{"id":157,"date":"2024-10-14T10:16:21","date_gmt":"2024-10-14T10:16:21","guid":{"rendered":"https:\/\/myrealestatearticle.com\/?p=157"},"modified":"2024-10-14T10:16:21","modified_gmt":"2024-10-14T10:16:21","slug":"anti-landlord-laws-worst-cities-states-for-investors","status":"publish","type":"post","link":"https:\/\/myrealestatearticle.com\/?p=157","title":{"rendered":"Anti-Landlord Laws: Worst Cities &amp; States for Investors"},"content":{"rendered":"<div class=\"et_pb_section et_pb_section_4 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_11\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_14  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_13  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><strong>The Big Picture on The Worst Cities and States For Landlords:<\/strong><\/p>\n<p>Many cities and states have implemented strict eviction processes, making it harder and more time-consuming for landlords to remove non-paying or problematic tenants. Eviction bans, long court delays, and mandatory mediation periods are some of the hurdles landlords face when trying to regain possession of their properties.<\/p>\n<p>Portland, OR, and New York City are among the worst cities for landlords due to strict tenant protections, like rent control and no-cause eviction bans.<\/p>\n<p>State and local regulations vary greatly, with some areas favoring tenants more, complicating the process for rental investors in cities like Los Angeles and Chicago.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_section et_pb_section_5 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_12\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_15  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_image et_pb_image_5\">\n<p>\t\t\t\t<span class=\"et_pb_image_wrap \"><\/span>\n\t\t\t<\/p><\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_13\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_16  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_14  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><strong>The last time I had to evict a tenant in Baltimore, it took me 11 months to get him out.\u00a0<\/strong><\/p>\n<p><span>Over that time, he took advantage of Baltimore\u2019s extremely tenant-friendly laws to prolong the eviction. When I finally got him out nearly a year later, he punched holes in every kitchen cabinet, broke the bathroom door, and tore up the flooring purely out of spite.\u00a0<\/span><\/p>\n<p><span><strong>I tell this story any time I hear na\u00efve landlords say that landlord-tenant laws don\u2019t matter \u201cas long as landlords treat people fairly.\u201d<\/strong> <\/span><\/p>\n<p><span>Think of that argument as the landlord\u2019s equivalent: \u201cOnly guilty people worry about privacy or police misconduct.\u201d<\/span><\/p>\n<p><span>So Deni and I put together a list of the least landlord-friendly <\/span><span>cities and states, at least from a rules and regulations standpoint. I no longer invest in any of these cities and recommend avoiding them.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><strong>State Landlord-Tenant Law Rankings<\/strong><\/h2>\n<p><span><strong>All states have their landlord-tenant act, which creates the rules landlords and tenants must follow. <\/strong>Some favor property owners, while others favor tenants.\u00a0<\/span><\/p>\n<p><span>Landlord-tenant regulations cover items like:<\/span><\/p>\n<p><a href=\"https:\/\/sparkrental.com\/security-deposits-5-common-costly-landlord-mistakes\/\" target=\"_self\" rel=\"noopener\"><span>Security deposit rules<\/span><\/a><span> and limits<\/span><br \/>\n<span>Late fee limits and mandatory grace periods<\/span><br \/>\n<span>Returned payment fee (NSF fee) limits<\/span><br \/>\n<span>Eviction warning notice periods<\/span><br \/>\n<span>Advance notice required before landlords can enter their properties<\/span><\/p>\n<p><span><strong>Unlike cities (more on them momentarily), state landlord-tenant laws vary along a continuum.<\/strong> Our friends at RENTCafe helped us put together this landlord-friendly interactive map of the US states to showcase which states are landlord-friendly, neutral, or renter-friendly.<\/span><\/p>\n<p><span><\/span><\/p>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_code et_pb_code_0\">\n<div class=\"et_pb_code_inner\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_15  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><span><strong>Note that pink to brown indicates the least landlord-friendly states, while green indicates laws more friendly to investors and landlords, and where it\u2019s easiest to evict unruly, non-paying tenants.<\/strong><\/span><\/p>\n<p><span>For each state, we have a quick reference <\/span><a href=\"https:\/\/sparkrental.com\/category\/state-law-summaries\/\" target=\"_self\" rel=\"noopener\"><span>summary of landlord-tenant laws<\/span><\/a><span>.