The Rise of Squatter Scams - What Landlords Need to Know

Landlords, beware: Squatter scams are on the rise again.

Back in 2021, Detroit saw a wave of these scams that saw landlords dealing with hosts of unwanted residents staying in their vacant rental properties. And now, it seems that these squatter hordes are rearing their rent-free heads again.

So let’s break down the latest trends and see how landlords can stay ahead of the curve.

Squatters Making Headlines in Detroit

One recent news report shows that squatter scams have been becoming increasingly common in Chicago.

A large percentage of these scams involve fake landlords, who create illegal leases for properties they don’t own, then rent them out to unsuspecting tenants. But the housing crisis is also driving more people to squat in vacant properties without a lease, too.

Just last month in Detroit, Fox News did a viral segment called “Squatting on the Squatter” which had a reporter show up at a house where one squatter had been residing for nearly a decade. The reporter said that he was going to squat there now, too - much to the surprise of the original squatter.

In the end, the police showed up and removed the illegal resident (who, as it turns out, was also in violation of parole).

But what this shows is how the problem of squatters is becoming increasingly pronounced around the country. So, what can landlords do about it?

How Landlords Can Handle Squatters in Detroit

In Detroit, if you find a squatter in your rental property, your best bet is to call your local police station’s Precinct Commander and tell them you have a trespasser whom you want removed from your property. (DON’T mention anything about squatters.)

You’ll have to prove you’re the owner of the property, so have the appropriate documentation with you, and arrange for a locksmith to meet you at the unit.

When the police arrive, they’ll ask the squatter to prove their identity and provide either a deed or lease agreement for the property. This is when you change the locks, and if they try to re-enter the property, you can have them arrested for attempted B&E.

Note, there’s about a 50/50 chance that, when you call, the police will tell you it’s a civil matter and make you go through the courts system to resolve it. It’s really just luck of the draw here, but it is faster and easier to try this method first.

Protect Your Rental Units from Trespassers

If you can prevent squatters from getting into your units in the first place, that’s obviously way better than having to remove them down the road.

So we recommend installing security cameras both outside and INSIDE vacant rental properties, which you can monitor live from your phone or computer. That way, the moment a trespasser enters, you can report it to authorities and get them to arrest the squatters ASAP.

Have you dealt with squatters before? What is the fastest method for regaining possession of your rental, in your experience? Share your tips in the comments!