The Best States In The U.S. For Landlords

A property key
  • Texas is one of the most landlord-friendly states for rental laws and regulations, with lenient tenant screening policies and landlords having complete discretion over rental prices.
  • Arizona offers a booming real estate market with relatively low taxes and more leverage for landlords when evicting problem tenants.
  • Florida has no personal income tax, low property taxes, and tenant protection laws, making it an attractive option for potential landlords.
  • Getting a lawyer knowledgeable in real estate law and creating written agreements with tenants when investing in rental properties is essential.
  • Landlords must also follow eviction laws carefully and take the time to screen potential tenants thoroughly.

Owning rental property can be an enriching experience—it is a significant investment and provides a steady income stream. That said, where you choose to invest your money matters. Different states offer landlord-friendly laws and regulations that make the ownership process smoother for landlords. Here are some of the best states in the U.S. for landlords to consider investing in rental properties.


Texas is your best option if you want a state welcoming to landlords. It is one of the country’s most landlord-friendly states regarding rental laws and regulations. In addition, it has some of the nation’s most lenient tenant screening policies, meaning landlords have more control over who they rent their properties out to.

Also, landlords have complete discretion when setting their rental prices and determining late fees for tenants who don’t pay on time. The best part is that rent prices are soaring in the state, giving you more freedom to increase your prices. On top of these benefits, Texas has some of the highest returns on investment (ROI) regarding rental properties, meaning you can sell at a profit when the time comes.

A home in Arizona


Arizona is another great state for rental property investments due to its booming real estate market and relatively low taxes compared to other states. It also offers landlords more leverage when it comes to evicting problem tenants.

Although this may seem a disadvantage, it’s beneficial since landlords will have fewer issues with tenants down the line since they can be swiftly dealt with should any arise. Like Texas, Arizona offers high ROI rates for its rental properties, with a staggering 27% ROI!


If you want a state with high potential, try out Florida. The state offers many advantages to potential landlords, including no personal income tax and relatively low property taxes compared with other states in its region (e.g., Georgia).

On top of that, Florida has robust tenant protection laws which limit how much landlords can raise rent prices and require them to provide written notice before entering a tenant’s unit or raising rents too drastically – this protects both tenants from being taken advantage of as well as making sure that landlords are getting fair compensation for their investments through reasonable rent prices.

A lawyer discussing regulations with landlord

Tips For a Smooth Start

Investing in rental properties can be highly lucrative if done correctly; choosing the right state makes all difference between success and failure as a landlord. While every state has its unique set of regulations and laws governing rentals, some stand out from the rest. If you want to have a smoother time being a landlord in these states, consider following the tips below:

Get a Lawyer

Every state has its laws governing rental properties and the landlord-tenant relationship. Therefore, it’s essential to consult an experienced real estate lawyer in the state you are investing in to ensure that you comply with the law and don’t run into legal trouble. They can also help you draft legal documents, including leases and rental agreements.

Create a Written Agreement

A written agreement should be created between landlords and tenants outlining the terms of the rental arrangement. This will ensure that both parties are aware of their rights and responsibilities so that any issues can be dealt with quickly and effectively.

Follow Eviction Laws

Eviction laws vary from state to state, so landlords must make sure they understand their local laws before proceeding with an eviction. In addition, it’s essential to take the necessary steps to legally evict a tenant if they have breached the terms of the lease agreement.

Screen Potential Tenants Carefully

It’s essential to take your time when screening potential tenants. Check their credit score, employment history, rental history, and references before deciding. You want to ensure they are reliable and responsible enough to pay rent on time and adequately take care of your property. This helps protect you from any financial losses or damage in the future due to an irresponsible tenant.

Being a landlord can be a challenging but rewarding experience. By investing in rental properties in the right state, you can make sure that your investment is profitable and successful. Consider these states if you want an easier time navigating the landlord-tenant relationship while also making a good return on your investment.

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