Episode 210: LEAST Landlord-Friendly Locations in the US and Why with Dr. Jennifer Salisbury
Summary
This episode defines “landlord unfriendly” markets as those with strict rent control, slow and tenant‑favoring evictions, tight rules on deposits and late fees, and heavy licensing and inspection requirements, all layered on top of high taxes, insurance, and operating costs. It then spotlights five especially difficult U.S. states for landlords—Massachusetts, Washington, Oregon, New York, and California—explaining how each combines aggressive tenant protections, detailed procedural rules, and long timelines that increase risk and reduce flexibility. Hawaii and New Jersey are added as honorable mentions, where high property taxes, strict security‑deposit laws, strong habitability standards, and formal, slow eviction processes demand professional‑level systems and reserves. The host emphasizes that what unites all these markets is a strong policy focus on tenant protection and housing affordability, which can help renters in the short term but also discourage investment and constrain supply, potentially pushing rents higher. The episode closes by stressing that successful landlords in these tough jurisdictions stay highly informed, compliant, and patient, and urges listeners everywhere to keep up with changing tenancy laws or hire local professionals while tuning in to future episodes in the series on the most and least landlord‑friendly locations.
Listen to the full episode :
This Week’s Blog Post:
Welcome to My Life as a Landlord, where we educate curious US and Canadian landlords, answer rental questions, and clear up confusions about all things housing. In today’s episode, I break down the most frustrating locations as a landlord to own and operate rentals in the United States. From restrictive rent laws to long eviction timelines and steep property taxes, some places just make it tough to turn a profit. If you’re thinking of investing or you already own property in one of these areas, this episode will help you understand what you’re up against and what to watch out for. When I say landlord unfriendly, I’m talking about places with policies that tilt in favor of tenants at nearly every step, including rent increase caps, strict rent control, long eviction procedures, strong tenant protections, tight limits on late fees, narrow windows on returning security deposits, complex licensing requirements, and rising cash flow pressures like property taxes and insurance costs.
Number Five and Four: Massachusetts and Washington State
At number five, Massachusetts combines high costs with strong tenant protections and an aggressive enforcement culture. Security deposit law is notoriously unforgiving, with detailed rules and penalties such as triple damages for mistakes. Evictions can be slow and complex, and even small technical violations can become very expensive problems. At number four, Washington State, including Seattle, adds strict tenant protections like capped late fees, long notice periods for rent increases, and just cause requirements. Rising costs like taxes and insurance continue to pressure landlords, while regulatory limits reduce flexibility, making careful budgeting and compliance essential.
Number Three: Oregon
At number three, Oregon stands out for rent control, strict deposit handling, and limits on terminating tenancies after the first year. No cause terminations are restricted, and landlords must rely on just cause with precise timing and wording. Deposits must be returned within strict timelines or face penalties, and tenants may deduct rent for habitability issues if not addressed promptly. Statewide rent control caps increases and requires long notice periods, limiting pricing flexibility and increasing compliance costs, especially in cities like Portland with additional rules.
Number Two and One: New York and California
At number two, New York, especially New York City, combines rent stabilization, slow eviction timelines, strict deposit rules, and high operating costs. Rent increases are tightly regulated, eviction timelines can stretch for months or even over a year, and penalties for missteps are significant. At number one, California presents an unusually tenant-friendly environment with statewide rent caps, local rent control overlays, just cause eviction rules, and strict deposit and compliance requirements. Rising operating costs often outpace allowable rent increases, and eviction processes are lengthy and procedure driven, requiring careful documentation and legal compliance at every step.
The Takeaway
What unites all these markets is a strong emphasis on tenant protection and housing affordability goals. While these rules can protect renters, they can also discourage investment and shrink supply, which pushes rents higher over time. Small landlords like you and me adjust strategies by screening carefully, maintaining properties well, keeping written records, and understanding local laws before investing. These locations are challenging, but not impossible. Successful landlords stay informed, stay compliant, and stay patient. Wherever your rentals are, laws can and will change, so you need to stay educated or work with professionals who understand the local landscape.