Strong Tenant Laws & How to Protect Yourself

New to Real Estate · San Rafael, CA · Member since 2025 · 16 posts · 6 votes

Hello,

I want to buy a duplex in an area with strong tenant laws. Beyond carefully vetting the tenants, how can an investor protect themselves from squatters if we want to sell years down the road? Or replace a bad tenant say who is paying?

0 Reply

39 views

Most Popular Reply

Mike HurneyPro Member

Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes

@Paloma Wodehouse I started by going to Housing Court sessions and hearing the Cases and their "Dispensation of Justice". I ended up with some rules, couple here:

1.Discrimination - Never Rent to Attorneys, Law students or Law Professors.

Learn all you can about the Housing Laws i.e. Federal Laws Prohibit Discrimination of 7 Protected Classes, Massachusetts has added 8 more:-0

2.Always know more of the Rules/Laws/Regulations than ANY Tenant. But don't let them know it.

It amazes me how many of our members at MassRealEstate dot net have an Asset worth $300-500k Rent it for .5-1% of value and hardly pay attention to it, yet chase a tenth of a percent in CD rates;-)

2 Reply

See this reply in the discussion

10 Replies

Jump to latestLatest

Sort by

Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
1y
Bad tenants and squatters are wholly different situations. I think one of the biggest analysis paralysis thoughts is on landlord- or tenant-friendly areas. If you do a good job picking tenants, you will be fine. You want an area with a good rental pool and a good property to rent to them. If you have that, and do your due diligence, it's not going to matter.
You seem scared to be a landlord before you even start so it's likely not for you. Where did you get squatters from? Squatters break into vacant homes, can present fake leases, and are a valid problem, but if you have cameras on the house, you will be able to get them out right away and you will see them going in.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
0 Reply
Paloma WodehousePro Member
OP
New to Real Estate · San Rafael, CA · Member since 2025 · 16 posts · 6 votes
1y
I appreciate the response. I’m not scared. I’m wanting to be prepared and educated since I’m new to this and looking for advice. I’m very much excited about becoming a landlord. I’ve just heard horror stories from landlords and I’m looking for suggestions on how to best vet tenants - Good credit, no missed rental payments in last 5 years, etc. Perhaps it’s as simple as that.
Additionally, where do you research if an area has a good rental pool?
0 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
I'd start by talking to others who are landlords or property managers in your area. There are places that are tenant friendly and then there is California which is at another level completely.
Have you thought about buying elsewhere? You might be able to find something in a neighbouring state to the east which is within driving distance.
0 Reply
Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
1y
The #1 reason that landlords fail is due to failure to manage to the lease (Source: American Apartment Owners' Assn). Start here...have a solid lease with an Addendum of dealbreakers/rules that are written in plain everyday language. Next, plan on inspecting your properties every 90 days; you can communicate this to the tenant as you ensuring the property is in good order and to help you plan for repairs/future improvements. Give the appropriate notice.
Want to avoid squatters? We all do. Those properties that are obviously vacant - as well as those you advertise for 'immediate occupancy' are well-known targets of squatters. Install cameras and exterior lighting on timers, place no trespassing signs, and place items that indicate occupancy - like a BIG dog bowl near the front door, shoes, etc. I also recommend not allowing unaccompanied showings if at all possible.
Screening is important. Knowing your state laws - critical. Operating your rental like a business is mandatory to protect you, your ROI, and your property.
Hope this helps...
1 Reply
Paloma WodehousePro Member
OP
New to Real Estate · San Rafael, CA · Member since 2025 · 16 posts · 6 votes
1y
That’s all very helpful and thank you for the tips.
0 Reply
Mike HurneyPro Member
Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
1y

@Paloma Wodehouse I started by going to Housing Court sessions and hearing the Cases and their "Dispensation of Justice". I ended up with some rules, couple here:

1.Discrimination - Never Rent to Attorneys, Law students or Law Professors.
Learn all you can about the Housing Laws i.e. Federal Laws Prohibit Discrimination of 7 Protected Classes, Massachusetts has added 8 more:-0
2.Always know more of the Rules/Laws/Regulations than ANY Tenant. But don't let them know it.
It amazes me how many of our members at MassRealEstate dot net have an Asset worth $300-500k Rent it for .5-1% of value and hardly pay attention to it, yet chase a tenth of a percent in CD rates;-)
2 Reply
Brett MerrillBusiness Member
Rental Property Investor · Ludlow, MA · Member since 2016 · 114 posts · 48 votes
1y
Very helpful. Thank you.
0 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Paloma Wodehouse:

You only mention two problems. There are dozens of problems you can face as a landlord, and I feel it's important to have a plan for all of them. Too many landlords bee-bop along thinking real estate investing is easy . . . then they get hit with a problem (or 20) and their world is turned upside-down because they don't know what to do.
Read my book. There are a couple more in the BP bookstore. Check out Every Landlord's Legal Guide by NOLO. These resources will teach you how to handle the various tenant problems you are guaranteed to face if you invest in real estate.

The DIY Landlord Book4.7248 Reviews
Website View Page
1 Reply
Scott AllenBusiness Member
Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
1y
@Paloma Wodehouse I have heard that California is not the most landlord friendly state. Look into states that are more landlord friendly.
Squatters - you have to stay on top of your properties when they're vacant/don't let them be vacant too long, call the cops if people are in a unit that shouldn't be there if it's supposed to be vacant, bring a pack of vicious German Shepherds or pitbulls with you to get them out. The squatters are usually more scared/run when they realize an owner or manager comes by a vacant property.
To get rid of a tenant - that you don't want to renew their lease on, always pays late, or always has complaints or maintenance request - give them a 30-60 notice (You can let them know you're the manager and the owner wants to have the unit renovated).
[email protected]614-698-1227
Reafco - Columbus, OH
Website View Page
0 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
1y
If you're thinking about being a landlord in California, squatting is the least of your worries. Your big worry is California anti landlord laws. Listen to what Gesner and Steiner are telling you. Then read it again! You don't have the experience to even know what they're talking about, but you'll learn the hard way if you don't learn. Find some big-time landlords that are willing to share their leases with you. Act like you're interested in a corporate apt and get some lease copies. In California, there's a reason they are 100 pages long, its necessary. Join a landlord association and download their lease which will be very basic, then add the other 50 pages with help of a good attorney, so that if your tenant messes with you, you have them by the "you know whats". And you still might be screwed. Try Arizona instead. That's a good place for novices. You're jumping in a shark tank and you can't even swim. Be very afraid. Good luck.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.