5 Traits of Landlord Friendly States
In all states, landlords must abide by local and state laws. some states have laws that are more favorable than others. Consider these factors when evaluating which states will be best for your investment.
1. Property taxes and insurance rates
2. Regulations, licenses and compliance
3. landlord-tenant rights
4. Eviction Processes
5. Competition in the area
Take the time to research tax history on any potential investment properties. As housing prices and competition continue to grow, it’s important to factor in these added fees. All of these will make a difference to a investors bottom line.
Regulation, licensing and compliance
Many states require that property owners obtain special licensing. While this is normally an easy process it does take time and money. So it’s generally a good idea to research which states charge the lowest for these documents.
Landlord- tenant rights
Both landlords and tenants have rights in every state. However choosing a state that is considered landlord friendly means that more of these laws will favor the property owner. In order for you to run a successful rental property you want to stay clear of states where the laws generally side with the tenants.
No one wants to go into this process thinking about eviction but unfortunately as a property owner it’s something you should be prepared for. Of course when a tenant become a problem the property owner wants to know that they can remove the tenant in a timely manner. However some states make this process easier than others. So research local eviction processes in your area of interest.
The number one rule of real estate is location, location, location! However In landlord friendly states you may be facing a lot of competition! It would be wise to review the rental rate, the number of properties on the market and the real estate trends in the area.
10 landlord friendly states
Although taxes hover a bit higher than in other areas, landlord-tenant law is surprisingly friendly in Texas. The Lone Star State has many attractive advantages for landlords, including a system that seeks to preserve owner rights. Therefore, landlords with a legal and well-drafted rental agreement will have an easier time handling lease violations, evictions, non-payment, and complaints. In fact, landlords looking to evict a tenant for non-payment only need to issue a 3-day notice! Additionally, Texas law is lenient on how much landlords may charge as a deposit and whether repairs need to be completed when a tenant is behind on rent. So, Texas is one of the top landlord-friendly states in the country.
The best way to manage a property in any state!
If you choose to invest in a landlord friendly state or not, we hope this has helped opened your eyes to the benefits of it. It has also been shown that the best way to maximize your profit and see the most return in your rental property is by hiring a property management company.
The experts here at All County Property Management in Fort Worth will help owners in navigating laws, finding tenants, lease contracts, maintenance, marketing and more! We have a friendly staff to help guide you along the way so give us a call today!!!