<\/span><\/p>\n<p><strong>Out of the worst landlord-friendly states to own rental property in, Vermont takes the throne with a 10\/100 rating. <\/strong><\/p>\n<p><span>Arkansas and West Virginia, meanwhile, share the joint number one spot out of the list of <span>states with landlord friendly laws.<\/span><span> For a quick view, here are the top 10 states that are the most landlord-friendly.\u00a0<\/span><\/span><\/p>\n<p><strong>State<\/strong><\/p>\n<p><strong>Landlord Friendliness Score<\/strong><\/p>\n<p><span>West Virginia<\/span><\/p>\n<p><span>87.5<\/span><\/p>\n<p><span>Arkansas<\/span><\/p>\n<p><span>87.5<\/span><\/p>\n<p><span>Texas<\/span><\/p>\n<p><span>62.5<\/span><\/p>\n<p><span>Wyoming<\/span><\/p>\n<p><span>75<\/span><\/p>\n<p><span>Georgia<\/span><\/p>\n<p><span>75<\/span><\/p>\n<p><span>Louisiana<\/span><\/p>\n<p><span>75<\/span><\/p>\n<p><span>North Carolina<\/span><\/p>\n<p><span>75<\/span><\/p>\n<p><span>Idaho<\/span><\/p>\n<p><span>72.5<\/span><\/p>\n<p><span>Ohio<\/span><\/p>\n<p><span>70<\/span><\/p>\n<p><span>Mississippi<\/span><\/p>\n<p><span>70<\/span><\/p>\n<p><span><span><\/span><\/span><\/p>\n<p><span><span><\/span><\/span><\/p>\n<p><span>Now, if you need a reminder of how landlord regulations can impact your bottom line, look no further than <\/span><a href=\"https:\/\/sparkrental.com\/eviction-moratorium\/\" target=\"_self\" rel=\"noopener\"><span>federal and state eviction moratoriums<\/span><\/a><span>.\u00a0<\/span><\/p>\n<p><span>Personally, I avoid investing in all states that have regulations that favor renters, and stick with states that are at least neutral, and preferably investor-friendly.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><strong>10 Worst Cities with Anti-Landlord Laws<\/strong><\/h2>\n<p><span><strong>Most towns and cities don\u2019t impose their own additional landlord-tenant rules on top of state laws.<\/strong> But a few particularly tenant-friendly cities feel the need to put harsher restrictions on landlords.\u00a0<\/span><\/p>\n<p><span>As you review our list of the <\/span><a href=\"https:\/\/sparkrental.com\/best-cities-for-real-estate-investing-by-grm\/\" target=\"_self\" rel=\"noopener\"><span>best cities for real estate investing<\/span><\/a><span> by rent\/price ratio, consider too the state and local laws. In some cases, there\u2019s a reason why some cities offer high <\/span><a href=\"https:\/\/sparkrental.com\/cap-rates-a-non-nerds-quick-guide-to-capitalization-rates\/\" target=\"_self\" rel=\"noopener\"><span>cap rates<\/span><\/a><span> \u2014 landlords still struggle to make money there.\u00a0<\/span><\/p>\n<p><span>Without further ado, here are ten cities to avoid as a rental investor.<\/span><span><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_code et_pb_code_1\">\n<div class=\"et_pb_code_inner\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_16  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h3><strong>1. Portland, OR<\/strong><\/h3>\n<p>A few people have asked if Oregon is a landlord-friendly state. Well, no, it\u2019s not.\u00a0<strong><\/strong><strong><\/strong><\/p>\n<p><strong>Oregon is already one of the best states for renter\u2019s rights. Portland, however, adds even stricter regulations, making it the worst city in the country for landlords.\u00a0<\/strong><\/p>\n<p><strong>Portland bans \u201cno-cause evictions,\u201d an intentional misnomer that refers to landlords opting not to renew a tenant\u2019s <a href=\"https:\/\/sparkrental.com\/lease-agreement-packages-state-specific\/\" target=\"_self\" rel=\"noopener\">lease agreement<\/a><\/strong><span><strong>.<\/strong> That also applies to \u201csubstantial\u201d changes in lease terms, and rent increases of 10% or more in 12 months.\u00a0<\/span><\/p>\n<p><strong>If the landlord does any of these, they must pay the <a href=\"https:\/\/www.portland.gov\/phb\/rental-services\/renter-relocation-assistance\" target=\"_blank\" rel=\"noopener\">tenant relocation assistance<\/a> in the following amounts:<\/strong><\/p>\n<p><span>Studio or Single Room Occupancy (SRO): $2,900<\/span><br \/>\n<span>1 Bedroom: $3,300<\/span><br \/>\n<span>2-Bedroom: $4,200<\/span><br \/>\n<span>3 Bedroom or larger: $4,500<\/span><\/p>\n<p><strong>Also, landlords must give renters at least 90 days\u2019 notice of any rent increases, a detailed explanation of tenants\u2019 rights, and an outline of relocation assistance amounts if applicable.\u00a0<\/strong><\/p>\n<p><span>Then, there are the security deposit restrictions. If landlords collect the last month\u2019s rent upon lease signing, they can collect a maximum of half a month\u2019s rent for the security deposit. <strong>If they don\u2019t collect the last month\u2019s rent upfront, they can collect a maximum of one month\u2019s rent for the security deposit. <\/strong><\/span><\/p>\n<p><span>Landlords must pay the tenant interest on their security deposit and provide an accounting of all deductions within one week of move-out, plus a full rental history report and a detailed list of the tenant\u2019s legal rights.