Would We Ever Invest in Tenant-Friendly States?

May 13, 2026

AI Summary

5 min read

Hosts Dave Meyer and Henry Washington examine whether tenant-friendly states are off-limits for real estate investors or viable despite challenges like slow evictions and rent control. They argue it's not black-and-white, as these states often offer strong demand, rent growth, and appreciation. The discussion covers key laws, state differences, tradeoffs with returns, and mitigation strategies like underwriting and tenant screening.

Factors Shaping Landlord- Versus Tenant-Friendly Markets

Landlord-tenant laws hinge on several interconnected rules beyond just evictions. Notice periods before formal eviction can add weeks or months; short ones like three days in Texas, Florida, Ohio, Georgia, Arkansas, and Iowa speed things up for non-payment, while longer notices apply for other violations. "Just cause" rules in some states prevent mid-lease terminations without reason, such as selling the property—hosts see value in basic tenant protections but note it limits flexibility.

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What you'll learn

1 (00:00) **Intro to Tenant-Friendly States** - Hosts pose question if avoiding tenant-friendly states means missing opportunities due to strong demand and appreciation
2 (01:01) **Hosts' Personal Experiences** - Dave and Henry introduce themselves and share views on landlord-friendly markets
3 (01:28) **Eviction Process Factors** - Discussion of notice periods, eviction timelines, and just cause rules
4 (04:40) **State Eviction Timeline Examples** - Breakdown of fast vs slow eviction states using data
5 (05:46) **Underwriting for Evictions** - Strategies to prepare for long eviction timelines in deals
6 (08:43) **Trade-offs in Tenant-Friendly Markets** - Appreciation and demand often high despite regulations
7 (14:33) **Rent Control Downsides** - Hosts explain why rent control harms investors and renters long-term

+ Full timestamped outline available in the app

Show Notes

Are “tenant-friendly” states actually making investors richer? Ever since we started investing, people have always told us to invest in “landlord-friendly” states—places with quicker eviction laws, no or limited rent control, and fewer license requirements and fees. But most Americans will know that the top-appreciating markets like California, New York, Washington, and Hawaii are tenant-friendly.

Are investors leaving money on the table by not investing in these more regulated markets?

Today, we’re getting to the bottom of it. We’ll explain what a tenant-friendly vs. landlord-friendly state is, the real dangers of investing in a tenant-friendly state, whether rent control could kill your real estate investing business, and why not all “landlord-friendly” states are so friendly to your bottom line.

The question is: would we invest in any of these “riskier” markets for landlords? Yes, but with one big caveat. If you can lock one specific skill down, you can invest in the most tenant-friendly states without ever going through an eviction, and make huge appreciation along the way.

In This Episode We Cover

Landlord-friendly vs. tenant-friendly states: the biggest differences between the two

Do tenant-friendly states actually make investors more money?

Rent control, rental licenses, and long evictions: how to plan for all of them

States with the worst (and best) laws for real estate investors

Would we invest in a tenant-friendly state? And if so, how would we protect ourselves?

And So Much More!

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