Most Landlord Friendly States 2024 List

In real estate, where you invest is just as important as what you invest in, as landlord-tenant laws can impact the profitability and manageability of any property. In this quick guide, we’ll share 2024's most landlord-friendly states for investors so that you can choose the right market and make a profit!

What Is a Landlord-Friendly State?

A landlord-friendly state has laws, regulations, allowances, and economic factors that benefit the landlord, protect their rights, and give them greater control over their rental property. These factors not only affect your rent rates, expenses, and cash flow but also your ability to enter a unit and evict a bad tenant.

Because some laws are specific to certain towns and cities, it’s worth niching down to specific neighborhoods when looking for a market to invest in. Even the most landlord-friendly states have counties where regulations lean in favor of the tenant!

1. Low Property Taxes

Property tax is a monthly expense that can quickly eat into your rental property cash flow. Look for states and counties with tax rates that fall below the national average.

2. Favorable Eviction Laws

Every investor deals with evictions at some point. A fast and straightforward eviction process can help you remove troublesome tenants and replace them with high-quality tenants with a shorter turnaround.

3. Favorable Insurance Rates

Insurance rates vary from one state or municipality to the next. If your property is in an area that is subject to crime or weather-related events, you can expect to pay higher insurance premiums.

4. Limited/No Rent Control

On one hand, rent control laws incentivize tenants to stay in their current homes. However, these same laws dictate how and when a landlord can increase rent, which may affect your profitability.

5. Short Notice Requirements

Most states require landlords to give residents at least 24 hours’ notice before entering their units, but some states require an even longer notice. The shorter the notice requirement, the sooner you can inspect a unit or make repairs.

6. Registration and License Requirements

Some states require landlords to become registered and licensed before renting out their investment properties. This raises the barrier to entry and creates additional costs for the investor.

7. Low Crime Rates

Crime rate is a significant economic factor affecting your ability to attract tenants and maintain your property. Generally, markets with low crime rates attract high-quality tenants and command higher rents.

8. A Strong Economy

A strong economy leads to higher wages and lower unemployment rates. As a landlord, this allows you to charge higher rents and source better tenants for your rental properties.

Looking to buy a stable, cash-flowing investment property? Rent to Retirement has turnkey rentals available in some of the most landlord-friendly states!

13 Best States to Be a Landlord

If you want to maximize your cash flow and maintain control of your rental property, you should invest in a landlord-friendly state. Here are the states where laws and regulations are most favorable to landlords and investors:

1. Alabama

With no rent control laws and the nation’s second-lowest property tax rates at just around .40%, Alabama is one of the best states for investing. Landlords have 60 days to return security deposits, as well as the ability to evict a tenant as soon as seven days after nonpayment or a lease violation.

Pros of Investing in Alabama

• No rent control
• Low property taxes
• Favorable eviction process
• 60 days to return security deposits

2. Texas

Texas is one of the most landlord-friendly states due to its lack of rent control and favorable eviction laws. Landlords are not required to issue a notice to pay or quit and may give a nonpaying tenant three days’ notice to move out at their discretion.

Pros of Investing in Texas

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

Is the Texas housing market the new real estate hotspot?

3. Illinois

Despite having the second-highest property tax rates in the country at 2.08%, Illinois has no rent, late fee, or security deposit limits. Landlords are also given up to 45 days to return security deposits after a tenant’s lease is up.

Pros of Investing in Illinois

• No rent control laws
• No late fee limit
• No security deposit limit
• 45 days to return security deposits

4. Ohio

Like Texas, Ohio allows landlords to give nonpaying tenants three days’ notice to vacate the unit. There are also very few restrictions on rent increases, fees, and security deposit amounts, giving landlords a clear path to higher rents and revenue.

Pros of Investing in Ohio

• No security deposit limit
• Three-day eviction notice

5. Florida

Florida is one of the fastest-growing and most landlord-friendly states, boasting below-average property tax rates and no limits on rent, security deposits, or late fees. Additionally, Florida allows landlords 60 days to return security deposits and just three days’ notice to pay or quit.

Pros of Investing in Florida

• No rent control
• No security deposit limit
• No late fee limit
• 60 days to return security deposits

Check out our full write-up on the Florida housing market!

Looking for High-ROI Investment Properties?

