As a rental property owner, you want to have control over your investment. While you’re free to buy property anywhere in the U.S., each state has its own set of landlord-tenant laws. While these laws generally favor tenants in many states, there are some states that are friendlier to landlords.
If you’re searching for landlord-friendly states to invest in, there are a number of things to look out for:
- Eviction process: If you end up with a bad tenant who doesn’t pay rent or has damaged your property, you may need to evict them quickly. In some states, the eviction process may take months. In landlord-friendly states, however, the process is faster and less complicated.
- Property taxes: Regardless of where you’re investing in real estate, you’ll have to pay yearly taxes on your property. If you own a rental property in a state with a high tax rate, you’ll pay higher property taxes than you would for a property of the same type and size in a state with a lower property tax rate.
- Rent control: This is a government-run program that places restrictions on when and how often rental rates can be increased. Rent control laws vary greatly based on the city and state. Ideally, you want to buy a rental property in a market that doesn’t limit rent rates or has more lenient regulations on rent increases.
- Other rules: As a real estate investor and a landlord, it’s also helpful to be cognizant of other rules and regulations related to lease agreements, lease termination, security deposit timelines, property access notices, maintenance, and repair issues. Depending on which state you buy in, these rules may lean more toward your favor.
Tip: Calling up a few property managers in the state you’re interested in is a great way to get local insight from professionals who are up to date on these types of rules and regulations.
Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors
2400 E. Arizona Biltmore Circle
Phoenix, AZ 85016