Squatters insurance, yay or nay?

Question

I searched for squatters insurance the other day to see if it was a thing, has anyone gotten it before? Any have to use it and has an experience to share?

I'm witnessing my neighbor go through hell and paying for squatters living in their house and losing money instead of making for 7 months while trying to get these people evicted. I would like to protect myself from that when I put my house up for rent in 2 months just in case this happens I'm not hemorrhaging money while trying to get them evicted

Glen Wiley · Answer

Most of the time when I have heard that someone took a super long time to evict, they are making a lot of mistakes in how they approach it. I am not familiar with PA law on this, but you should become familiar and execute as rapidly as the law will allow. The biggest pitfall is when a landlord tries to be "nice" - non-paying tenants are literally stealing from you, treat them like the criminals that they are.

To calculate reserves for vacancy costs We average about 2-3% vacancy across our portfolio, I use 5% as the number for reserves. This translates to 2-4 weeks of unpaid rent per house per year in our reserve fund on top of maintenance reserves.

Glen Wiley · Answer

In that case you evict them. I have evicted people as recently as last fall. Start to finish it takes 2-4 months in Virginia. I include non-paying tenants as part of the vacancy risk included in calculations I make prior to purchasing a rental to ensure it will cash flow.

Bill B. · Answer

https://rentalincomepodcast.com/rentals-are-the-ultimate-get...

https://www.theguarantors.com/enroll-property?utm_source=The...

Luckily I haven’t needed anything like this. I don’t use them so I don’t know how good they are. And I’m sure there are competitors.

Account Closed · Answer

I never heard of such an insurance? So do they pay the entire price of the house if you lose it to adverse possession?

Please I really need some helps with my squatter problem, which I just posted on my 1st and only forum. Thank you for any help or advice.

Bob S. · Answer

Umm if they are spoken to the right was they will leave,

Jessica DiPonziano · Answer

I saw it on this page at the bottom and was curious if it was a thing https://www.proper.insure/

Bob S. · Answer

Never heard of squatters ins. When I get those losers I typically get them out in a day,

Jessica DiPonziano · Answer

Do you happen to have a link to the episode of “the guarantors”. I have no idea what it is. So you would make all tenants get this essentially or you can get it for them?

Sadly, my neighbor said the non-paying tenants are purposely breaking things in the house to cause violations and prolong the eviction process

Bill B. · Answer

A non-paying tenant is not a squatter. They have rights that squatters don’t. There is rental income insurance but I believe that’s usually for when the property becomes uninhabitable.

If you listen to the rental income podcast with Dan lane he talks about “the guarantors”. They and their competitors guarantee the security deposit and the rent for a monthly fee. You simply charge that fee on top of the rent and the tenants don’t  need to come up with a security deposit and your rent is guaranteed.

Squatters insurance, yay or nay?

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