TOP 10 MOST LANDLORD FRIENDLY STATES IN 2022
Alabama
Alabama is one of the most affordable real estate markets in the United States. The state’s median home value has been rising for more than a decade, but low-interest rates and an increase in the state’s family income level have made it easier for more people to purchase homes. Is Alabama a landlord friendly state? Yes!
- Alabama has one of the lowest property tax rates in the country, the second lowest after Hawaii. According to SmartAsset, an Alabama homeowner pays only $609 in property taxes per year. That’s about a quarter of the national average of $2,578.
- You don’t need a rental license to be a landlord in Alabama.
- Alabama law prohibits tenants from withholding rent or using “repair and deduct” when landlords fail to make needed repairs to the rental unit. Tenants must submit their requests to their landlord in writing and give an ultimatum of 14 days after which they are free to leave if the landlord fails to make the repairs.
- For a month-to-month rental arrangement, you are allowed to increase the rent after a 30-day notice.
- Since Alabama’s state law does not cover late rent fees, you can charge however much you consider reasonable for late payments. This is as long as it is clearly stated in the lease agreement.
- The eviction process in Alabama is straightforward, compared to other states. You can evict a tenant for unpaid rent after a 7-day notice. Eviction based on a breach of the lease agreement requires a 14-day written notice.
Florida
In Florida, the laws governing landlord-tenant relationships don’t go into specific detail. This provides a less rigid landscape for property owners and landlords.
Evicting a tenant for unpaid rent requires you to give them at least three days to pay up or leave. If you’re evicting them on grounds of property damage or breach of a lease agreement, the written notice must allow for up to 7 days. The average property tax rate in Florida is 0.98% of the value of the property.
Georgia
The Georgia housing market is one of the fastest growing in the United States and it has held that title since 2010. Georgia remains an ideal destination for investors. Rehabbing used to be quite popular in Georgia, but is no longer as popular as it once was.
The eviction process is informal. Landlords do have to give tenants a 7-day notice of due rent, but it does not have to be written. After seven days, landlords are allowed to initiate court proceedings to remove the tenant from their property, if necessary.
According to WalletHub, the average property tax rate in Georgia is 0.92%, less than the national average of 1.1%.
Arizona
Property taxes in Arizona are one of the lowest in the country at only 0.72% of the property’s value. Landlords are allowed to increase the rent on their property after a 30-day notice. Also, there are different types of notices a landlord can issue to terminate a rental agreement.
- A five-day notice is sent to tenants whose rent is due
- A five-day notice is given to tenants who failed to take care of the property
- A ten-day notice is given to tenants who have violated the lease or rental agreement
- An “Unconditional Quit Notice” is issued to tenants who have committed criminal activities within the premises or have an unreported criminal record.
Landlords may file an eviction lawsuit if tenants fail to comply and/or remedy violation issues within the stipulated period.
Indiana
The median price of a single family home in Indiana is around $185,800. The average rent for a small apartment in Indianapolis is about $1,020, according to RentCafe. This price-to-rent ratio in Indiana’s housing market is the pull factor for a lot of investors.
However, this is not the only reason Indiana is a landlord friendly state. Indiana state laws allow landlords to hold security deposits for up to 45 days. Landlords can use this time to determine how much they need to deduct from the deposit on any damages done by the tenant. Eviction requires only a ten-day notice before landlords can begin court proceedings.
Michigan
Michigan is another landlord-friendly state with less restrictive policies on rental rates and fees. Landlords are allowed to deduct from the deposit to cover damages that exceed normal wear and tear. If the tenant moves out of the property, the landlord can retain the deposit for up to a month.
Lease adjustments can be made after a 30-day notice, provided a clause in the lease agreement allows it. Michigan’s property tax rate is, however, more than the effective national average at 1.64%.
North Carolina
North Carolina’s housing market has gained the attention of real estate inventors of late and buyers are rushing to the state’s major cities, especially Charlotte and Durham. Taxes are low in NC, at a median property tax rate of 0.78%.
For non-payment of rent, landlords have to give their tenants a ten-day notice before starting the eviction process. But a landlord is not obligated to renew the lease or rental agreement. In this case, the landlord has to give a:
- Two-day notice if the lease was week-to-week
- Seven-day notice if the lease was month-to-month
- One-month notice if the lease was year-to-year
Lease violations do not require any minimum notice before eviction proceedings.
Ohio
Number eight on our list of landlord friendly states is the Buckeye State, Ohio. Tenants that default on rent payments are required to vacate the premises after receiving a 3-day notice from the landlord.
There are no limits on the amount of a security deposit. The security deposit must be returned within 30 days of the tenant leaving the property. It can be used to cover property damage exceeding normal wear and tear. However, Ohio has the 13th highest property tax rate in the US at 1.48%.
Texas
The Lone Star State has the seventh highest property tax rate in the US at 1.83%. Despite this, landlord-tenant laws in Texas are very landlord friendly and attract a lot of investors to the state.
Similar to Ohio, there are no limits on security deposits, at the state level. Also, landlords and tenants can enter into their own eviction agreement concerning repairs. This means you can have clauses that excuse you from paying for repairs if the tenant is late with their rent.
Tenants are given a 3-day notice before they are evicted if they violate their lease. You can withhold the security deposit for 30 days after the tenant has moved out to inspect the property and account for damages.
Arkansas
Arkansas has no implied warranty of habitability. This warranty ensures that a property is in good order and can be occupied by people. This means that landlords are rarely responsible for repairs or maintenance of a property, unless stated in the lease.
Arkansas imposes few restrictions on landlords and the two parties are free to make a rental arrangement that suits them. There are no rent control guidelines and landlords are allowed to charge as much as they consider reasonable.
However, for both oral and written leases, landlords must give notice of the rent increase at least one rental period in advance.
In Arkansas, even model tenants can be evicted. Landlords can terminate a lease for any reason. The landlord, however, must give the notice one rental period in advance or as stipulated in the lease agreement. Security deposits can be held for 60 days after a tenant’s departure.