\u00a0<\/span><\/p>\n<p><strong>Given Portland\u2019s low cap rates and returns, it\u2019s no surprise that most local or legacy landlords bought a long time ago. Invest elsewhere.\u00a0<\/strong><\/p>\n<p>\u00a0<\/p>\n<h3><strong>2. New York, NY<\/strong><\/h3>\n<p>Given the amount of real estate in its biggest city, I\u2019m not surprised if people are wondering if New York\u00a0is a landlord-friendly state\u2014and it is. <strong>But surprising absolutely no one, New York <em>City<\/em> makes life extremely difficult for landlords.<\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><span>It enforces the country\u2019s largest and most complicated system of rent control and rent stabilization. Removing a rental unit from rent control to charge market rates is difficult and far from certain.\u00a0<\/span><\/p>\n<p><strong>Landlords may not charge late fees over $50 or 5% of the rent, whichever is higher. Late fees cannot take effect without a minimum five-day grace period.\u00a0<\/strong><\/p>\n<p><span>In the event of evictions, the City gives all tenants free access to legal aid services to help them fight landlords in court. <strong>Compounding matters, landlords who fail to dot every I and cross every T in\u00a0<\/strong><\/span><strong><span><a href=\"https:\/\/sparkrental.com\/eviction-process-step-by-step-what-you-need-to-know-before-eviction\/\" target=\"_self\" rel=\"noopener\">eviction <\/a><\/span>now face criminal prosecution and a fine of at least $1,000.\u00a0<\/strong><\/p>\n<p><strong>When tenants violate their lease agreement, landlords must wait at least 30 days before starting the eviction process, during which time tenants are allowed to cure the violation.\u00a0<\/strong><\/p>\n<p><span>During the pandemic, the City froze all rent increases. <strong>Real estate prices jumped, but rents were locked.\u00a0<\/strong><\/span><\/p>\n<p><strong>Again, don\u2019t buy rental properties in New York City and find other landlord-friendly cities on the list.<\/strong><\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_14\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_17  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_17  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><em>(article continues below)<\/em><\/p>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_divider et_pb_divider_6 et_pb_divider_position_ et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_18  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h5>Ditch Your Day Job: How to Retire Early with Rental Income (Free 8-Video Course)<\/h5>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_image et_pb_image_6 free-course et_animated et-waypoint\">\n<p>\t\t\t\t<a href=\"https:\/\/sparkrental.com\/category\/spark-blog\/general-property-management\/#freecourse\" target=\"_blank\" rel=\"noopener\"><span class=\"et_pb_image_wrap \"><\/span><\/a>\n\t\t\t<\/p><\/div>\n<div class=\"et_pb_button_module_wrapper et_pb_button_2_wrapper et_pb_button_alignment_center et_pb_module \">\n\t\t\t\t<a class=\"et_pb_button et_pb_button_2 free-course et_pb_bg_layout_light\" href=\"https:\/\/sparkrental.com\/category\/spark-blog\/general-property-management\/#freecourse\">Learn How to Replace Your Paycheck<\/a>\n\t\t\t<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_15\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_18  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_divider et_pb_divider_7 et_pb_divider_position_ et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_divider_8 et_pb_space et_pb_divider_hidden\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_19  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h3><strong>3. Washington, DC<\/strong><\/h3>\n<p><strong>The nation\u2019s capital is another terrible place to be a landlord.\u00a0<\/strong><\/p>\n<p><span>Landlords must obtain a housing business license and a certificate of occupancy and register the property with the Rental Accommodation Division (RAD), which is part of the Department of Housing and Community Development (DHCD), among other red tape.\u00a0<\/span><\/p>\n<p><span><strong>Then come the disclosure requirements. Landlords must deliver a pamphlet published by the Rent Administrator that explains, in detail, the laws and regulations governing the implementation of rent increases and petitions permitted to be filed by housing providers and tenants.<\/strong> The Office of the Tenant Advocate also published a copy of the Tenant\u2019s Bill of Rights. Then, at the end of every calendar year, the owner must post where the tenants\u2019 security deposits are held and the interest rate for the preceding six months.