What Are the Best States to Be a Landlord?

Becoming a landlord is a terrific way to grow wealth through passive income. Despite housing shortages, there are over 20 million rental properties nationwide in the United States. Investing in real estate and renting the units to tenants will help you cover your monthly mortgage payments while making money on the difference.

While owning rental properties sounds like a walk in the park, there are things you should know before you take steps to become a successful landlord. Looking at the best states to be a landlord will help you determine where to invest to maximize your profits and find the best tenants.

Fortunately for your investment future, you’re in the perfect spot to find the best states to become a landlord. Continue reading to start buying rental properties today!


Texas is the third-fastest growing state in the Union and an excellent place to invest in real estate. Many people move to the Lonestar State to enjoy the warm weather and lower tax burden compared to other states. There are also plenty of job opportunities for people willing to move to Texas.

There are other landlord benefits to consider, too. There’s no limit on deposit amounts and no landlord license requirements. Property taxes are also below two percent.


Arizona is another excellent option if you invest your hard-earned cash in real estate. It’s a primary option for people moving for a warmer climate. Many of these are snowbirds looking for places to rent in the winter.

Along with Utah, Arizona is a fast-growing state that has much to offer to new residents. The property tax rate is below one percent, making it beneficial for becoming a landlord. Work with experts to find the best properties, and See how we can help.


Colorado has an economy that is booming, making it another prominent place that people are moving to for a better life. It’s home to the second-strongest economy in the US, and the effective property tax is a hair over 0.5 percent. Colorado is an excellent choice of landlords since there are no deposit limits and zero late fee regulations.

Tenants have ten days to pay overdue rent or move out of the rental unit. You can also become a landlord without getting a license.


Alabama comes first when looking at the best states to be a landlord. The property tax rate is the second-lowest in the US, and landlords can charge up to one month’s rent for deposits. Tenants have seven days to pay overdue rent before landlords can file an eviction notice.

Find the Best States to Be a Landlord Today

Becoming a successful landlord takes hard work and research, and part of your strategy should be to start investing in real estate in the right places. The best states to be a landlord allow for more significant deposits and lower property tax rates. You don’t need a license to run your rental properties; you can evict tenants who fail to pay their rent.

Working as a landlord or property manager is a fulfilling career path that pays well. Read more of our Home and Real Estate blog content to make real estate investments work for you!