Creative Ways to Get Rid of Squatters: What’s Legal & What’s Not

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“Squatters’ rights” are two words that evoke an emotional reaction in landlords everywhere. Getting rid of squatters can be challenging due to legal complexities surrounding property rights and eviction processes.

In many states, squatters may be granted certain legal protections over time, making it more difficult for property owners to evict a squatter without following proper legal procedures, which can be time-consuming and costly. Depending on the local laws, property owners may need to follow specific eviction processes, such as obtaining court orders, to lawfully regain possession of their property from squatters.

But that doesn’t mean squatters can act with absolute impunity. Property owners have rights to their property and can take legal action to remove squatters.

Here are five creative (and legal) ways for handling squatters that smart investors should know to avoid the stress and financial burden of lost rental income, property damage, expensive repairs, and a painfully long eviction process.

Squatting or Trespassing: What’s the Difference?

First, it’s important to understand the difference between squatting and trespassing. If the situation resembles squatting and other crimes aren’t occurring, the police will likely inform you that your dispute is a civil court issue. This is why calling the police to deal with squatters won’t always work to have a squatter legally removed.

Trespassing, on the other hand, is a crime. If you catch someone trying to break into or occupy a private property, particularly one with tenants, this is trespassing. Call the cops, and they’ll remove the intruder.

Squatting is often used to refer to unwanted tenants who have occupied a property to stay for the long term and/or gain legal title. Sometimes, holdover tenants who have not moved out or paid rent may also be considered squatters.

Squatter’s Rights: What to Know about Adverse Possession

Squatter’s rights, also known as adverse possession laws, vary across jurisdictions but generally provide legal rights for people who occupy and possess a property without the owner’s permission. These laws seek to balance property owners’ rights with those of long-term occupants.

Some property owners may find it difficult to remove squatters because they can legally claim adverse possession based on how long they’ve been an occupant. Squatters may also be able to gain legal ownership of the property after a certain period, typically ranging from several months to years.

Also, an eviction court hearing can be complex and lengthy. Property owners often have to follow strict legal processes, such as issuing a formal eviction notice, filing an eviction lawsuit, and getting a court order to evict a squatter. This can prolong the duration of evicting squatters and increase legal costs.

Finally, proving ownership and demonstrating that the occupant is a squatter can be challenging. Property owners may need to claim ownership by providing extensive documentation and evidence while also disproving any claims made by the squatter regarding their rights to the property. Some states prioritize protecting occupants’ rights, particularly if they have established a permanent residence on the property.

Property owners must understand the specific laws and regulations regarding squatter’s rights in their area. You may need legal advice to navigate the eviction lawsuit process effectively and protect your property interests.

Can Police Remove Squatters?

When squatters illegally occupy your property, you can have law enforcement remove them. If police remove squatters, they must follow the local and state laws to be able to do so.

While laws differ, police may intervene if they have reasonable grounds to believe that the occupants are trespassing or unlawfully occupying the property. Property owners must provide evidence of legal ownership, such as documentation of paying property taxes or utility bills to evict a squatter.

Generally, the police’s legal right to remove squatters is limited to maintaining peace and order during the eviction process, and property owners may still need to follow proper legal procedures, such as getting court orders, to regain possession of their property.

How to Not Handle Squatters

No matter what, you don’t want to break state and local laws by trying to rid your property of squatters without a formal eviction notice or going through the eviction process. As a property owner, it’s best to follow all applicable laws and contact the local authorities to remove squatters legally.

Here are some things you can’t do to force out unwanted tenants:

• Cut the electricity or utilities. It’s illegal, no matter how badly the offending occupants behave. If you have a vacant property sitting empty for a while, you’ll want to turn off utilities to help prevent squatters.
• Threaten or intimidate them. Also illegal and a great way to get yourself sued. It’s in most property owners’ best interest to avoid nonsensical litigation.
• Remove the squatter’s belongings. Most states require the property owner to serve written formal notice before removing a squatter’s possessions from the property. You may be allowed to post a written notice on vacant properties by a court if the squatters have left their belongings behind.

