You should take the time to research how lease agreements, evictions, and security deposits are handled in any state you’re considering becoming a landlord. The implications of these laws can be substantial, so you won’t want to overlook this step.
For instance, what would happen if your tenant were to stop paying rent? Of course, you would want to evict them so that you could continue collecting passive income. Since you own the property, you would think that you would hold the power to make this happen quickly, but some states actually favor tenants more than landlords.
As you might know, I purchase most of my rental properties in Indiana. In Indiana, the legislation has no tolerance for renters who don’t pay their agreed upon rental amount. In Indiana, the eviction process is quick and painless.
Every state has variances is in how they handle these types of situations. Make sure you’re also informed on what the security deposit can be used for, and how long you as the landlord have to return the funds to the tenant.