<\/span><\/p>\n<p><strong>The District also limits landlords\u2019 annual rent increases and mandates a minimum five-day grace period before landlords can charge a late rent fee.<\/strong><\/p>\n<p><span><strong>Finally, DC limits how many people can occupy bedrooms of certain sizes \u2014 and puts the onus on the landlord to enforce their rules.<\/strong> For a single person to occupy a bedroom, it must have at least 70 square feet. The room must have at least another 50 feet for each additional occupant.\u00a0<\/span><\/p>\n<h3><\/h3>\n<h3><strong>4. Baltimore, MD<\/strong><\/h3>\n<p><span><strong>I grew up in Baltimore and once owned 15 properties there.<\/strong> I will never own real estate in Baltimore again.\u00a0<\/span><\/p>\n<p><span><strong>To begin with, landlords must register all rental units with the City of Baltimore and the State of Maryland, pay both fees for each unit,<\/strong> get a use and occupancy permit, and have each rental unit tested and inspected for lead-based paint between every tenancy. Landlords must provide a copy of the lead inspection certificate with the lease agreement.\u00a0<\/span><\/p>\n<p><strong>If the property is located in a flood zone, landlords must give the tenants notice upon signing a lease.<\/strong><\/p>\n<p><strong>Landlords must give tenants a minimum ten-day grace period before charging a late fee, which is capped at 5% of the rent.\u00a0<\/strong><\/p>\n<p><span>Non-paying tenants have many ways to delay evictions. A few examples include:<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Lack of functional and sufficient laundry, cooking, or dishwashing facilities,<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Lack of functional refrigeration or air conditioning,<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Lack of proper maintenance, or<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Lack of specified recreational facilities.<\/span><\/p>\n<p><strong>I\u2019ve had more encounters with \u201c<a href=\"https:\/\/sparkrental.com\/underworld-how-to-spot-professional-tenant-vampires\/\" target=\"_self\" rel=\"noopener\">professional tenants<\/a>\u201d than I can count. In that 11-month eviction, the tenants broke the equipment in the property to delay the eviction.\u00a0<\/strong><\/p>\n<p><span>Making matters worse, Baltimore recently banned \u201cno-fault evictions\u201d like some of the other cities on this list. <strong>Landlords can\u2019t non-renew a tenant without \u201cjust cause,\u201d such as moving into the property themselves, making major renovations, or permanently removing the property from the rental market.\u00a0<\/strong><\/span><\/p>\n<p><span>Baltimore also now requires landlords who own ten or more units with a security deposit of at least 60% of the rent to offer one of two alternatives to a traditional security deposit: pay the deposit in three monthly installments or purchase \u201crental security insurance.\u201d<\/span><\/p>\n<p><strong>I don\u2019t invest here anymore, and you shouldn\u2019t either.\u00a0<\/strong><\/p>\n<h3><\/h3>\n<h3><strong>5. Detroit, MI<\/strong><\/h3>\n<p><span><strong>Detroit requires all rental properties with one or two units to be inspected by a third-party company licensed by the City of Detroit.<\/strong> They must also pass lead paint inspections between each tenancy, register with the City, and obtain a Certificate of Compliance.\u00a0<\/span><\/p>\n<p><strong>In other words, there is endless red tape just to rent out a property. <\/strong>No thanks.\u00a0<\/p>\n<p><span>If it sounds fun, enjoy reading <\/span><a href=\"https:\/\/detroitmi.gov\/sites\/detroitmi.localhost\/files\/2021-04\/Landlord%20Guide%204-13-21.pdf\" target=\"_blank\" rel=\"noopener\"><span>Detroit\u2019s 25-page instruction manual<\/span><\/a><span> for landlord compliance.\u00a0<\/span><\/p>\n<p><strong>Oh, and you can\u2019t\u00a0<\/strong><span><span><strong>charge felonies against applicants when you\u00a0<a href=\"https:\/\/sparkrental.com\/tenant-screening-renter-screening\/\" target=\"_self\" rel=\"noopener\">screen tenants,<\/a>\u00a0either.<\/strong> They call this the \u201c<a href=\"https:\/\/detroitmi.gov\/departments\/civil-rights-inclusion-opportunity-department\/about-crio\/civil-rights-team\/fair-chance-ordinance\" target=\"_blank\" rel=\"noopener\">Fair Chance Ordinance, \u201c<\/a> which I\u2019m sure comforts the neighboring tenants<\/span>\u00a0when violent felons move in next door.\u00a0<\/span><\/p>\n<p><span>Landlords must register a structure with\u00a0<a href=\"https:\/\/detroitmi.gov\/departments\/buildings-safety-engineering-and-environmental-department\/bseed-divisions\/property-maintenance\" target=\"_blank\" rel=\"noopener\">BSEED Property Maintenance within 30 days of it becoming vacant<\/a>. This requires\u00a0more inspections and red tape.