While all of these options may be extremely tempting to enact in a short period of time when you’re facing a long-term squatter situation, don’t make the problem worse for yourself. But it doesn’t mean you can’t get creative by trying these five legal methods that may also work.

5 Creative (and Legal) Ways to Get Rid of Squatters

Squatters are best handled proactively, like most other legal problems. It’s easier to prevent your vacant rental property from uninvited guests in the first place than to have them removed by the local police.

Hire a property management company if you can’t physically check on the vacant property. Of course, not every property owner is lucky enough to catch squatters ahead of time, even with a property manager.

If you discover squatters on your property, you can try to get rid of them by:

1. Call the police, and a real estate eviction attorney

Police can help you remove someone who is trespassing. But if you illegally force out a squatter, they may be able to file suit against you and possibly acquire legal ownership. Consult a legal resource and/or attorney to check your state and local laws about residential evictions when in doubt.

The local sheriff may tell you it’s a civil matter rather than a criminal one if other crimes aren’t occurring. If this is the case, you must seek a civil lawsuit remedy. But even if this happens, you’ll still have sworn witnesses and a documented official police report of what happened in your case.

Get your lawyer involved if you’re not feeling satisfied after calling local law enforcement. You’ll want your real estate attorney to know if the situation isn’t immediately resolved. Follow their advice exactly as given to avoid future legal hassles.

2. Use public pressure tactics

Another method is to put signs on your property and in the neighborhood to inform your neighbors of the squatter’s presence. If everyone in your area knows the squatter, they might feel pressured enough to vacate without legal proceedings.

Gather witness statements from neighbors and take videos and photographs of property damage. You can present this evidence in court to support your legal claim for removing squatters.

3. Arrange a formal rental agreement

If there’s a situation that doesn’t involve criminal activity and you want to consider offering the occupants tenancy (because, for example, they’ve taken care of the property or have regular employment), you can formalize your arrangement, decide how much to charge for rent, and offer them a rental agreement.

Then they’ll have full tenant rights, but you’ll have a legal way to end the tenant relationship if they don’t pay rent or violate your formal lease agreement.

4. Offer the squatter a cash incentive to leave

You may consider offering the squatter a cash incentive to leave your property instead of wasting time and money on a residential eviction hearing or an adverse possession case. It’s sometimes known as “cash for keys” and can create a win-win situation for the landlord and the squatter.

When you give the squatter part of the amount that otherwise would’ve been spent on court fees and repair costs, they get cash, and you get to rent the property to people who pay. However, if the squatter refuses, you’ll still have to file an unlawful detainer lawsuit and deal with the legal eviction process.

5. Sell your rental property with squatters in it

Depending on the state law in your market, you may be able to sell your property even if the squatters are still there. Some companies buy rental properties with residents still in them. You may be able to sell your property to a professional investor who’s willing to take on a difficult tenant or squatter situation.

This way, the new owner takes on the stress of handling the eviction process and repairs. Plus, many direct home buyers pay cash, cover closing costs, and don’t require inspections, so the squatter occupying the property doesn’t affect the selling process.

However, selling your property means you’ll give up your monthly cash flow potential, so analyze the deal before pulling the trigger.

Squatters Have Rights, But Not to Your Rental Property

Squatters, burdensome as they may be, are humans and deserve to be treated with dignity and respect even if they’re not legal tenants. Although many horror stories about squatters’ rights and adverse possession exist, it doesn’t make it the norm.

Proactive property management can prevent squatters from occupying your property without permission. Like any other problem, it’s easier to manage if you catch it early. You’ll find that maintaining a proactive approach to your property management is well worth the effort. The stress and frustration can be significant for property owners dealing with eviction proceedings because of a squatter.

To evict a squatter for good, you must understand the laws and regulations related to squatter’s rights in your state. Seek legal advice from a legal resource website and/or an attorney to guide you in protecting your property ownership rights in the best way possible.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.