Battling Squatters and Boosting Rental Safety with Norma Richards

The Problem...

• Squatters pose a significant threat to property owners, especially in states like California and Washington D.C., due to lenient laws that protect illegal occupants.
• Owners are still responsible for paying mortgages, property taxes, and insurance even when squatters are not paying rent, leading to huge financial strain.
• High costs of ownership in certain areas, like California, where property values are extremely high, and insurance can be exorbitant (e.g., $12,000/year for a condo's interior insurance), exacerbate the problem when combined with squatter issues.
• Natural disasters (earthquakes, hurricanes, fires) in places like California add to the financial burden and risk for property owners.
• Short-term rental guests can illegally overstay their welcome and become squatters, making it difficult and costly to remove them.
• Property owners, particularly those new to investing or managing properties in different states, may not be aware of specific state and local laws regarding squatters and tenant rights, leaving them vulnerable.
• Some property owners, especially short-term rental hosts, unknowingly take on unnecessary liabilities by providing services like food, alcohol, or transportation to guests, which are not covered by their insurance.

Why This Is An Issue For You

• Squatters can lead to years of lost income from your property, even forcing you to pay them to leave, which significantly impacts your profitability and cash flow.
• Legal battles to remove squatters are often lengthy, expensive, and stressful, requiring court involvement and lawyers.
• Your property could be at risk of damage or neglect by squatters, leading to costly repairs.
• Ignorance of state-specific laws and the tactics of "professional squatters" (who use social media to find vacant properties and know legal loopholes) leaves your investments unprotected.
• Taking on uninsured liabilities can result in massive out-of-pocket expenses if a guest gets sick, injured, or causes an accident due to your provided services (e.g., food allergies, alcohol-related incidents, car accidents).

The Solution and How To Solve The Problem...

• Research and understand state and local laws: Every state has different laws regarding squatters and tenants. It's crucial to know the specific protections and procedures in your investment locations (e.g., California, Washington D.C., Ohio, Michigan).
• Implement preventative measures for vacant properties:
• Place "No Trespassing" signs.
• Register your property with the police department under a "no trespassing clause" (if available, like in California's new law), allowing police to remove trespassers more quickly.
• Maintain the property's appearance (e.g., keep grass cut) and make it look occupied (e.g., a neighbor parking their car in the driveway).
• Be cautious with short-term rentals: Be aware that short-term renters can become squatters if they overstay their welcome (e.g., more than 30 days in California without a valid lease).
• Reduce liability in short-term rentals:
• Do not provide food or alcohol for guests, as these are significant liabilities if guests get sick or have an accident.
• Avoid providing transportation for guests (like airport pickups), as your property insurance won't cover accidents in that context. Prioritize being a good host within safe and insured boundaries.
• Utilize AI for research: Tools like ChatGPT's deep research feature can help you quickly gather information on squatter laws, prevention methods, and even identify communities where professional squatters share tactics. Always verify information with legal counsel.
• Continuously educate yourself: Property laws and best practices are always changing. Supplement foundational knowledge from books (like Norma Richards' "Short-Term Rental Secrets Revealed") with ongoing learning through podcasts and other resources.

Considering the complexities of property laws across different states, what's one specific law or protection you plan to research further for your own real estate investments?