\u00a0<\/span><\/p>\n<p><span>Failure to comply with any of these complex landlord regulations means hefty fines, by the way.\u00a0<\/span><\/p>\n<p><strong>I suggest investing in any of the thousands of other cities and towns in states that have the best landlord laws, instead.\u00a0<\/strong><\/p>\n<h3><\/h3>\n<h3><strong>6. Chicago, IL<\/strong><\/h3>\n<p><strong>When Chicago landlords sign a lease agreement with a tenant, they must provide a security deposit receipt, keep the deposit in an interest-bearing account, and pay the tenant interest, which is set by the city comptroller and probably way lower than what the bank pays you as a depositor.\u00a0<\/strong><\/p>\n<p><span>Landlords must also provide tenants with a copy of the RLTO (Residential Landlord Tenant Ordinance).<\/span><\/p>\n<p><span>Failure to provide any of this results in heavy fines for you as the landlord.\u00a0<\/span><\/p>\n<p><span><strong>If the heat breaks in your property, you can face fines of up to $500 per day if it remains broken.<\/strong> Landlords must also pay to eliminate all bed bug infestations, regardless of whether the tenants brought them into the property.\u00a0<\/span><\/p>\n<p><span><strong>Worst of all, tenants can break their lease agreement and move out early, and the landlord must make a \u201cgood faith effort\u201d to find a replacement tenant.<\/strong> If a \u201creasonable\u201d sub-tenant is available to move in, the landlord must accept them without charging the early mover any fees for breaking the lease.<\/span><\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_16\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_19  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_20  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><em>(article continues below)<\/em><\/p>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_divider et_pb_divider_9 et_pb_divider_position_ et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_divider_10 et_pb_space et_pb_divider_hidden\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_21  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h5><a href=\"https:\/\/sparkrental.com\/investment-property-loans\/\" target=\"_self\" rel=\"noopener\">Want to compare investment property loans?<\/a><\/h5>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_divider_11 et_pb_space et_pb_divider_hidden\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_22  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><a href=\"https:\/\/sparkrental.com\/investment-property-loans\/\" target=\"_self\" rel=\"noopener\"><\/a>What <strong>short-term fix-and-flip loan<\/strong> options are available nowadays?<\/p>\n<p>How about <strong>long-term rental property loans<\/strong>?<\/p>\n<p>We compare several buy-and-rehab lenders and several long-term landlord loans on LTV, interest rates, closing costs, income requirements and more.<\/p>\n<\/div><\/div>\n<div class=\"et_pb_button_module_wrapper et_pb_button_3_wrapper et_pb_button_alignment_center et_pb_module \">\n\t\t\t\t<a class=\"et_pb_button et_pb_button_3 et_pb_bg_layout_light\" href=\"https:\/\/sparkrental.com\/investment-property-loans\/\" target=\"_self\" rel=\"noopener\">Compare Investor Loans<\/a>\n\t\t\t<\/div>\n<div class=\"et_pb_module et_pb_divider_12 et_pb_space et_pb_divider_hidden\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_divider et_pb_divider_13 et_pb_divider_position_ et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div><\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_17\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_20  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_23  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h3><strong>7. Los Angeles, CA<\/strong><\/h3>\n<p><span><strong>Over 85% of LA\u2019s rental units fall under rent control.<\/strong> Even I, who knew that California wasn\u2019t exactly a landlord-friendly state, was shocked at that figure. You can <\/span><a href=\"http:\/\/zimas.lacity.org\/\" target=\"_blank\" rel=\"noopener\"><span>check a property\u2019s rent control status here<\/span><\/a><span>.\u00a0<\/span><\/p>\n<p><span><strong>Landlords may not raise the rent by more than 4% per year.<\/strong> This changes, however, so landlords must check with the City of LA before <\/span><a href=\"https:\/\/sparkrental.com\/6-tricks-to-raise-rents-without-losing-tenants\/\" target=\"_self\" rel=\"noopener\"><span>raising the rent<\/span><\/a><span>.\u00a0<\/span><\/p>\n<p><span>Tenants now have the right to sue landlords violating coronavirus protection regulations. I<strong>f successful, tenants can win <em>$10,000 per violation<\/em> ($15,000 if the tenant is disabled or a senior). Before suing, a tenant must notify the landlord of an alleged breach, and the landlord has 15 days to address it.