10 Cities Where You Don't Want To Be A Landlord

Investing in rental properties can be a lucrative business venture, but not all cities are equal in terms of landlord challenges.

Some cities impose high property taxes and strict landlord-tenant laws or have low rental demand, slow economic growth and job creation challenges.

For instance, because of its exceptionally tenant-friendly policies and stronger restrictions, Portland, Oregon, is ranked as the worst city in the U.S. for landlords, according to Spark.

The term "no-cause evictions," which refers to landlords choosing not to renew a tenant's lease agreement, is illegal in Portland. That also holds true for significant lease term adjustments and rent increases of 10% or more over the course of a year.

2. New York, NY

New York City boasts the nation's largest and most intricate rent control and stabilization system.

Charging tenants late fees exceeding $50 or 5% of the rent is forbidden. Late fees may only be implemented after a minimum five-day grace period.

In the case of lease violations by tenants, landlords are prohibited from initiating the eviction process for a minimum of 30 days to allow tenants to remedy the violation.

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3. Washington, DC

In the heart of the nation's capital, those who wish to lease properties must first obtain a housing business license and a certificate of occupancy, in addition to registering the property with the Rental Accommodation Division (RAD), which falls under the purview of the Department of Housing and Community Development (DHCD).

4. Baltimore, MD

To legally rent out a property in Baltimore, landlords must pay fees and register each unit with both the city and the state. They must also obtain a use and occupancy permit, which requires them to have each rental unit inspected for lead-based paint between each and every tenancy.

If a tenant fails to pay rent on time, landlords must provide a minimum of ten days grace period before imposing a late fee, which cannot exceed 5% of the monthly rent.

5. Detroit, MI

In Detroit, rental property owners of one or two units are obligated to get a certification of compliance by passing an inspection conducted by an authorized third-party company licensed by the City of Detroit. Also, landlords must ensure that the rental units pass the lead paint inspection before each new tenancy, and they must register their properties with the City.

6. Chicago, IL

In Chicago, landlords must abide by specific regulations when dealing with security deposits. They must furnish a receipt of the security deposit to the tenant and keep the deposit in an interest-generating account.

If tenants wish to leave the rental property before the lease agreement ends, landlords must make a good-faith effort to find a suitable replacement tenant. If a reasonable sub-tenant is available to take over the lease, the landlord must accept them without imposing any fees on the tenant who left early.

7. Los Angeles, CA

In Los Angeles, an overwhelming majority of rental units fall under the umbrella of rent control, with only a select few being exempt.

Landlords are not permitted to increase rent by more than 4% each year. However, those guidelines are subject to change, and landlords are advised to verify with the City of LA before implementing any rent hikes.

8. San Francisco, CA

Landlords must register each rental unit with the Rent Board. Failure to register or obtain licensing can lead to severe consequences, such as eviction restrictions or fines.

In addition, landlords must comply with the ordinance that mandates a reduction in rent charged if a tenant's view from the unit becomes obstructed.

9. Dekalb, IL

To ensure compliance with local codes and ordinances, landlords must provide written notice or have a face-to-face conversation with tenants who have violated such regulations. Non-compliance with this requirement can lead to fines for the landlord.

Further, landlords cannot prohibit subletting by their tenants, providing them with the freedom to sublet their rental unit to others with proper consent.

10. Philadelphia, PA

Finally, Philadelphia requires landlords to register all rental units with the Fair Housing Commission.

In case a tenant violates the lease agreement and the landlord serves them with an eviction notice, the City provides them with a free attorney to fight against the eviction.

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