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Updated over 5 years ago,
Landlord-tenant laws rankings by state
This post marks the start of a journey to decide what state then area is the best place to invest in buy and holds. In general there are many criteria to consider when deciding what area to invest in like cash on cash return (cashflow v. appreciation), school quality, crime rate, etc. Since my risk appetite is not one for large losses (even if rare), there is one piece of data would overrule all the other commonly talked about data points when deciding the best area to invest in, landlord-tenant laws. In particular, how difficult/lengthy is it from the time a tenant stops paying rent to when they are evicted and the search for a new tenant can begin. Even with great tenant screening, if you have enough doors and your investing career is extended on a long enough timeline, you will need to evict a tenant. I dont have experience with being a landlord in any state aside from Colorado and I have not yet had to evict a tenant.
There are several articles below which show similar top states that are landlord friendly repeatedly. Whether those articles equate to an echo chamber is up to the reader to decide. I figured that I would create this one stop shop for landlord-tenant laws ranking by state and let the more experienced audience of the forum chime in with their more specific knowledge to either strike out a state that is marked landlord friendly or talk up a state that is marked as tenant friendly. Thanks for your input.
Texas
Indiana
Colorado
Arizona
Florida
Texas
Indiana
Colorado
Arizona
Florida
Kentucky
Georgia
Mississippi
Texas
Indiana
Colorado
Georgia
Kentucky
Arizona
Texas
Indiana
Florida
Colorado
Landlord friendly eviction in priority order:
Colorado
South Dakota
Georgia
Montana
West Virginia
Tenant friendly eviction in priority order:
Maryland
Massachusetts
Pennsylvania
Tennessee
Vermont
Article 6 (full 50 state rankings with more specifics to why the states are ranked this way)
Ranked from most landlord friendly to least
West Virginia
North Carolina
Georgia
Wyoming
Louisiana
Idaho
Mississippi
Colorado
Ohio
Indiana
Florida
New York
Alabama
Illinois
Texas
South Carolina
Connecticut
Missouri
Maryland
Virginia
Utah
Michigan
New Mexico
North Dakota
Oklahoma
Iowa
Wisconsin
Tennessee
Kentucky
Montana
Massachusetts
California
Pennsylvania
New Jersey
New Hampshire
Minnesota
Washington
South Dakota
Kansas
Nevada
Maine
Alaska
Oregon
Nebraska
DC
Arizona
Rhode Island
Delaware
Hawaii
Vermont
Since laws around eviction are potentially the most costly for a landlord, it warrants a look at state/area eviction data. This provides an interesting data point from two lenses when looking at whether a state is landlord friendly. Areas with high eviction rates/counts are areas with a lower quality tenant base. The other side of that coin is that areas with low eviction rates/counts may be low because the lawful process of eviction is so tenant friendly that landlords do not execute it as often as the higher eviction areas with swifter due process. It is not clear to me how to interpret this data without more context, like from the above sites.
The data easily manipulated The data reported by this site are admittedly not perfect. Their data does not include cash for keys or illegal lockout scenarios as part of the eviction rate/count. Their report shows more details as to how the eviction data was calculated.
List of states with simple landlord/tenant laws
Alabama
Alaska
Arkansas
California
Colorado
Connecticut
Delaware
Idaho
Indiana
Iowa
Kentucky
Maine
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
New Hampshire
North Carolina
Ohio
Oregon
Rhode Island
Virginia
Washington
Wisconsin