<\/strong><\/span><\/p>\n<p><span>If the tenant wants the landlord to perform repairs or upgrades, they can contact the Housing and Community Investment Department (HCID), initiating a city inspection process. This process is a nightmare for landlords, who can expect inspectors to have a field day pointing out changes they want landlords to make to their own properties.<\/span><\/p>\n<p><strong>And, of course, landlords can\u2019t non-renew tenants at the end of their lease term without \u201cjust cause.\u201d\u00a0<\/strong><\/p>\n<p><span>\u00a0<\/span><\/p>\n<h3><strong>8. San Francisco, CA<\/strong><\/h3>\n<p><strong>Is it just me, or are none of these cities surprising?<\/strong><\/p>\n<p><strong>San Francisco also limits rent increases, with current regulations restricting landlords to 1.7% through February 28, 2025.\u00a0<\/strong><\/p>\n<p><span>Landlords must register each rental unit with the Rent Board (which costs money, of course). Failure to register, license, or follow other red tape typically results in the landlord\u2019s inability to evict the tenant.\u00a0<\/span><\/p>\n<p><span><strong>For that matter, landlords can\u2019t non-renew tenants without \u201cjust cause,\u201d just like several other anti-landlord cities on this list.<\/strong> If, for example, the landlord wants to move into their property and they non-renew the tenant, they must move into the property within three months and continue living there for at least three years. If they fail to do either, they must return the rental unit to the old tenant for the original rent amount.\u00a0<\/span><\/p>\n<p><span>In a particularly quirky landlord law, landlords must reduce the rent if the view from their unit gets obstructed. <strong>So, the landlord\u2019s property value plummeted because someone else built a new building, and the rent changed mid-lease.\u00a0<\/strong><\/span><\/p>\n<p><strong>That\u00a0<span>said, San Francisco boasts the worst cap rates and <a href=\"https:\/\/sparkrental.com\/gross-rent-multiplier\/\" target=\"_self\" rel=\"noopener\">gross rent multiplier<\/a> in the country. This is just<\/span>\u00a0one more reason not to invest there.\u00a0<\/strong><\/p>\n<p><span>\u00a0<\/span><\/p>\n<h3><strong>9. Dekalb, IL<\/strong><\/h3>\n<p>All right, I spoke too soon. There is a surprise on this list. <strong>Has anyone outside of Illinois ever heard of Dekalb? I certainly hadn\u2019t, and seeing Illinois is a landlord-friendly state just doubles the surprise.\u00a0<\/strong><\/p>\n<p><span><strong>Landlords must provide a copy of the lease agreement in writing when the lease is signed.<\/strong> If tenants violate local codes or ordinances, the landlord must send them written notice or confront them face-to-face. Failure to do either comes with fines for the landlord.\u00a0<\/span><\/p>\n<p><strong>You can\u2019t prohibit subletting, either.\u00a0<\/strong><\/p>\n<p><span>Landlords must register all units (with a fee, of course) and complete a mandatory training course before being granted a license. F<strong>urther, they must designate a resident agent who lives in Dekalb County. This agent serves lawsuits on your behalf.\u00a0<\/strong><\/span><\/p>\n<p><span>Truly.\u00a0<\/span><\/p>\n<p><span>\u00a0<\/span><\/p>\n<h3><strong>10. Philadelphia, PA<\/strong><\/h3>\n<p><span><strong>Rounding out the ten worst cities for landlords is the City of Brotherly Love.<\/strong> Who also doesn\u2019t want you to buy rental properties there?<\/span><\/p>\n<p><span>Like most of the cities on this list, landlords must register all units with the city\u2019s Fair Housing Commission. Which:<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Ensures rental properties are safe, healthy, and in good condition.<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Verifies that landlords have necessary rental licenses and certificates.<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Educates tenants and landlords on their rights and responsibilities.<\/span><\/p>\n<p><span>o \u00a0 <\/span><span>Connects landlords and tenants to services and assistance.<\/span><\/p>\n<p><strong>And when tenants violate their lease agreement, and you serve them with an <a href=\"https:\/\/sparkrental.com\/free-tenant-letters-eviction-notices\/\" target=\"_self\" rel=\"noopener\">eviction notice<\/a>, the City appoints them a free attorney to defend against the eviction. Good luck getting them out of your property, no matter how they broke your lease\u2019s rules.\u00a0<\/strong><\/p>\n<p><span>\u00a0<\/span><\/p>\n<h2><strong>Final Thoughts On Landlord vs Tenant-Friendly States<\/strong><\/h2>\n<p><strong>I\u2019ve heard many landlords shrug their shoulders at tenant-friendly rules and regulations. They glibly reply, \u201cIf landlords follow the rules, they have nothing to fear from the law.