Are you a landlord looking forward to investing your money in revenue-generating property? Then, it is important to select the right location. Some of the states obviously offer better opportunities for landlords than others.
Continue reading below as we discuss how you can pick the right location as a landlord, along with other factors such as varying laws, taxes, tenant pools, and how housing markets play a major role in this.

What Are the Best States for Landlords to Invest In Right Now?
If you’re considering expanding your real estate portfolio, you may be wondering, what are the best states for landlords to invest in?
When it comes to buy-and-hold real estate investing, landlords want markets with high rental demand, affordable property prices, favorable laws, and other conditions that support profitable investments.
The best places to invest tick all those boxes. Here are four of the top states for landlords to target right now.
Texas
Texas consistently tops the list of landlord-friendly states thanks to its strong economy, growing population, and landlord-friendly laws. Major metro areas like Dallas, Houston, and San Antonio have plentiful renters.
Texas allows landlords to remove tenants without giving a reason, has no rent control laws, and has no requirements on security deposits.
Property taxes and home prices also remain moderate. For all these reasons, Texas offers an ideal combo for rental property owners.
Ohio
Another emerging market for landlords is Ohio. Cities such as Columbus are experiencing rapid population and job growth, fueling demand for rentals. Ohio maintains below-average property tax rates for landlords.
You can also pursue evictions in just 2 weeks in Ohio, which is known as one of the locations with a quick processing time for evictions. With median home prices and affordable rental rates, Ohio provides an opportunity for high rental yields.
North Carolina
North Carolina is another pro-landlord state to put on your radar. Job and population growth around Charlotte, Raleigh, and other NC metros gives a healthy pipeline of renters.
North Carolina requires only 48 hours’ notice to show properties or make repairs.
They also allow landlords to charge tenants for damage repairs without restriction. With property taxes and home prices moderate, NC remains an attractive market.
Indiana
Cities such as Indianapolis, Fort Wayne, and Evansville are more affordable Midwest markets with strong demand from renters.
Indiana has no statutory limits on late fees or security deposits and maintains a swift eviction timeline. Between affordable properties and growing tenant pools, Indiana offers promising rental potential.
How Property Taxes and Regulations Affect Landlords in Different States
When evaluating the best rental markets, savvy real estate investors pay close attention to property tax rates and landlord-tenant regulations, which can dramatically impact returns.
Tax rates, eviction laws, rent control, and other rules vary widely across states and are key considerations when choosing investment locations as a landlord.
New Jersey and Illinois tend to be on landlords’ avoid lists, largely due to high effective property tax rates that drive up operating costs.
In the 2019 tax year, New Jersey had an average effective rate of 2.47%, and Illinois came in at 2.32%, both on the higher end nationally. For a $200,000 rental property, that could mean facing an annual tax bill of nearly $5,000 in Illinois.
Hawaii, Oregon, and California have more restrictive rental laws that can hamper landlords.
Rent control is in effect in dozens of cities, such as San Francisco, making it difficult for landlords to raise rents to market rates. Portland and other Oregon cities require 90-day notices for no-cause evictions.
Hawaii requires a landlord to prove a tenant violated rental terms in order to terminate tenancy. Implementing these rules with a strict timeline reduces landlord flexibility.
On the other side, states such as Texas, Indiana, and Michigan allow landlords more freedom with their terms.
For example, Indiana has no statutory limits on late fees or security deposits, while Michigan permits no-cause lease terminations with only 30 days’ notice.
While Tennessee and Colorado have also begun repealing restrictions like rent control and no-fault eviction bans amid landlord concerns.
Do your homework to understand the market conditions and legal landscape. While buying property out-of-state comes with challenges, the potential benefits in pro-landlord states could pay off.
Consider working with a property manager with strong local knowledge, companies offering property management in Atlanta can help set competitive rental rates.
The Benefits of Investing in States Known for Strong Landlord Protections
When you have rental properties generating income, you want the law on your side to protect your assets and ensure maximum returns. That’s why seasoned real estate investors often strategically invest in states that offer the strongest legal protections for landlords.
States like Texas, Georgia, and Indiana tip the scales toward owners rather than tenants when interpreting rental laws and addressing disputes.
These states allow landlords to remove tenants without giving a reason, charge unrestricted late fees, and recover damage costs from tenant deposits while safeguarding profit. For example, Georgia does not require any timeframe for returning tenant deposits after move-out.
States with strong landlord rights also enable you to act decisively when tenant problems arise, such as property damage or missed payments. In Florida, landlords can file for eviction after the tenant defaults on just one rental payment.
North Carolina has low notice requirements for entering the property or showing it to prospective tenants.
In Virginia, landlords can take tenants who don’t pay rent to court for possession of the unit after just five days. Acting right away against non-paying tenants is important to reduce losses from a delayed rent payment.
Final Words
By considering landlord-friendly locations, this can provide real estate investors a sense of security and confidence when starting their rental business.
Conduct thorough research before investing in these places to also gain control when expanding your rental portfolio.