6. Indiana

At just .75%, Indiana’s average property tax rates fall comfortably below the national average, allowing landlords to hang onto a little extra cash flow each month. The state also has no security deposit limits, and landlords have up to 45 days to return them to tenants.

Pros of Investing in Indiana

• Low property taxes
• No security deposit limit
• 45 days to return security deposits

Learn more about the Indiana housing market!

7. Georgia

Georgia is one of the best states to be a landlord, as it has relatively low property taxes, no rent control or security deposit limits, and loose guidelines for eviction. Landlords decide how long nonpaying tenants have to pay their balance and have up to 45 days to return security deposits.

Pros of Investing in Georgia

• Low property taxes
• Fast eviction process
• No security deposit limit
• 45 days to return security deposits

8. Colorado

With the third-lowest property taxes in the nation and no rent control or deposit limits, Colorado gives its investors every opportunity to profit. Landlords can evict a tenant with a three-day notice to pay or quit and may hold security deposits for up to 60 days after leases end.

Pros of Investing in Colorado

• Low property taxes
• No rent control
• No security deposit limit
• 60 days to return security deposits
• Three-day eviction notice

9. Arizona

With no rent control in Arizona, landlords may set their own rent prices and increase them with a 30-day notice—assuming that this allowance is stated in the lease agreement. Arizona also has a short eviction timeline, allowing landlords to start the process with just a five-day notice to pay or quit.

Pros of Investing in Arizona

• Low property taxes
• No rent control
• Five-day eviction notice

10. North Carolina

Like many landlord-friendly states, North Carolina has relatively low property taxes and no rent control. What’s more, the state’s eviction laws allow landlords to issue unconditional quit notices to tenants who violate their leases.

Pros of Investing in North Carolina

• Low property taxes
• No rent control
• Zero-day eviction notice for violations

Looking to invest in the most landlord-friendly states? 

11. Kentucky

In Kentucky, median home prices are among the lowest in the country, making it an affordable place to invest. Landlords do not need a rental license, and the state has no limits on rent, security deposits, or late fees.

Pros of Investing in Kentucky

• Low property taxes
• No security deposit limit
• No late fee limit

12. Louisiana

Louisiana has some of the lowest property taxes in the nation and very few restrictions on rent prices, rent increases, security deposits, and late fees. Landlord-tenant laws also allow five-day eviction notices for unpaid rents and lease violations.

Pros of Investing in Louisiana

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

13. West Virginia

With affordable home prices, low property taxes, and no license requirements enforced at the state level, West Virginia offers a low barrier to entry for investors. Landlords also have 60 days to return security deposits and are only required to issue a five-day notice before starting the eviction process.

Pros of Investing in West Virginia

• Low property taxes
• No security deposit limit
• 60 days to return security deposits
• Five-day eviction notice

States to Avoid (Tenant-Friendly States)

While there are many states where laws work in favor of landlords, there are also states where they favor the tenant. If you’re a new investor or are wary of buying in a difficult market, you might want to avoid investing in these tenant-friendly states:

• California
• New York
• Washington
• Vermont
• Nebraska
• Rhode Island
• Massachusetts
• New Jersey
• Oregon
• New Hampshire
• Hawaii
• Connecticut
• Minnesota
• South Dakota
• Iowa

Stick to Landlord-Friendly States

Investing in a landlord-friendly state makes it easier for your property to cash flow, and Rent to Retirement has turnkey properties available in some of the best landlord-friendly states. Let’s find your next investment property!

Landlord-Friendly States FAQs

What States Are the Most Favorable to Landlords?

The best states to be a landlord include Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Louisiana, Kentucky, North Carolina, Ohio, Texas, and West Virginia. These states have laws and regulations that benefit investors and give them greater control over their rental properties.

Is New York a Landlord-Friendly State?

While New York properties command high rents, the state is considered tenant-friendly due to its restrictive policies. With rent control laws, certain eviction protections, security deposit caps, and just 14 days to return deposits, New York is a tough market for new investors to navigate.

What Are the Least Landlord-Friendly States?

The least landlord-friendly states include California, Connecticut, Hawaii, Iowa, Massachusetts, Minnesota, Nebraska, New Hampshire, New Jersey, New York, Oregon, Rhode Island, South Dakota, Vermont, and Washington. Investors in these states are often impacted by rent control, security deposit limits, drawn-out eviction processes, and other factors.