\u201d<\/strong><\/p>\n<p><span>I can tell you firsthand <em>that\u2019s not true.\u00a0<\/em><\/span><\/p>\n<p><strong>I follow landlord-tenant laws to the letter. And I\u2019ve been burned by tenant-friendly laws time and again.\u00a0<\/strong><\/p>\n<p><span>It\u2019s your money; invest it wherever you like. But I will never invest in tenant-protective cities or states again, no matter how appealing the cap rates look on paper. <strong>It\u2019s not worth the headaches, red tape, and endless eviction process when the tenant breaks the rules, and you pay the price.\u00a0<\/strong><\/span><\/p>\n<p><span>Consider <\/span><a href=\"https:\/\/sparkrental.com\/scott-land-investing\/\" target=\"_self\" rel=\"noopener\"><span>investing in land<\/span><\/a><span> as an additional way to invest in real estate. <strong>I now invest as much inland as I do in rental properties, with no fears of tenant lawsuits, evictions, fines, registrations, or any regulation-related hassles.<\/strong><\/span><strong><span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><span>What are your greatest concerns about landlord-tenant regulations? Have you been burned by them before? Where and how?<\/span><\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<h4>More Real Estate Investing Reads:<\/h4>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_18\">\n<div class=\"et_pb_column et_pb_column_1_3 et_pb_column_21  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_text et_pb_text_24  et_pb_text_align_center et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><a href=\"https:\/\/sparkrental.com\/how-to-deal-with-bad-contractors\/\" class=\"entry-featured-image-url\" target=\"_self\" rel=\"noopener\"><span class=\"et_overlay et_pb_inline_icon\"><\/span><\/a><\/p>\n<h5 class=\"entry-title\"><a href=\"https:\/\/sparkrental.com\/how-to-deal-with-bad-contractors\/\" target=\"_self\" rel=\"noopener\">How to Deal with Bad Contractors<\/a><\/h5>\n<\/div><\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_3 et_pb_column_22  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_text et_pb_text_25  et_pb_text_align_center et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><a href=\"https:\/\/sparkrental.com\/cheapest-real-estate-in-the-us\/\" class=\"entry-featured-image-url\" target=\"_self\" rel=\"noopener\"><span class=\"et_overlay et_pb_inline_icon\"><\/span><\/a><\/p>\n<h5 class=\"entry-title\"><a href=\"https:\/\/sparkrental.com\/cheapest-real-estate-in-the-us\/\" target=\"_self\" rel=\"noopener\">Where\u2019s the Cheapest Real Estate in the US? Should You Invest in It?<\/a><\/h5>\n<\/div><\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_3 et_pb_column_23  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_26  et_pb_text_align_center et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\"><a href=\"https:\/\/sparkrental.com\/squatters-rights\/\" class=\"entry-featured-image-url\" target=\"_self\" rel=\"noopener\"><span class=\"et_overlay et_pb_inline_icon\"><\/span><\/a>\n<h5 class=\"entry-title\"><a href=\"https:\/\/sparkrental.com\/squatters-rights\/\" target=\"_self\" rel=\"noopener\">What Are Squatters Rights? State-by-State Guide to Squatters Rights<\/a><\/h5>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_section et_pb_section_6 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_19\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_24  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_27  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h4>I want to know more about\u2026<\/h4>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_20\">\n<div class=\"et_pb_column et_pb_column_1_4 et_pb_column_25  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_blurb et_pb_blurb_0  et_pb_text_align_center  et_pb_blurb_position_top et_pb_bg_layout_light\">\n<div class=\"et_pb_blurb_content\">\n<div class=\"et_pb_main_blurb_image\"><a href=\"https:\/\/sparkrental.com\/advertising-tenant-screening-learning-zone\/\" target=\"_self\" rel=\"noopener\"><span class=\"et_pb_image_wrap\"><span class=\"et-waypoint et_pb_animation_top et_pb_animation_top_tablet et_pb_animation_top_phone et-pb-icon\">Z<\/span><\/span><\/a><\/div>\n<div class=\"et_pb_blurb_container\">\n<h4 class=\"et_pb_module_header\"><a href=\"https:\/\/sparkrental.com\/advertising-tenant-screening-learning-zone\/\" target=\"_self\" rel=\"noopener\">Advertising &amp; Tenant Screening<\/a><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_4 et_pb_column_26  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_blurb et_pb_blurb_1  et_pb_text_align_center  et_pb_blurb_position_top et_pb_bg_layout_light\">\n<div class=\"et_pb_blurb_content\">\n<div class=\"et_pb_main_blurb_image\"><a