Where is the most landlord friendly place to own and manage rental properties? I have been researching a lot of areas around Canada and the USA to see how tenancy issues are handled. I will say, although there are many similarities, it is not consistent by state, province or country. That led me on a search to find the most landlord friendly place in Canada or the USA.
I want to be clear, I am not saying this is the best place to be a landlord or property manager (the vacancy rate runs at about 7.37%) , but the tenancy rules favor the landlord unlike anywhere else I have read about.
So, without further adieu – The most landlord friendly place in Canada or the USA is the state of Arkansas.
So, without further adieu – The most landlord friendly place in Canada or the USA is the state of Arkansas. According to Wikipipedia Arkansas is home to about 3 million people, and located in the south central area of the United States. According to the website Departmentofnumbers.com and Census ACS data 34.53% of households are renters.
Arkansas has the “failure to vacate” law which is a criminal statute that authorizes the state of Arkansas to impose fines and criminal penalties to tenants who fail to pay rent.
Source: Arkansas Legal Services Online
I know you are thinking that is pretty harsh, but it does not mean a landlord has to use this method of eviction. In fact they provide a choice. A landlord can use the civil courts and sue the non paying tenant (called an unlawful detainer lawsuit) . This is often the case, because the failure to vacate will force the non paying tenant out quickly, but will not cover the other expenses, like damage.
Why do they do it: Well; not paying rent is considered theft.
The tenant & Landlord relationship is looked at in a black & white way. If you want to remain a tenant you simply have to pay the rent and pay it on time.
What other measures make Arkansas landlord friendly, how about the following:
Landlords do not have to carry out any additional maintenance or repairs, other than what is in the lease or building code: Basically rental units can meet basic living requirements, and unless it causes a safety issue, violates a building code or specific listed item in the lease, landlords do not have to do anything.
Landlords can collect large security deposits: They do have a limit if they own 6 or more properties, but they can collect up to two months rent.
When a lease term ends the landlord does not have to renew: This is as long as they do not provide a reason that violates a human right (race, color, national origin, religion, sex, family status, or disability).
The eviction process starts quick: If a lease ends or the tenant has not paid rent the landlord can start the eviction process right away. The unlawful detainer method only requires 3 days notice to vacate. If they do not leave, the landlord can file a lawsuit against them. The tenant then has 5 days to object / file a defense. If they do not do anything including staying in the rented unit, similar to other areas a county sheriff can be sent to remove them. If the landlord decides to go the Failure to Vacate route they need to provide 10 days notice. If the tenant does not leave they will get fined $25 per day, and will get a summons to appear in court. They will need to prove they paid the rent. If not the process is pretty black & white.
Belongings left behind: If a tenant is evicted and they leave belongings behind, they are immediately considered abandoned. The landlord can dispose or sell them right away.
Criminal action evictions: These are on the books, but you will notice some seem a bit out dated. A three day eviction notice can be served if the tenant commits any of the following crimes in the property: illegal gambling, prostitution, and the illegal sale of alcohol.
To Sum it up
The basic fundamentals of a landlord & tenant relationship come down to rent being paid in full and on time. If this is not met, the relationship between the landlord & tenant will collapse. The Government tenancy rules in many areas of Canada, the USA and other parts of the world do not favor landlords, and tend to provide a lot of forgiveness to tenants that do not pay rent. I do not think a threat of a criminal charge or to be locked up in a debtors prison is the best solution, however, a faster eviction process with fast access to tenancy hearings is definitely needed in many areas.
Know of an area with better tenancy rules than Arkansas? Make sure to let me know.
Until next time,
Design your landlord experience,
Michael P Currie
Landlord by Design
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