Tennant Mistake Cause Squatter Nightmare

[Coty Dolan]

This is a real-life situation a client of mine is currently going through in Pacific Grove, CA.

He had a prior property management company, that was very out of touch, to say the least. Being unhappy with their performance as a PM company, he brought his business to a PM company much larger reach and much better technology.

Since the new PMs inherited many old tenants, that were clearly not screened correctly, they have had an ongoing problem with many of them. Even though many of the properties are in a very nice area.

Now to the story,

This week, A tenant of an SFR, currently 8 months into a year lease, notified the PMs that she had responded to a craigslist add to house a displaced transient during the COVID-19 Shelter in place.

Yes, you read the last part correctly, the tenant in direct violation invited in a transient stranger into her rented unit to stay with her. 

Well, as you can guess the situation went very south, the stranger turner out to be a "professional squatter", we know this because he spoke to the neighbors and bragged about the fact he just bounces from person to person taking advantage of the weak and nieve to gain squatter rights by them inviting him into their rented units. 

The tenant attempted to give notice leaving to San Francisco about 2 hours north, and leaving the house in possession of the squatter, even though she called the police there is nothing they can do because of the squatter rights. The tenant now remains liable for all damages and is who will be named in the eviction. 

Because of the asinine renter and squatter rights in California, it is illegal to bar the squatter from entering the property or to turn off utilities. The only way to get the squatter out is to evict the tenant, who is no longer there. 

However because of COVID-19, right now on CA, there are no eviction until 90 days after the Shelter in place Order is lifted. 

The Owner can still collect rent from the tenant, that no longer lives there, however additionally because of COVID-19 there is no way to collect rent right now. 

What a nightmare of a situation, huh?

[Ben Zimmerman]

Consult a lawyer.

While it's probable that the tenant could shut off utilities to the home, I doubt that you could legally recommend to the tenant to do this.  Of course the squatter could theoretically just have the utilities turned back on in their name and not pay the bill.  Most utility companies aren't shutting off utilities for non payment during this time.  

Until the home is cleared, the original tenant is still ultimately responsible for payments.  It may be a long shot but I would try to put the onus on the tenant to offer a cash for keys scenario to the squatter.  Let them know that this is their mistake and you are holding them accountable for letting this person in without your permission.  Let them know that if the eviction happens in their name it will effect their credit score, and their ability to even rent a place for several years, as well as whatever options are available to landlords to pursue past rent payments once covid 19 subsides.  So instead of taking an eviction, credit score plunge, and owe back rent for many months, it may be better for the tenant to offer cash for keys and simply end the madness.