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Jessica DiPonziano
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Squatters insurance, yay or nay?

Jessica DiPonziano
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Posted Feb 20 2024, 13:35

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

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Glen Wiley
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Glen Wiley
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Replied Feb 21 2024, 01:12

One way to handle this is to stay in the house while it is vacant, or pay a friend to house sit until you find a tenant.

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Jessica DiPonziano
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Jessica DiPonziano
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Replied Feb 21 2024, 06:30
Quote from @Glen Wiley:

One way to handle this is to stay in the house while it is vacant, or pay a friend to house sit until you find a tenant.

I'm talking of a situation more when you have a tenant living in the house and they stop paying the rent and won't leave.

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Bill Brandt#3 1031 Exchanges Contributor
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Bill Brandt#3 1031 Exchanges Contributor
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Replied Feb 21 2024, 09:58

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. 

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Jessica DiPonziano
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Jessica DiPonziano
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Replied Feb 21 2024, 10:09
Quote from @Bill Brandt:

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. 

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

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Bill Brandt#3 1031 Exchanges Contributor
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Bill Brandt#3 1031 Exchanges Contributor
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Replied Feb 21 2024, 11:03

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. 

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Glen Wiley
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Glen Wiley
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Replied Feb 22 2024, 01:37
Quote from @Jessica DiPonziano:
Quote from @Glen Wiley:

One way to handle this is to stay in the house while it is vacant, or pay a friend to house sit until you find a tenant.

I'm talking of a situation more when you have a tenant living in the house and they stop paying the rent and won't leave.


 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.

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Jessica DiPonziano
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Jessica DiPonziano
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Replied Feb 22 2024, 05:30
Quote from @Glen Wiley:
Quote from @Jessica DiPonziano:
Quote from @Glen Wiley:

One way to handle this is to stay in the house while it is vacant, or pay a friend to house sit until you find a tenant.

I'm talking of a situation more when you have a tenant living in the house and they stop paying the rent and won't leave.


 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.

How do you calculate that? I'm preparing a house that I bought as a primary residence but now moving out of it and want to rent it out

in Philly it can take so much longer than 2-4 months. My neighbors are trying to evict and they're on month 8. Since COVID Philly has made it difficult. 

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Bob Stevens
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Bob Stevens
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Replied Feb 22 2024, 05:41
Quote from @Jessica DiPonziano:

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


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

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Jessica DiPonziano
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Jessica DiPonziano
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Replied Feb 22 2024, 09:36
Quote from @Bob Stevens:
Quote from @Jessica DiPonziano:

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


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

Unfortunately Philadelphia makes it very difficult to evict, takes months if not a year for some people I've seen

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

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Bob Stevens
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Bob Stevens
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Replied Feb 22 2024, 10:05
Quote from @Jessica DiPonziano:
Quote from @Bob Stevens:
Quote from @Jessica DiPonziano:

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


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

Unfortunately Philadelphia makes it very difficult to evict, takes months if not a year for some people I've seen

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


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

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Glen Wiley
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Glen Wiley
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Replied Feb 23 2024, 03:27

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.