by REALLO Team 
What is a Squatter?
Squatter is a term that recently has been on the rise across the real estate industry. It’s the unpleasant situation when an individual claims possession of another’s property without permission. Squatters are individuals who thoroughly understand various legal defects, thereby exploiting such legislation.
According to Investopedia, a squatter is an individual “who settles in or occupies a piece of property with no legal claim to the property.” They live on a property without holding title, rights, or a lease. Moreover, a squatter can attain adverse possession of a property by making a claim to the land, taking possession of land, and using land through involuntary means.
Squatter Rights in The U.S.
Every U.S. state abides by its own regulations regarding squatter rights and adverse possession. In Virginia, for instance, a squatter may claim adverse possession after continuously occupying a property for at least 15 years.
Texas offers a more nuanced approach, where the requirements for a squatter to claim adverse possession range from three to ten years, depending on whether they have color of title or have improved the land. Unlike Virginia, paying property taxes is a condition under certain scenarios.
In California, squatting is illegal. If someone is found occupying a property without the owner’s consent, they are trespassing. However, squatters can still assert rights under adverse possession if they meet certain criteria over a five-year period. This includes paying property taxes.
New York, however, presents a unique scenario for property owners—especially in New York City (NYC). Squatters can claim rights after occupying a property for 30 days within the five boroughs of NYC. For the rest of New York, the occupation period extends to ten years. Said occupants must meet the requirement of paying property taxes and having color of title.
Apartment Squatters
Squatting in multifamily properties presents unique challenges. The term “squatter” takes on new meanings in this context. For instance, residents who refuse to leave after their lease expires can become squatters. Similarly, someone who gains access to an apartment through fraudulent means, like identity theft, might also be considered a squatter.
This squatting issue is further complicated by the ease of access afforded by modern technologies and resident protections. As an example, automatic tour booking systems can create a pool of potential risks. Additionally, unrestricted access to amenities like laundry rooms and staircases might be exploited by squatters who attempt to establish residency through adverse possession laws.
Squatter challenges have become a growing concern in multifamily. The global pandemic has unfortunately worsened the situation by causing court backlogs, making eviction of unauthorized occupants a lengthy and difficult process. This not only disrupts rental income but also leads to property damage and significant legal fees. Fortunately, proactive measures can reduce the risk of squatters taking root in the first place.
Strategies to Limit Apartment Squatters
As a start, regular inspections of vacant units are critical for early detection. Securing entry points and implementing security systems, like alarms or doorbell cameras act as strong deterrents. Furthermore, property owners and managers can consider building rapport with local law enforcement and residents. This helps foster a watchful community to report suspicious squatter activity. It may also benefit owners to post visible “no trespassing” signage throughout the property to reinforce the message—just remember that squatting is often a civil matter, so immediate police intervention might not be available.
If a squatter situation arises, it is recommended to promptly begin the eviction process. In many states, this process commences with a formal notice to vacate. Property management companies can help lessen the burden, not only by overseeing the eviction process but also for implementing resident verification policies.
Conclusion
It is important to stay informed about state-specific squatter rights and adverse possession laws. Devising a comprehensive strategy that blends legal knowledge, preventative measures, and skilled property management is generally the most effective way to combat squatting. Moreover, by advocating to reform squatter laws and employing effective security and management practices, multifamily owners can continue to safeguard their investments from the complexities associated with squatters.
After all, in real estate, prevention is the best defense.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Squatter rights and adverse possession laws vary widely across different states. Readers facing property management issues or seeking to understand their legal rights should consult a licensed attorney specializing in real estate law for advice tailored to their specific situation.
About Reallo.ai:
At Reallo.ai, our mission is to bridge the gap between affordable living and applicable multifamily technologies. We offer a platform specifically designed for low-cost apartment housing. Our commitment is to assist one million families in finding affordable living spaces by 2025, ensuring that every American has access to the housing they deserve.