href=\"https:\/\/sparkrental.com\/leasing-new-tenancies-learning-zone\/\" target=\"_self\" rel=\"noopener\"><span class=\"et_pb_image_wrap\"><span class=\"et-waypoint et_pb_animation_top et_pb_animation_top_tablet et_pb_animation_top_phone et-pb-icon\">l<\/span><\/span><\/a><\/div>\n<div class=\"et_pb_blurb_container\">\n<h4 class=\"et_pb_module_header\"><a href=\"https:\/\/sparkrental.com\/leasing-new-tenancies-learning-zone\/\" target=\"_self\" rel=\"noopener\">Leasing Issues<\/a><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_4 et_pb_column_27  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_blurb et_pb_blurb_2  et_pb_text_align_center  et_pb_blurb_position_top et_pb_bg_layout_light\">\n<div class=\"et_pb_blurb_content\">\n<div class=\"et_pb_main_blurb_image\"><a href=\"https:\/\/sparkrental.com\/renter-property-management-learning-zone\/\" target=\"_self\" rel=\"noopener\"><span class=\"et_pb_image_wrap\"><span class=\"et-waypoint et_pb_animation_top et_pb_animation_top_tablet et_pb_animation_top_phone et-pb-icon\">\ue035<\/span><\/span><\/a><\/div>\n<div class=\"et_pb_blurb_container\">\n<h4 class=\"et_pb_module_header\"><a href=\"https:\/\/sparkrental.com\/renter-property-management-learning-zone\/\" target=\"_self\" rel=\"noopener\">Renter &amp; Property Management<\/a><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_4 et_pb_column_28  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_blurb et_pb_blurb_3  et_pb_text_align_center  et_pb_blurb_position_top et_pb_bg_layout_light\">\n<div class=\"et_pb_blurb_content\">\n<div class=\"et_pb_main_blurb_image\"><a href=\"https:\/\/sparkrental.com\/passive-income-personal-finance-learning-zone\/\" target=\"_self\" rel=\"noopener\"><span class=\"et_pb_image_wrap\"><span class=\"et-waypoint et_pb_animation_top et_pb_animation_top_tablet et_pb_animation_top_phone et-pb-icon\">\ue0ed<\/span><\/span><\/a><\/div>\n<div class=\"et_pb_blurb_container\">\n<h4 class=\"et_pb_module_header\"><a href=\"https:\/\/sparkrental.com\/passive-income-personal-finance-learning-zone\/\" target=\"_self\" rel=\"noopener\">Passive Income &amp; Personal Finance<\/a><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_row et_pb_row_21\">\n<div class=\"et_pb_column et_pb_column_1_2 et_pb_column_29  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_text et_pb_text_28  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h4>Connect with us on social!<\/h4>\n<\/div><\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_6 et_pb_column_30  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_image et_pb_image_7\">\n<p>\t\t\t\t<a href=\"https:\/\/www.facebook.com\/sparkrental\/\" target=\"_blank\" rel=\"noopener\"><span class=\"et_pb_image_wrap \"><\/span><\/a>\n\t\t\t<\/p><\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_6 et_pb_column_31  et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_module et_pb_image et_pb_image_8\">\n<p>\t\t\t\t<a href=\"https:\/\/www.instagram.com\/sparkrental\/\" target=\"_blank\" rel=\"noopener\"><span class=\"et_pb_image_wrap \"><\/span><\/a>\n\t\t\t<\/p><\/div>\n<\/div>\n<div class=\"et_pb_column et_pb_column_1_6 et_pb_column_32  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_image et_pb_image_9 et_pb_image_sticky\">\n<p>\t\t\t\t<a href=\"https:\/\/www.twitter.com\/sparkrental\/\" target=\"_blank\" rel=\"noopener\"><span class=\"et_pb_image_wrap \"><\/span><\/a>\n\t\t\t<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><span class=\"et_bloom_bottom_trigger\"><\/span><\/p>\n<p>The post <a href=\"https:\/\/sparkrental.com\/anti-landlord-laws-worst-cities-states-for-landlords\/\" target=\"_self\" rel=\"noopener\">Anti-Landlord Laws: Worst Cities &amp; States for Investors<\/a> appeared first on <a href=\"https:\/\/sparkrental.com\/\" target=\"_self\" rel=\"noopener\">SparkRental<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>The Big Picture on The Worst Cities and States For Landlords: Many cities and states have implemented strict eviction processes, making it harder and more time-consuming for landlords to remove non-paying or problematic tenants. Eviction bans, long court delays, and mandatory mediation periods are some of the hurdles landlords face when trying to regain possession [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":158,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management"],"_links":{"self":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/posts\/157"}],"collection":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=157"}],"version-history":[{"count":0,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/posts\/157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=\/wp\/v2\/media\/158"}],"wp:attachment":[{"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myrealestatearticle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}