Squatters have found a new type of home to take over, and it’s been just as difficult to kick them out of short-term rentals as conventional residential properties. While it’s not illegal to remove a squatter from a short-term rental property, waiting too long could result in a protracted and expensive fight over ownership.
The act of “squatting,” or adverse possession, which entails moving into a dwelling without any legal claim or title to that property, has become a national issue. However, only in the past year have there been cases of squatters targeting Airbnb properties.
Recent highly publicized cases in Nebraska, California, and North Carolina have put the short-term squatting issue in the national spotlight.
The rise of short-term rental squatting has led Airbnb to post a webpage on its corporate site titled “Things to consider before hosting monthly stays.”
On the page, the company stated: “These situations [in which guests refuse to leave] are incredibly rare, but if they happen, we‘ll work with you to try and help resolve the problem with your guest. Should you face such a situation, let our 24/7 support team know as soon as possible and we’ll get in touch with you.”
But state and county laws differ, and recent stories show homeowners who end up spending months or even years trying to evict one-time guests and seek recourse for damaged properties.
Flash Shelton, who operates a business called “Squatter Hunters,” is hired routinely to deal with squatter situations across the country and told The Epoch Times that he believes that Airbnb has a responsibility to be more involved.
“You’re putting your trust into a company that isn’t doing their due diligence in booking these homes. If an Uber driver gets in an accident, they’re responsible. Airbnb should be held accountable as well, and there should be something in place where if something goes wrong, they can share the blame,” he said. “I don’t think the homeowners get enough information about who they’re renting to. As a matter of fact, Airbnb isn’t even asking for it.”
Because of the rise in recent years of short-term rental squatters, several insurance companies have even developed squatter insurance plans. Darren Pettyjohn, co-founder of Proper Insurance in Bozeman, Montana, is among them.
“We went to Lloyds and kept the policies simple for them. If they have squatters and need to hire an attorney, our policy pays the first $10,000. We also pay $20,000 for lost business revenue if people stop paying their rent,” he told The Epoch Times.
Asked whether he’s had people use the policy, Mr. Pettyjohn said, “Yes, we’ve had some claims.”
Proper’s $10,000 lawyer fees are also available for court costs and sheriff fees with no deductible, protecting the hosts’ ability to continue making mortgage or other home payments during disruptive squatter disputes.
Mr. Shelton’s Squatter Hunters business, which he says will soon be a television show, has also begun taking on Airbnb cases.
He said he believes that the short-term rental squatters are increasing because of word of mouth and publicity. But he noted that, at the end of the day, short-term property renters make two huge mistakes that put their property in the squatters’ crosshairs. One is that they’re erroneously agreeing to extra days in the properties, which “should only be handled through Airbnb’s rental system”; the other is that people are letting their hearts get in the way of good business sense.
“I think people in general are trusting and we want to believe the sob stories and feel bad and want to help someone if we can. Unfortunately, in many cases, what we think we’re doing that’s good is coming back to bite us,” Mr. Shelton said. “These people [squatters] are conniving and calculating and pulling on the heartstrings of others.”
