You Don’t know Squat

Gordon Ramsey’s London pub might not have much in common with the multifamily industry apart from one growing issue: it’s been overrun with squatters. Recently, his London pub was taken over by a group of professional squatters, who boarded up the windows and locked the doors. These freeloaders are threatening legal action against anyone who tries to kick them out. This scenario might seem outlandish and extreme but it’s becoming more common than you think for rental housing providers.

What is squatting? Attorney Gary Mauney defines squatting as when someone takes up residence in an abandoned building or unoccupied area. In a post-pandemic world, more potential residents are opting for self-guided apartment tours. No-contact key tours are available at numerous properties and provide less work for Property Managers, who already have a high workload. However, people are finding ways to hack the system and occupy a vacant apartment, also known as squatting. Another strategy squatter’s use is making copies of the keys before turning them in at the end of their lease. Chad Floyd, a Charlotte realtor at Keller Williams, said, “It became a cat and mouse game. We change the locks, they break in through the windows. We lock the windows, they break the windows." While squatters might think their tactics and motivation are in support of housing affordability, it’s doing the opposite. Any unnecessary financial burden on rental property owners negatively affects their bottom line. Trying to get a non-rent paying resident out of their property forces them to increase rent for the rent paying residents not to mention the cost for damages.

Currently, squatting is not illegal in North Carolina or South Carolina. However, South Carolina State Senator Dwight Loftis (R-Greenville) introduced S.1231, which would create a criminal penalty for a person who unlawfully trespasses upon a residential dwelling and intentionally damages the dwelling causing $1,000.00 or more in damages. The bill is currently in committee and South Carolina Apartment Association members lobbied lawmakers for a committee hearing. North Carolina lawmakers are drafting similar legislation and are working on the bill language.

Thankfully, our state lawmakers recognize the dire situation rental property owners are in if they don’t make squatter behavior illegal. This trend is affecting numerous industries worldwide and it’s the business owners who financially cover the expense. Local rental property owners are doing their best to address Charlotte’s housing affordability problem but accepting squatters isn’t in their budget.