Are squatters a common problem for rental property investors?

[Randy Vincent]

Hi Everyone,

My wife and I are looking to buy our first MFH in the Cleveland area, and I’m interested in knowing if anyone has had to deal with squatters on their properties. I’m wondering how common of a problem squatting is in the Cleveland area, and what strategies can be used to minimize the chances of it happening. Perhaps the problem has been blown out of proportion by the media, but we would just like to ensure that it doesn’t happen to us.

Thanks!

[Nathan Gesner]

Quote from @Randy Vincent:

It depends on the market. I live in a market where half the occupants don't lock their doors at night. Cleveland, like most big cities, has a large number of squatters. It's important to educate yourself on how to prevent it from happening, and then being prepared to act quickly and decisively if it does happen.

The problem is pervasive enough in Cleveland that a Google search turned up a lot of news articles, helpful blogs, and other resources.

[Andrew Weiner]

As a local manager we don't come across true squatters very often.  The more common issue is someone who is related to the property staying over and having to go through an eviction.  On the handful of times we have found someone in a unit we have threated to call the police and it has generally worked, they would need to show something that ties them to the unit (mail, utility bill, or lease) for the police to not get involved.  

In the event that you do have a true squatter its a fairly standard eviction process which is unfortunate but does happen in this business.

On a preventative note if you have a vacant unit you can put in a security system that uses cellular and you will get notification if anyone comes in.  If you get the police immediately then it should be easy to get them out as trespassing or breaking and entering.  

[Verna Littleton]

Check on the property often and install cameras if you think it will be a problem.  Just dont leave the property sitting empty for a long period of time.  If they see no activity at the property, then yes they may squat there  

[Randy Vincent]

Quote from @Andrew Weiner:

As a local manager we don't come across true squatters very often.  The more common issue is someone who is related to the property staying over and having to go through an eviction.  On the handful of times we have found someone in a unit we have threated to call the police and it has generally worked, they would need to show something that ties them to the unit (mail, utility bill, or lease) for the police to not get involved.  

In the event that you do have a true squatter its a fairly standard eviction process which is unfortunate but does happen in this business.

On a preventative note if you have a vacant unit you can put in a security system that uses cellular and you will get notification if anyone comes in.  If you get the police immediately then it should be easy to get them out as trespassing or breaking and entering.  

Thanks very much Andrew. What is the most common example of "someone who is related to the property staying over" ?

[Randy Vincent]

Quote from @Verna Littleton:

Check on the property often and install cameras if you think it will be a problem.  Just dont leave the property sitting empty for a long period of time.  If they see no activity at the property, then yes they may squat there  

Thank you Verna. Makes sense that the less the property sits vacant, the better. And, I will definitely consider the use of a security camera.

[Randy Vincent]

Quote from @Nathan Gesner:

Quote from @Randy Vincent:

It depends on the market. I live in a market where half the occupants don't lock their doors at night. Cleveland, like most big cities, has a large number of squatters. It's important to educate yourself on how to prevent it from happening, and then being prepared to act quickly and decisively if it does happen.

The problem is pervasive enough in Cleveland that a Google search turned up a lot of news articles, helpful blogs, and other resources.

Great advice, thank you Nathan.

[Andrew Weiner]

Quote from @Randy Vincent:

Quote from @Andrew Weiner:

As a local manager we don't come across true squatters very often.  The more common issue is someone who is related to the property staying over and having to go through an eviction.  On the handful of times we have found someone in a unit we have threated to call the police and it has generally worked, they would need to show something that ties them to the unit (mail, utility bill, or lease) for the police to not get involved.  

In the event that you do have a true squatter its a fairly standard eviction process which is unfortunate but does happen in this business.

On a preventative note if you have a vacant unit you can put in a security system that uses cellular and you will get notification if anyone comes in.  If you get the police immediately then it should be easy to get them out as trespassing or breaking and entering.  

Thanks very much Andrew. What is the most common example of "someone who is related to the property staying over" ?

This isn't common but we have had the following happen: former tenants, boyfriends/girlfriends staying after the lease holder left, family/friends of a neighbor in a multifamily situation, former owner or owners family after a foreclosure.  Like @Verna Littleton said, if you put in cameras and don't leave it sitting you won't have a problem.  

[Sam Yin]

@Randy Vincent

Random squatters are much more rare than local transients or neighbors. I have had to deal with only a few over the last 3 years. They were mainly for long term vacancies, with exception of one.

