Clayton Morris on How to Invest in Landlord Friendly States | Morris Invest

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Let’s talk about some metrics that make a state landlord friendly:
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Eviction process. Listen, evictions happen. I wish they didn’t, but they are part of the business. While you can never be totally immune from evictions, you can make sure the law is on your side. Before you invest in a market, you must have a solid understanding of what the eviction process looks like. All states have different eviction processes, but landlord friendly states have very little tolerance for non-paying tenants. Make sure you understand how long it takes to go through the eviction process, including whether you need a lawyer, and the specific steps you need to take to initiate an eviction.
Security deposits. Every state is going to have different laws around security deposits, including the maximum, what you can and cannot charge against it. Be sure you know your rights in this area before you invest.
The local economy. Another thing to consider is the health of the local economy. Looking at metrics like the vacancy rates, job growth, crime rates, and more can help you ensure that you’re investing in a healthy economy with great tenants, potential for growth, and high profits. In strong local economies, you’re going to see that people have expendable income, steady employment, and the desire to rent long-term. If they like the property and the school district, you’re going to see tenants who not only want to rent, but have the financial means to cover their rent payment every month.
Registrations and licenses. Certain states and cities require a ton of red tape — others, not so much. In general, a landlord friendly state is going to have fewer hoops and hurdles for you to jump through. Usually, this type of thing isn’t going to make or break your experience, but it’s certainly something to look out for. Be sure to find out what types of fees and forms you need to complete in order to be in compliance.
Rent control. Certain cities might set limits on how much you can charge for rent. Like everyone else, landlords experience the crunch of rising costs, and in my opinion, should be able to set or raise their rent at a fair market rate in order to cover expenses.
Access to multiple proven and effective property management companies. It’s also worth noting that an instrumental part of your success and profitability comes down to your property management team. They can help with many of the things we talked about today, including collecting rent, the eviction process, and more.