As a property owner, effectively managing your rental property is crucial to safeguarding your valuable asset. One significant risk that can pose a threat to your investment is the presence of squatters. Avoiding the mistake of permitting squatters at your rental property is highlighted as Landlord Mistake #4. It’s imperative to stay proactive in managing your rental property to mitigate potential risks and protect your investment.
Managing Your Rental Property:
A squatter is a person who occupies a piece of land without the legal right or payment of rent. In other words, they live somewhere without the property owner’s permission. As a landlord, there are two types of squatters you should be aware of.
The first type is an unapproved occupant. Typically, a guest staying for more than two weeks is considered a tenant. As a landlord, you have the right to screen, approve, and enter into a legal agreement with the tenants of your property. Your current tenant’s lease does not cover long-term occupants. Allowing guests to “squat” on your property without your consent exposes you to risk.
The second type is an unapproved vacation rental business. With the rise of vacation rental sites like Airbnb and Vrbo, your tenant may be tempted to rent your property to vacationers for short periods of time. Your lease should explicitly state your position on this subject. Using your property as a short-term rental can impact your insurance and legal liabilities.
Ultimately, you should have control over who lives in your property and benefit from any funds collected for its use. Don’t allow squatters.
By avoiding this mistake, you can protect your investment and ensure that your property is occupied by authorized tenants. Stay tuned for the fifth mistake in our series. If you’re struggling with managing your investment property or have any questions, our team at Found Spaces Property Management Inc is here to help.