The first time was 2012 when I dabbled at buying a rental. I closed on a nice house in a B to B+ neighborhood in Ontario, CA. I got the keys from the agent and went to the house to walk it. There was a guy locked in the garage. After a brief engagement, he ran off with his skateboard and never came around again. He was 20-something, likely from the neighborhood. It could have been deadly, but I never broke snap/leather. I stopped carrying 99% of the time after that because I had been out of the army a dozen years already and it too close for comfort.

Next was 2021, when I decided to take REI seriously. Upon closing escrow on a small apartment, I removed 2 transients from an ajointing lot, because they were encamped against the back wall of my parking garages. This was a C- neighborhood. I gave him and his buddy 30 minutes to clear out. One moved slowly than the other. 60 minutes later, I took all items that was left around and trashed it. It was A LOT. The next night, while at the property to let the tenants know I was the new owner, I noticed he was in the community laundry and with his phone plugged, a bottle of piss on the floor, and looked like he was going to sleep in there. I confronted him and he stated I owe him for throwing away his family possessions. I disagreed. Long story short, I put my binder down, told my wife to hold my phone and stand back. Business was settled inside the laundry room and he was removed off the property. The next night, the door to the laundry room was kicked in and no one would admit to witnessing anything. I drove around the neighborhood and found the corner where my new transient friends had relocated/encamped. After a brief engagement, they understood never to come around that building again.

I yanked a few others out, with less physical force, but I knew the risks. I have towed many cars off my properties and had to keep tow drivers safe while they do their service.

There has been a nice lull for a bit. But this past 12 months, I had 3 incidents at the same house, because it was vacant for many months awaiting repairs and inspections. I do not deal directly with it much anymore and I have a local employee that takes care of they business. He tossed out a strung out 20 year old blond that was in the shower on the last occasion. Problem solved.

Moral of the story, regardless of neighborhoods, empty homes draw attention and there are a lot of people looking for shelter. As you grow, it will happen and you just need to deal with it and move forward. Some LL may never know the work it takes by PMs to keep properties from squatters.

I feel I got lucky because it happened to me starting out and I figured that's normal. After being on this forum, I'm willing to bet it's not and many on here would not be able to quickly/efficiency clear out or not let it impact their future REI efforts.

[Bob Stevens]

Quote from @Randy Vincent:

Hi Everyone,

My wife and I are looking to buy our first MFH in the Cleveland area, and I’m interested in knowing if anyone has had to deal with squatters on their properties. I’m wondering how common of a problem squatting is in the Cleveland area, and what strategies can be used to minimize the chances of it happening. Perhaps the problem has been blown out of proportion by the media, but we would just like to ensure that it doesn’t happen to us.

Thanks!

 I have done 100s and 100s , maybe I had 2 squatters over 10 years, SO no not a problem, 

[Randy Vincent]

Quote from @Bob Stevens:

Quote from @Randy Vincent:

Hi Everyone,

My wife and I are looking to buy our first MFH in the Cleveland area, and I’m interested in knowing if anyone has had to deal with squatters on their properties. I’m wondering how common of a problem squatting is in the Cleveland area, and what strategies can be used to minimize the chances of it happening. Perhaps the problem has been blown out of proportion by the media, but we would just like to ensure that it doesn’t happen to us.

Thanks!

 I have done 100s and 100s , maybe I had 2 squatters over 10 years, SO no not a problem, 

Good to know, thanks Bob!

[David Leggett]

Hey Randy, that sounds awesome you're looking to purchase some properties in the Cleveland market!  I wouldn't worry about squatters, it definitely happens, but I don't think Cleveland is uniquely worse than other larger cities, and there's a lot of steps you can take to help prevent this problem if you have a vacant property or something that's getting worked on or you're waiting to rent out.  

[Randy Vincent]

Quote from @David Leggett:

Hey Randy, that sounds awesome you're looking to purchase some properties in the Cleveland market!  I wouldn't worry about squatters, it definitely happens, but I don't think Cleveland is uniquely worse than other larger cities, and there's a lot of steps you can take to help prevent this problem if you have a vacant property or something that's getting worked on or you're waiting to rent out.  

Thanks David! It does seem like it's largely an avoidable issue with some simple precautions.

[James Wise]

Quote from @Randy Vincent:

Hi Everyone,

My wife and I are looking to buy our first MFH in the Cleveland area, and I’m interested in knowing if anyone has had to deal with squatters on their properties. I’m wondering how common of a problem squatting is in the Cleveland area, and what strategies can be used to minimize the chances of it happening. Perhaps the problem has been blown out of proportion by the media, but we would just like to ensure that it doesn’t happen to us.

Thanks!

 Yup, deal with them all the time. Best way to avoid them is to stay out of the ghetto.