Bought a home with a squatter in it. What to do?

[Matt Tobler]

A few days ago I purchased a rental property in Minnesota. The old owner was giving her uncle a place to stay so he has been living there. They never set up a lease agreement or anything. Long story short, I showed up today to check out the house and the uncle comes running out telling me I cant be there and that he has renters rights. He is now refusing to move out and said he plans on staying for the next six months or so.

Is there anything I can do? Does he actually have renters rights considering he was never on a lease and I now own the house?

I bought the house to Brrr and now I'm stuck. Any advice would be appreciated. Thank you  

[Greg M.]

A few things to consider. Check with your attorney first, but...

Contact the prior owner. Let them know that their intentional actions and intentional misrepresentation is causing you a loss. Therefore, you will be filing suit against them to recover all your costs. The longer the uncle lives there, the more expenses/losses you have and the more you will be suing for. Let him know that win or lose, it's going to cost him tens of thousands in legal fees to fight it. At this point he may just call up his uncle and tell him to get out. 

This guy was living with the prior owner. Therefore, he does not occupy the entire unit. He has a room. Nothing prevents you from being there to occupy the rest of the house. Nothing prevents you from moving in other renters into the other bedrooms. Have any friends that play the drums in a metal band or belong to a biker gang? They may need a room to stay. 

Nothing prevents you from remodeling the rest of the house while he is living there.

He has no lease, so create one for him - at 150% the normal rent. Just because his relative let him live there for free doesn't mean it continues forever. Let him know that you will be going after him for all the unpaid rent. Wage garnishment, bank levies, collection agencies, etc.