How do you deal with a tenant who is squatting?

Question

Hey guys,

I have a seller who is looking to sell her single-family home but has an old relative who has been squatting in the house for over 2 years. The relationship has gone south and I can't even get in to take pictures of the house (tenant refuses). The tenant claims that if she tries to evict him he will destroy the house. The seller is a reserved old lady and clearly does not have a grip on the situation. Any suggestions on how to deal with the situation? I know cash for keys is an option, I'm assuming I would look to put the property under contract and then go to the tenant and offer cash for keys? Any suggestions are greatly appreciated, thank you!

Will Barnard · Answer

I both agree and disagree with Lori. I fully agree that cash flor keys in situations like this is akin to paying off a terrorist however, this is a business and as such, it is not always possible or profitable (after all, we are in this business to make money, not lose it) to take the road of teaching the squatter a lesson. Often times, while I would hate it, giving them cash for keys is a necessary evil. It is not our job to provide the lesson to all these tenant/squatter terrorists but when possible, I am certainly able and willing to do so.

I have had one of the worst documented squatter cases here on BP that went on for 5 years - see the thread "Occupants from Hell". They would not take cash for keys and ended up working the system for 5 years before I finally got to watch the Sherriff's escort them out of my home (which I video recorded and documented here on BP). People like that belong in jail.

Jill F. · Answer

Evict. Make sure to carefully follow the eviction process for your state. In Ohio, we don't have to get permission to enter we only have to give notice for legitimate purposes like repairs or pictures or appraisals; check the laws for your state and if possible get inside and get pictures. You can't control what the tenant does you can only control what you do. Your owners insurance may cover willful criminal damages if the tenant follows through on her threats.

Jake Burhans · Answer

@Dan Heuschele @Will Barnard @Lori Williams All great points, I agree that if I do cash for keys I should wait until I have the keys in my hand and he is moving out to pay him. Appreciate all the advice guys, thank you!

Lori Williams · Answer

Cash for keys is the equivalent of paying a ransom to a terrorist. I would never do that.

I would absolutely evict and let the courts know they threatened to destroy the property. I would absolutely give them as much notice as I had to and no more and enter that property every single day to do some sort of maintenance because I'm sure it's not great inside, and I'd call the police if they did any damage or threatened me.

Unless you live in a state that holds landlords hostage, allowing a squatter to stay is just rewarding really bad behavior and only encourages more of it from other people.

Look at it this way, you're probably going to be rehabbing anyway right? So you just have to do a little more rehab, but get them out. Find out how much notice you have to give to enter, have her give that notice and then you can see the property without the tenants permission. You need to take this bull by the horns.

If you do decide to go the more passive route of cash for keys, they get no cash until you get the keys. If you give them half the cash there's no guarantee they're going to move especially when they have that kind of attitude. So here's two months rent, you get it the day you move out and the keys are in my hand. Meanwhile start the eviction process and if you get the eviction before you get the keys then he doesn't get the cash.

Darnell Duncan · Answer

You may not have rights to do much in this situation. The seller will definitely need to take action. It's unfortunate since it is a relative, but they'll need to either process an eviction or try to negotiate a cash-for-key situation as described earlier.

In my home state of Georgia, this process can be initiated even just with a verbal notice, but it's best to put it in writing. I would refer to the laws in your state for more specific information.

Jake Burhans · Answer

@Will Barnard Thanks Will!

Jake Burhans · Answer

@Jill F. Great thank you!

Jake Burhans · Answer

@Jaron Walling I agree, great advice in regards to the cash for keys. Thanks man!

Will Barnard · Answer

If the tenant is threating damage to the house in response to an eviction, then I would have seller contact police, additionally, the law provides for landlords to access their property with proper notice and refusal by the tenant is a violation of the law, the seler could have the police come to witness the access and eliminate any danger to the seller. Sounds like your seller needs an eviction attorney and to contact the police. From your perspective, you do not have a whole lot of rights so it is up to the seller at this point until after you take title.

How do you deal with a tenant who is squatting?

Most Popular Reply