A Guide To The Most Landlord Friendly States

Operating as a landlord is an excellent way to pursue a career in real estate. However, the success of rental property owners depends on where they choose to invest. Some states are more landlord-friendly than...

Operating as a landlord is an excellent way to pursue a career in real estate. However, the success of rental property owners depends on where they choose to invest. Some states are more landlord-friendly than others, offering a host of advantages that facilitate long-term profits and financial independence.

What Factors Make States Landlord Friendly?

Each state has its own set of rules and regulations governing tenant-landlord relations, taxes, and insurance rates. Certain factors make some states more conducive to owning rental properties than others. While the appeal of these factors may vary for investors, the following six attributes are universally found in landlord-friendly states:

best states to be a landlord Eviction Process: Some states make it easier to evict bad tenants than others, exercising a low tolerance for lease violations. Landlord & Tenant Rights: Laws that balance the rights of tenants and landlords foster a more supportive environment for property owners. Rent Control: States with reasonable rent control regulations allow landlords to increase rents in response to inflation and rising expenses. Registration & Licenses: Some states require landlords to obtain specific registrations and licenses, creating potential financial burdens. Tax & Insurance Rates: Variances in property taxes and insurance rates affect rental property profitability, making low-tax states more appealing. Competition: Location remains a crucial factor in real estate investing, with some states having more competition than others.

Regulations After COVID-19: The COVID-19 pandemic led to temporary changes in rental property regulations. Many states have started relaxing these policies, allowing landlords to resume regular operations.

The Best States For Landlords In 2022 & 2023

While several states are known for their landlord-friendly environments, a few stand out as having inherent advantages. These states offer numerous benefits to landlords, making them ideal for investment:

  1. Texas
  2. Indiana
  3. Colorado
  4. Alabama
  5. Arizona
  6. Florida
  7. Illinois
  8. Pennsylvania
  9. Ohio
  10. Georgia
  11. Kentucky
  12. Michigan
  13. North Carolina


Texas is renowned for its landlord-friendly atmosphere. The state prioritizes landlords' rights, making it easier to handle lease violations and ensuring quick relief, compensation, or repossession of rental units when needed. Additionally, Texas offers affordable markets with increasing demand, making it an attractive option for investors.


Indiana's price-to-rent ratio, combined with attractive rental rates, makes it an appealing state for landlords. Laws governing security deposits heavily favor landlords, allowing sufficient time to assess damages caused by tenants before returning the deposit.


Colorado uniquely supports landlords by prioritizing their rights over tenants. The eviction process is streamlined, enabling landlords to swiftly address unpaid rent. Compliance notices are limited to 72 hours, with tenants having 48 hours to rectify the situation or vacate the property.

Alabama, Arizona, Florida, Illinois, Pennsylvania, Ohio, Georgia, Kentucky, Michigan, and North Carolina

These states offer various benefits, including low property tax rates, flexible eviction processes, fair security deposit regulations, and the ability to set rental rates and fees according to landlords' preferences.

best states for landlords


While great rental markets exist nationwide, some states are more favorable for landlords than others. Landlord-friendly states prioritize homeowners' rights, support eviction processes, and offer low property taxes. Consider these advantages when investing in rental properties to maximize profitability and mitigate risks. Take the time to research and understand the rules and regulations specific to your state.

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