How to evict a squatter?

[Jonathan Johnson]

Hello BP,

I'm looking into buying an apartment complex from an elderly fellow. He has a "friend of the family" currently as the only "tenant" in his 6-unit apartment. He told me she has not paid rent in over 15 years, and he's even paid her utilities for a while. He describes her as not all there, and she has a lot of cats. 

I read the How to evict a tenant guide, but it doesn't say anything about someone just squatting with no lease or rent.

She is probably really comfy there with a lot of stuff. I'm going to offer her to sign a lease once renovations are done, but I'm 94% sure she won't go for it. 

How should I approach this? Treat her just like a tenant and start the eviction process? Any bumps you could foresee that I should be aware of?

Side questions: 

How do you get intense cat smell out? 
Can you write up a no-cats policy when the last owner didn't have it?

[Travis Beehler]

Offer her a lease, if not, I'd start the eviction process.  15 years rent free is absolutely on them, but do everything by the book for her.

[Gerardo Dominguez]

@Jonathan Johnson  Every city is different so you should check w/ a lawyer.  Or just look up your city's tenant laws online.  The most painless way is probably to just offer cash for keys.  As far as getting the smell out, I've heard great things about  "ozone" cleaning.  That seems to be very effective but I haven't had to use it yet.  You can absolutely write a no cat's policy.  If she hasn't paid rent in 15 years, I'm assuming she's not on a lease.  Just add it to a new lease and tell her if she doesn't sign she's gotta go!  Good luck :)

[Robert Melcher]

Beware that some states have laws that allow a person who has used property/land blatantly without hiding the fact for "X" amount of time to claim ownership/an ownership interest in the property.

The previous owner may have set you up to fail and given you a 15% ownership partner in your multi!

Talk to an attorney familiar with homestead and property rights in your state.

[Jonathan Johnson]

@Travis Beehler 

That's what I was expecting.

@Gerardo Dominguez

Have you ever done cash for keys? Is the idea that she move herself out with all her stuff and trade in the keys for like $100 or so?

@Robert Melcher

I remember hearing about this! Ah, that's scary. I don't even know where to start researching this. That would be terrible. Any way to prevent this?

[Jonathan Johnson]

Just found this, I don't think she qualifies for "squatters rights" or adverse possession.

[Marcia Maynard]

An occupant may be considered a tenant by law if they meet certain criteria. Act in accordance with landlord-tenant law for your jurisdiction.

After becoming the legal owner of the property, I would talk to the occupant and let her know things are going to change. Make sure she understands that continuing to live there is not an option unless she is prepared to pay rent and abide by the terms of your rental agreement.

Offer her a chance to qualify to remain or negotiate a move-out plan. This might include offering cash for keys and providing moving boxes/bags. Give her ample time to move, such as 60 days. Serve a legal notice to vacate as well, so you won't lose any time. Sometimes tenants agree to move and then dig in their heels.

If the tenant won't budge, then proceed with eviction. It may be best to engage the services of a qualified attorney who specializes in landlord-tenant law.

De-catting a property can be difficult, but is possible. Search BP for information on "cat odor". It is not as simple as you might think. Cat urine can be pervasive. Flooring, baseboards and sheet-rock may need to be replaced. At a minimum, it will require thorough cleaning and then odor removal and odor blocking.

[Rick H.]

1) Take the deal off the market by getting it under contract.

2) Delegate to a local attorney who will be sensitive to the situation and knows the judges

3) Offer softball plan to transition. You'll originally never get her to pay sinceafter 15 years she'll feel entitled, attached and possessive. 

4) The non- paying interloper will prevent you from generating rents from the other 84% of opportunity to this deal (100% less her unrest able unit). 

5) The most powerful force is people's resistance to change. 

6) Code enforcement must become your friends!

[Gerardo Dominguez]

@Jonathan Johnson  I haven't had to do it yet (knock on wood) but if I ever get into that unfortunate position I absolutely would.  The tenant laws in my city (Chicago) heavily favor the tenant.  For example, I can evict a tenant, regardless of circumstances, during the winter months.  From what I've heard by talking to my property manager and other local investors I would expect to pay $500-$1000 in the cash for keys scenario.  Which sucks, obviously, but it pales in comparison to the costs of having to go through a formal eviction process.