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What makes a state landlord friendly?

Looking for the most landlord friendly states?

It’s hard to pin down whether a state is landlord friendly or not because state law is complex and counties can have their own overlaying legislation.

It also depends on your preference, as there are elements you may be looking for that another landlord doesn’t care about. 

However, there are certain things to look for that definitely make it easier for a landlord to manage a property and collect rent.

To be clear these aren’t factors which make being a tenant harder, but rather rules that give landlords more control over how they manage their properties. 

Landlord friendly states

These factors make a state landlord friendly:

No rent control

Rent control is a big one, as it impacts how much you can increase rent year-to-year (or between leases).

No rent control means you can raise rent however much you’d like.

Low property taxes

Taxes are never fun, and that’s just as true here.

A lower property tax rate means you pay less at the end of the tax year. 

No (or favorable) security deposit laws

Security deposit laws in many states dictate how much security deposit you can collect from new tenants.

No security deposit laws means you’re free to set your security deposit to whatever you’d like. 

Speedy eviction process

Eviction processes vary wildly by state, with some states having large 30-day eviction notices and others have a 0-day eviction process. 

Additional tenant rights 

Beyond just these points, there are additional tenant rights that may be in place, not including COVID policies.

These can refer to any additional restriction for landlords other than the above points, such as repair-and-bill laws stating a tenant can repair a part of the property in need then deduct it from the tenant’s next bill. 

COVID-19 related regulations still in place

This is straightforward, it refers to a legislation put in place during the pandemic to protect tenants.

Typically, this is either eviction protections or price control. 

Each of these criteria, taken together, paints a picture of a state that is:

  • Easy to work with
  • Supportive of landlords
  • And with maximum profitability (as it relates to tax burden)
Friendliest states for landlords

15 Most landlord friendly states of 2022

Now that we’ve clearly defined our criteria, let’s talk about the most landlord friendly states.

Keep in mind that what makes a state landlord friendly is partly subjective, and therefore will depend on you to decide the optimal environment for your rental property investing. 

In no particular order, these are the 15 most landlord friendly states of 2022: 

1. Alabama

Why it makes the list:

  • Favorable eviction process with 7-14-day notice depending on the reason
  • Second lowest property tax rate behind Hawaii at 0.42%
  • No laws governing late rent fees, allowing you to charge however much you’d like
  • 60 Days to return security deposits

2. Arizona

Why it makes the list:

  • Low property tax rate of 0.62%
  • Fast eviction process (5 days notice for unpaid rent)
  • 1.5 months rent security deposit
  • No rent control
  • Tenants cannot withhold rent for any reason 

3. Colorado

Why it makes the list:

  • Property tax rate of 0.49%
  • Fast eviction process (3 days for unpaid rent)
  • No security deposit limit, and can be returned in up to 60 days
  • No rent control laws (price-related)

4. Florida

Why it makes the list:

  • No rent control
  • No security deposit limit
  • Can return security deposit in up 60 days in some circumstances
  • Only 12-hour “reasonable notice” for entry

5. Georgia

Why it makes the list:

  • No rent control
  • No security deposit limit
  • Low-than-average property tax rate of 0.83%
  • No guidelines for eviction notice

6. Illinois

Why it makes the list:

  • No security deposit limit
  • Up to 45 day return time for deposits
  • Faster-than-average 10-day notice to vacate for eviction notices

7. Indiana

Why it makes the list:

  • No security deposit limit
  • 45 day deposit return period
  • 10-day notice for evictions
  • Low 0.87% property tax rate

8. Kentucky

Why it makes the list:

  • No security deposit limit
  • Between 30-60 day deposit return window
  • No late fee limit
  • Low 0.86% property tax rate
  • 15-day eviction notice

9. Louisiana

Why it makes the list:

  • No rent control
  • No security deposit limit
  • 3-day eviction notice 

10. Michigan

Why it makes the list:

  • Lease adjustments can be made with 30-day notice 
  • 30-day security deposit return window
  • Lax rental laws in general

11. North Carolina

Why it makes the list:

  • No rent control
  • Low property tax rate of 0.78%
  • 10-day eviction notice (0-day notice for lease violations)

12. Ohio

Why it makes the list:

  • No security deposit limit
  • 30-day security deposit return period
  • 3-day eviction notice

13. Pennsylvania

Why it makes the list:

  • 10-day eviction notice
  • High average rental income of $1,300

14. Texas

Why it makes the list:

  • No rent control laws 
  • No security deposit limit
  • 30-day deposit return period
  • No rules regarding notice to enter for non-emergencies

15. West Virginia

Why it makes the list:

  • Low property tax rate of 0.57%
  • No security deposit limit
  • 65-day deposit return period
  • No repair-and-deduct laws for tenants
  • 0-day eviction notice 

Differences within states

One last note that’s important to mention:

Cities and counties have their own rental laws that layer on top of any state laws.

The result is that two different cities or counties within the same state can have vastly different rental laws.

Don’t just look at your state’s laws. Also compare your local counties so that you’re at least familiar with the differences in rental laws between them.

Is my state landlord friendly?

There it is– some of the most landlord-friendly states in the U.S. for 2022. 

The goal of putting together this list was to help you as a landlord and property investor understand what states may be better picks for rental investing, at least as it pertains to dealing with rental laws. 

If your state wasn’t mentioned, you might be wondering how it stacks up.

Just remember the criteria we covered earlier about what makes a state landlord-friendly:

  • No rent control
  • Low property taxes
  • No or lax security deposit laws
  • Fast eviction process
  • Additional tenant rights 
  • COVID-19 related regulations 

Plus, consider negative elements that might make it less landlord friendly. Such as:

  • Unique laws that are disadvantageous to landlords
  • High state taxes
  • And a growing population, especially of young families

Also, keep in mind that a state doesn’t have to make this list to be a good place to invest.

This list is just meant to give you clues about which states are a bit easier to work with. All states can have great rental markets and bad rental markets, just like the country itself.

We hope this list helps give you a little more information about where to start your next rental property investment.

David Bitton

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!