by Mike Colpitts 
The Brief
- Selected in a major survey, Florida is the #2 best landlord state in the nation.
- No state income tax and low property tax rates attract investors to the Sunshine State.
- More than 250 days of sunshine in Fort Myers make it an attractive place to enjoy year-round or on vacation.
Florida was selected as the #2 best landlord state in the U.S. for investors in a new study conducted by TurboTenant, a company owned by landlords. Texas ranked as #1.
The study considered six criteria for its findings, including demand for rentals, the eviction process, property and other taxes and the bar to entry to become a landlord. With no state income taxes the Sunshine State and Texas took the two top spots.
Like in many other states, landlords can serve tenants a three day notice to get the ball rolling on the eviction process in Florida. But the entire eviction process is much faster in Florida than many other states, usually taking only three to four weeks.
Why Florida #2 Best Landlord State
With no state income tax and middle-of-the-road property tax rates (0.84%), operating costs in Florida are some of the lowest in the nation. No rent control, declining home prices and strong demand for rentals in much of Florida has landed the state near the top of the list.
More than 250 days of sunshine in Fort Myers, strong tourism driving most of the state with its beach cities and lots of tourist attractions, Southwest Florida is a landlord haven. Plenty of northerners seek rentals for year-round and seasonal living, making the area a hotbed for seniors during winter months. Remote workers bought homes during the pandemic in the Fort Myers area in unprecedented numbers.
Landlording in the wrong state can quickly turn into a nightmare. Hard-to-evict tenants, with high property taxes, and rent control can make being a landlord in some states a tough battle. Add higher expenses, management fees and increasing maintenance costs, some states make it very difficult to run at a profit without a huge downpayment. Out of control inflation can almost ruin being a landlord in some states.
Six of the top ten rental states are located in the southern half of the nation, making them an attractive destination for investors. The highest taxed states didn’t make the list at all.
Texas Tops 10 Landlord States
- Texas
- Florida
- Arizona
- Indiana
- Alabama
- Georgia
- North Carolina
- Ohio
- Kentucky
- Colorado
Home prices in Arizona are substantially above the national average, but landlords have plenty of other reasons to invest in the Grand Canyon State. A housing shortage helped drive rents up 72% in metro Phoenix from 2010 to 2022. Phoenix ranks #2 on the list of most promising municipal rental markets.
Indiana ranks as the 11th most affordable state in the country, just one tick above Alabama in median home prices. High occupancy rates and average rents around $1,500 for a single family home create reliable cash-flow potentials and quick returns for investors.