Legal Matters & Taxes The 5 Most Tenant Friendly States in 2020 by Yassine Ugazu February 15, 2020February 13, 2020 by Yassine Ugazu February 15, 2020February 13, 2020 Being a landlord involves navigating a wide range of challenges. Between dealing with high tenant turnover rates, the tenant not paying rent, and a myriad of property management responsibilities, it is safe to say that landlords have their hands full when it comes to operating a rental property. In addition to the aforementioned issues, they also have to deal with rental laws that lean heavily towards the tenant depending on their location. So what are the most tenant friendly states in 2020? And what should you watch out for when buying rental property in such states? Keep reading as we reveal the 5 most tenant friendly states 2020 and outline some of the regulations that landlords need to know about in order to navigate the least landlord friendly states. Related: The Ultimate Beginner’s Guide to Becoming a Landlord What Are Some of the Features of Tenant Friendly States? As you would expect, landlord tenant laws vary from one state to another. A key point of difference between them is how the tenant landlord relationship is regulated. For example, some states favor the tenant in almost every situation whereas others give landlords a lot of leeway in terms of enforcing their terms. Here are some of the aspects in which tenant friendly states favor the renter: Security deposit limits: Unlike Florida, most tenant friendly states set a maximum amount that can be charged for the security deposit. Repair policies: Some tenant friendly states allow tenants to deduct all repair costs from rental payments. Landlord access to the premises: Landlords might be required to provide sufficient notice before entering the property. Termination notices for violation of rental terms: Some jurisdictions don’t allow a unilateral termination for a violation of rental terms. Rent control: Certain states restrict rental increases. Rent control laws are not ideal for landlords since recurring expenses can increase on a yearly basis while rental income hits a plateau. The eviction process: In tenant friendly states, eviction is often a tedious process that can drag on for up to 6 months. 5 Most Tenant Friendly States in the US Let’s now check out the 5 most tenant friendly states in the 2020 US housing market. 1- Vermont Vermont has been one of the most tenant friendly states for years now. The state imposes a 60-day rent increase notice on landlords and sets a 14 -day deadline for returning security deposits. Moreover, the tenant is given a lot of latitudes when it comes to withholding rent and deducting expenses from it. For example, tenants have the right to stop rental payments if the landlord fails to provide certain essential services. In addition to this, they can also deduct repair costs from these payments. Here are some other extra regulations that favor the tenant: Landlords need to provide a 48-hour notice before entering the premises Termination for nonpayment of rent is subject to a 14-day notice Tenants can recover abandoned properties within 60 days of receiving a notice Vermont Real Estate Market Data Airbnb rental income: $2,239 Traditional rental income: $2,710 Airbnb cash on cash return: 2.1% Traditional cash on cash return: 4.5% Median property price: $313,094 2- Delaware The Delaware housing market is not particularly landlord friendly. In fact, the tenant enjoys a host of privileges in the state. Much like Vermont, they are allowed to withhold rent when services are not provided and can deduct most repair expenses from monthly payments. As for notice periods, the landlord is required to provide a 5-day notice for nonpayment termination, 7 days for a lease violation, 48 hours for rental property entry, and 7 days for recovering an abandoned property. Delaware Real Estate Market Data Airbnb rental income: $2,529 Traditional rental income: $1,472 Airbnb cash on cash return: 3.3% Traditional cash on cash return: 1.3% Median property price: $362,097 3- Oregon Oregon stands out as one of the most tenant friendly states in the country. Besides requiring long notice periods on every action taken by the landlord, Oregon became the first state to impose a statewide rent control law. Under these new regulations, rent increases are capped at 7% + inflation within a 12 month period. The rate of inflation, in this case, is based on estimates by the Consumer Price Index for Western states. Oregon Real Estate Market Data Airbnb rental income: $2,606 Traditional rental income: $1,658 Airbnb cash on cash return: 2.4% Traditional cash on cash return: 0.9% Median property price: $477,465 Related: Oregon Housing Market 2019: Why and Where to Invest 4- Rhode Island This state might not be the first place you think of when you’re trying to figure out where to buy investment property, but in reality, the Rhode Island real estate market is quite strong. The only downside from a landlord’s perspective is the relatively strict rental laws. In fact, the notice periods for regular termination and termination for violation of terms are fairly long and the tenant can deduct all repair expenses from their rent. Rhode Island Real Estate Market Data Airbnb rental income: $2,827 Traditional rental income: $1,856 Airbnb cash on cash return: 2.2% Traditional cash on cash return: 0.87% Median property price: $465,246 5- Nevada The law for tenants in Nevada is highly favorable. As it is the case with most tenant friendly states, landlords cannot terminate the lease or initiate eviction proceedings without providing sufficient notice. Nevada’s law also allows tenants to halt rent payments if the landlord infringes on occupancy regulations or fails to provide essential services. Nevada Real Estate Market Data Airbnb rental income: $2,765 Traditional rental income: $1,392 Airbnb cash on cash return: 4.0% Traditional cash on cash return: 1.4% Median property price: $420,607 Related: Here Are the 3 Best Places to Buy a Vacation Home in Nevada The Bottom Line The fact that some states favor tenants should not deter you from becoming a landlord. In fact, owning a rental property in tenant friendly states can be a smooth and profitable venture as long as you know what to watch out for. Use the Mashvisor Property Finder and start looking for the top-performing income properties right now! You should also check out our blog to learn more valuable tips for landlords. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. Start Your Investment Property Search! START FREE TRIAL DelawareLandlordNevadaOregonTenantsVermont 0 FacebookTwitterGoogle +PinterestLinkedin Yassine Ugazu Yassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate. Previous Post What Is the Best Way to Invest in Real Estate in 2020? Next Post How to Turn Your Tiny Home into an Investment Related Posts 5 Cities Where Airbnb Is Illegal in 2019 Chain of Title in Real Estate: The Complete Guide The War on Airbnb New York 2018 Learn All About the 1031 Exchange Rules for Investment Property Everything to Know About Real Estate Investing in 5 Simple Points What Is a Real Estate Limited Partnership? How to Report Airbnb Income on Tax Return: Investor’s Guide What Are the Main Benefits of 1031 Exchange? Everything You Need to Know About Depreciation on Rental Property Special Assessment Tax: What is it? Does Airbnb Washington DC Make for a Good Real Estate Investment? Real Estate Investor’s Guide: What Is Rent Control? Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.