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The Top 10 Landlord-Friendly States

Jerry Norton

Aug 8, 2024

What is a landlord friendly state, and are you — as a real estate investor — living in one?

The phrase “location, location, location” is an often used phrase that is not just for home buyers — it’s also for real estate investors because some states offer laws that protect a landlord. 

In this article, we’ll break down what makes a state landlord friendly as well as the top landlord friendly states today. 

What Makes A State Landlord Friendly? 

Whether a state is landlord-friendly or not depends on it meeting certain criteria that make it appealing to the landlord and even puts the law in their favor. 

From landlord rights to the eviction process and license requirements, these factors all contribute to the state being considered landlord-friendly. 

Landlord-tenant laws 

The laws that govern landlord rights are different from state to state. So what is the law in New York may not apply in Florida — and neither may apply in California. 

States that are landlord-friendly have laws that work in the landlord’s favor, making it easier to terminate a lease, evict a tenant, or even enter an apartment. 

In a landlord-friendly state, the landlord can terminate a lease within a shorter timeframe than in states that favor the tenant. 

The eviction process 

The eviction process in landlord-friendly states isn’t as arduous as it is in other states that require longer-term notices in addition to processing and legal fees. 

It can take months to evict someone in a non-landlord-friendly state, which can be detrimental financially for a landlord. 

Landlord license requirements 

A state that doesn’t require a landlord to hold a license to rent out their property is highly attractive to a landlord. 

Property taxes 

Property taxes are less in landlord-friendly states. 

This helps these landlords to have greater profit margins with fewer operating costs. 

Other Factors

The state’s economy, rent control laws, and security deposit limits are other factors that make states either landlord-friendly or tenant-friendly. 

The 10 Most Landlord Friendly States 

Let’s take a look at the 10 most landlord-friendly states.

#1: Alabama

Alabama is one of the top landlord-friendly states due to it having the second lowest property taxes in the country. 

Landlords in Alabama enjoy one-month rent deposits and just seven days for tenants to pay late rent before the landlord can file for eviction. 

#2: Arizona

Landlords in Arizona do not require a license and only have to give tenants five days to pay late rent before receiving an eviction notice. 

They charge a month and a half security deposit, preempt rent control, and have a low property tax rate. 

All this plus warm temperatures attracting a large volume of retirees, the state is growing in population, making it a top state for landlords. 

#3: Colorado 

Colorado doesn't have deposit limits and there are no regulations on late fees, making it third on our list of landlord friendly states. 

If late rent is not paid by day 10, the landlord can file for eviction, unless they’re renting a single-family home, in which they only give the tenant five days to pay late rent before an eviction notice. 

This state preempts rent control as well. 

Rentals are up in the state that is second in the country for employment. 

#4: Georgia 

An eviction notice can be issued to a tenant within 24 hours of rent being late and do not have to notify tenants to enter an apartment. 

With low property taxes, no deposit limits, and preempted rent control, this state is a landlord's paradise. 

Coming in at number 12 for the best state economy, Georgia is in the top 10 for the best business environment, bringing in a consistent flow of renters. 

#5: Florida

Florida’s economy is on the rise and their property tax rate is low which is a great combination for a landlord-friendly state. 

Without deposit limits, rent control, late fee regulations, and the requirement of a license to rent a property, landlords are highly favored in this state. 

They are only required to give tenants three days to pay late rent before they file for eviction. 

#6: Illinois 

With Chicago being the 3rd largest city in America, Illinois attracts a consistent flow of renters while enjoying no deposit limits or late fee regulations. 

Preempting rent control is a big factor in the appeal to landlords. 

While landlords are required to acquire a license and a higher property tax rate than other landlord-friendly states, there is only a 5-day notice on late rent before eviction notices are served. 

#7: Indiana 

Indiana sees a large volume of renters due to being home to the most popular and high-ranked colleges in the country. 

Tenants are given 10 days to pay past rent or the eviction process begins and landlords can enter apartments by giving a reasonable notice with no regulated number of days. 

Without any deposit limits, license requirements, late fee regulations, and rent control, Indiana is a highly desirable state for landlords. 

8: North Carolina 

While North Carolina does have a deposit limit of two months, landlords preempt rent control and only give tenants 10 days before an eviction notice is served. 

No license is required and no entry notice is required for the landlord to go into any apartment. 

#9: Texas 

Whenever you have a warm weather state you have a steady flow of renters and Texas tops that list. 

Combine that with a growth in job opportunities and landlords can turn a great profit here. 

There are no deposit limits, rent control, or license requirements, and landlords do not have to provide notice to enter an apartment, landlords are required to give tenants 10 days' notice before filing for eviction. 

#10: Ohio 

With many highly ranked colleges in Ohio and a low cost of living, landlords do well here. 

There is no rent control, license requirements, late fee regulations, or deposit limits, and tenants are only given three days to pay past due rent before they receive an eviction notice. 

The Bottom Line: Landlord Friendly States 

Not all landlord-friendly states are created equal. Some have lower property taxes, while others have no restrictions or regulations on deposits, late fees, or license requirements. 

What these states do have in common is that the landlord has more factors on his side to help him run his business and turn a profit.