Odds are, you’re familiar with the term “squatting:” moving into someone else’s home without permission. But it used to mean something very different, and laws that protect squatters were never meant to enable the kind of squatting we see today.
Squatting goes back to the very beginning of our history, when pioneer families expanded west and “claimed” land without buying it from the government. During the Great Depression, it took on new meaning. Destitute workers established shanty towns in open, empty areas, usually on public land. They didn’t purchase the property or pay rent, but they didn’t take shelter or income away from other families in the process. Squatter’s Rights were passed to protect these encampments. Some states also passed laws that gave default property ownership to people who lived in long-abandoned buildings for many years.
Today, squatting is more akin to trespassing, theft and vandalism, and our laws aren’t doing enough to protect the rights of property owners.
California Squatter’s Rights
In California, “squatter’s rights” gives people “adverse possession” (default ownership) of a property, if:
- They inhabit it openly and continuously for five years, and
- They paid the full amount of property taxes due the entire time.
A squatter is someone who occupies a property without permission, whether they pay taxes and live there for a long time or not. Most squatters today are instead seeking free rent, not adverse possession; they are taking advantage of tenant protection laws, not “squatter’s rights.”
If a person trespasses and resides in a home for 30 days, California’s Tenant Protection Act entitles them to an eviction. They need only tell a responding police officer that they’ve been there 30 days. They don’t need to produce a lease or prove their tenancy in any way. Police then advise the property owner that it is a civil matter and to take it up with the courts.
Property owners cannot use force or intimidation to remove a squatter, cut utilities, change the locks, block entry, remove a squatter’s possessions, or even enter the home at all. They can only call the police, which means they’ll need to file an eviction. Once an eviction is ordered, the squatter has a total of 35 to 65 days to vacate, including the grace period. The total turnaround time from filing to removal is about 6-12 months in California. This equates to tens of thousands of dollars in lost rent and attorney’s fees to the property owner.
The High Cost of Squatting
California’s tenant laws need to be updated to prevent this kind of abuse. Squatters can cost owners tens of thousands of dollars in rental loss, property damage, legal fees, fines, and more, much of which is not covered by regular property insurance:
- Rental Income Loss: In a widely publicized Los Angeles case, a man used AirBNB to rent out a luxury apartment connected to his home. He agreed to a 6-month stay. The occupant – who clearly knew the law – refused to leave or pay rent. It took about a year for her to finally vacate. Situations like these that involve a once-paying tenant can be infinitely more complex, legally cumbersome, and expensive for owners.
- Property Damage: Last year, a serial squatter in Bellevue, Washington caused an alleged $150,000 in damage to a property. In Nashville, three squatters broke into a man’s upscale home. While he scrambled to evict them, they reportedly caused $200,000 in damage. In this situation, the squatters were charged with a crime, but many squatters are not. This can make it difficult for owners to file an insurance claim.
- Fines and Lawsuits: If a squatter violates ordinances or HOA rules, the homeowner could be fined or even sued. Worse, if a squatter fails to secure a pool, puts up a fence on an easement, or digs a hole without city approval, the homeowner could face government penalties or even possession. The owner of a small Minneapolis apartment building was recently taken to court for 17 property violations due to squatters.
- Attorney Fees: The average attorney’s fees for a regular eviction in California is about $8,000, according to Good Life Property Management. But evicting squatters can cost far more, as they tend to intentionally drag the process out (the longer it takes, the longer they stay).
- Sale Proceeds: If a squatter enters a home that the owner plans to sell, the sale will be halted and the seller will have to pay taxes, insurance, HOA fees, and interest while trying to evict. The cost of repairs, junk removal, and legal fees will also reduce the seller’s net proceeds. If the market softens in the meantime or a buyer backs out, they could lose even more.
In addition to the financial toll of squatting, squatters can diminish the quality of life in a community and cause real harm. We’ve seen many examples of squatters’ negligent and even criminal behavior, including:
- Reckless Endangerment: Squatters have installed pools without enclosures, dug holes without regard for gas or power lines, built ramshackle treehouses, and more (or all of the above, like on “Meth Island” in Florida). About a month ago, squatters in Sacramento caused a fire that destroyed the home and damaged two neighboring homes.
- Violence: This March in New York, a woman was murdered by two squatters in her own property. In a Minneapolis apartment building, residents were afraid to leave their units and called police over 150 times due to the aggressive behavior of squatters.
- Reduced Property Values: Damage a squatter causes can reduce the value of the home they occupy, but the disruptions, crime, and mess some squatters bring can affect the whole community. This can make it harder for neighbors to sell their homes and may cause values to drop.
- Higher Rents: Since 2020, rents have increased 29% nationwide. In California, rents have gone up 40%. Factors besides squatting are also to blame, but states that protect squatters de-incentivize investment and development. This keeps apartments scarce, rents high, and conditions poor.
With squatting happening more frequently, property owners now have to account for it when setting rents, vetting tenants, and making investment decisions. This raises costs, subjects honest tenants to more scrutiny, and limits housing availability.
Taking Matters into Their Own Hands
Flash Shelton, known as the “Squatter Hunter,” offers services to people whose properties get taken over by squatters. He recently went viral on YouTube when he successfully (and legally) removed squatters from his mother’s home – he did it by becoming a squatter himself. Desperate homeowners are now paying tens of thousands of dollars for services like Flash’s because they’re bleeding money and the legal system has failed them.
When laws that are meant to protect vulnerable people cause this degree of chaos and harm, the law ought to change. Getting behind on rent is one thing, but breaking into a home, committing fraud, damaging property, and lying to the authorities is something else entirely. Homeowners shouldn’t have to call a “squatter hunter” when someone trespasses on their property.
Florida Law
Florida recently passed a law that allows the police to immediately remove squatters. It also imposes criminal penalties on trespassers who lie to the police, cause more than $1,000 in property damage, or try to sell or rent a property they do not own. The law goes into effect in July.
Gavin Newsom recently signed a bill into law which allows owners to get police assistance with trespassers after filing a no-trespass letter. This is a step in the right direction, but our current protections remain too broad, and police are still wary of arresting people who claim to be tenants. According to the Apartment Association of Greater LA, several lawmakers are working on new anti-squatter legislation to propose next year.
What Do You Think?
This is no doubt a contentious subject, and as a real estate professional it’s one I hear a lot about. But I’m curious to know what you think. Should our squatting laws be tightened? Has squatting affected you?
