The United States of America holds massive potential for those who want to build their wealth in the real estate sector as landlords, thanks to some of the landlord friendly states in the country. However, as laws for landlords and tenants vary from state to state, you can’t just dive head first into the real estate market and buy a rental property expecting benefits to come your way overnight. You need to do your research and make a well-informed choice, and that’s what this post is intended to help you with.
In this post, we’ll take a look at the top landlord friendly states in the United States in 2020 and some of the vital laws that make them the top states. Today, landlords stand to benefit a lot by renting or leasing out properties in these states:
Located in the south-central region of the United States. The state of Arkansas is regarded for its geographical diversity as it is home to mountain ranges such as the Ouachita and the Ozark and also to lowlands like the Arkansas Delta and Gulf Coastal Plain. Over the years, Arkansas’ economy has rapidly been developed and diversified.
- At 0.63%, Arkansas has the tenth-lowest effective property tax rate in the USA.
- Landlords can take their time (within 60 days) to return the security deposit of their tenants.
- Landlords can also enjoy a quick eviction process, as they can terminate tenants immediately if they make a five-day late payment of rent.
- For other violations of the rent agreement, landlords can give tenants up to 14 days to vacate the property.
2. West Virginia
Located in the southeastern part of the United States. Referred to fondly as ‘The Mountain State,’ which is apt considering that it is a part of the Appalachian Mountains. West Virginia’s real estate laws make it even more relaxed for landlords than that in Arkansas:
- The eighth-lowest effective property tax rate in the USA at 0.59%.
- Landlords can take up to 65 days to return the security deposit amount to tenants.
- No limit on security deposit that can be charged by landlords.
- Tenants are not allowed to withhold rent, even if they have had to pay out of their own pockets for essential repairs.
- West Virginia landlords can enjoy the quickest eviction process, as they are not required to provide any notice to tenants.
A state located in the USA’s southeastern extremity, Louisiana, is a melting pot of cultures, and this is due to the state’s multilingual and multicultural origins. Considered one of the most culturally diverse states, Louisiana boasts of a mixture of Native American, Haitian, Spanish, Italian, French, and African cultures. Let’s look at why Louisiana is such a great state for landlords:
- The third-lowest effective property tax rate in the USA at 0.53%.
- Landlords can charge as much security deposit as they want, and they have up to 30 days to return the amount.
- But, tenants can deduct essential repair charges from the rent.
- While landlords do have to give the notice to terminate a rent agreement, tenants have only five days to move out, regardless of the violation.
When it comes to rental properties, landlords need as much security as tenants, and the three states we’ve covered here are ideal for protecting landlords’ rights. Depending on the local political climate, these states can stay landlord-friendly for a long time to come. Some other states that are known for their
Hi, my name is Michael Avent. I founded The Multifamily Review in 2020. I’m a Commercial Agent at Northcap Multifamily located in Las Vegas, Nevada. My vision for The Multifamily Review is to be the most trusted resource for all Multifamily Investors and Industry Professionals. We strive to offer the best and most up to date content to our readers and are always open for suggestions. Make sure you sign up to join our newsletter to stay up to date on our latest blog, ebook, and more exclusive content that’s coming your way! The Multifamily Review team and I look forward to building a deeper relationship with you!
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