SS54: Landlord Friendly States Vs. Tenant Friendly States
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing Landlord Friendly States Vs. Tenant Friendly States. What states are landlord friendly and what states should I avoid? This is a question asked over and over by new investors. Charles breaks down landlord laws and states to invest into and states to avoid. Why states lean one way verse another and what it could mean for your real estate investment if you choose the wrong state.
Links Referenced in Episode:
➞ Nolo – https://www.nolo.com/
➞ One of the main factors we use when deciding what markets to invest into is in what state they are located in. As a landlord that has owned properties in tenant friendly and landlord friendly states; governments in landlord friendly states work with landlords instead of against them.
➞ I operate and invest on the principal of going where I am treated best; I moved from CT to Florida in 2012 and I have not invested in a tenant friendly state since 2009 and have no plans of changing that.
➞ How do I know if a state is landlord friendly; easiest way is to find out when did COVID eviction moratoriums end there? Most landlord friendly states ended their statewide moratoriums in 2020 while others will still have eviction moratoriums for many years to come. Check NOLO.com; there is a wealth of information on researching landlord/tenant laws.
➞ Other than COVID eviction moratoriums; landlord friendly states prohibit rent control, allow landlords freedom in how much of a security deposit they can require, time to return that deposit, non-payment timeframe before filing an eviction and required timeframe for filing evictions for other violations. In tenant friendly states you will find all of these points skewed in the tenant’s favor.
➞ A simple example is in CT; rent was not late until after the 10th of the month (10-day grace period); in Florida, the grace period is up to the landlord and should be stated in the lease. Most leases have no grace period, meaning rent is due on the 1st and if not paid, landlords can provide tenant with a written notice to pay the rent or quit.
o In Florida you need to provide 12 hours of notice to enter an apartment in nonemergency situations compared with 48 hours’ notice in Vermont.
➞ You will find most landlord friendly states in the mid-South and Southeast; Texas, Arkansas, Alabama, Florida, Louisiana, Arizona, South Carolina, Wyoming, Mississippi
➞ Most tenant friendly states are in the Northeast and on the West Coast; New York, California, Oregon, Washington State, Vermont, Delaware, Rhode Island, Maine
➞ In closing, non-landlords may see landlords as being greedy by focusing their investment into only a portion of states but when we invest our money and when we accept investor funds; we need to have as much control as possible when managing and repositioning the asset and tenant friendly state just do not provide this. I choose to invest and live where I am treated best and I suggest you do the same.