working order, and free from garbage. There is no definition as to what garbage happens to be, however, so a landlord can declare just about anything to be garbage if it has no realistic use in their own opinion. Tenants failing to remove declared garbage can then have an eviction notice filed. Mississippi also allows for an unconditional 14 day notice to force a lease termination.

7) Arizona

Immigration issues are at the forefront of Arizona landlord/tenant law. Landlords are able to terminate a lease in 10 days if they discover false information on the application for tenancy, even if it has been several months. This includes failing to disclose any criminal conviction. Security deposits are limited to 1.5 months of rent and must be returned within 14 days of moving.

8) Florida

What makes Florida a landlord friendly state is the fact that there are no laws regarding rent control. Security deposits can be unlimited and can be returned up to 30 days after a move-out date. Overdue rent requires just a 3 day notice and damage to the property that is intentional qualifies for a 7 day unconditional quite notice. Repeated violations of the lease also qualify for the 7 day unconditional notice, but the court still must enforce an eviction and hear the case.

9) Arkansas

One of the more landlord-friendly states is Arkansas where failure to pay rent on time, for any reason, is grounds for eviction.  Further, when tenants lease property in Arkansas, the renters are accepting it “as is.” The only required maintenance is that which would violate health and safety housing codes.

These Top 9 Landlord Friendly States Will Help You Protect Your Investment.

Tenants still have rights in these states and landlords must always fulfill their obligation to provide safe housing, but these states give landlords more tools to use to rectify problematic tenant relationships.

So, to recap the top landlord friendly states.

1. Texas
2. Indiana
3. Colorado
4. Georgia
5. Kentucky
6. Mississippi
7. Arizona
8. Florida
9. Arkansas

Well that’s it for today!

So, until next time, remember CASH FLOW IS KING AND REAL ESTATE INVESTING THE MEANS.  Thanks again for listening and God bless!

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