There are plenty of things for rental property owners to worry about–adverse possession is just one of them. While this is pretty low risk compared to things like property damage or lease violations, it’s important to know what it is and how to avoid it. Today, we’ll review how squatters can take possession of a property, how to prevent adverse possession, and what to do if you find squatters on your property.
Contents of This Article:
- What Is Adverse Possession for Rentals?
- Adverse Possession vs. Squatting
- How Can Someone Claim Adverse Possession
- How to Avoid Adverse Possession
- Protect Your Properties With BMG
What Is Adverse Possession?
You may never think that someone who illegally occupies your property has rights. However, in some states, a squatter can claim legal possession of a property if they can prove adverse possession. So, what is adverse possession?
Simply put, adverse possession is a legal process that allows a non-owner occupant to claim ownership of a property over a certain period of time. You may have also heard this be called “squatter’s rights.” Most Baltimore property managers and landlords are familiar with squatters. However, there are a few key differences between adverse possession and squatting.
Adverse Possession vs. Squatting
A squatter is someone who illegally and intentionally takes residence in a property. For instance, if you have a vacant rental property and someone lives there without your permission or knowledge, they’d be considered a squatter.
On the other hand, adverse possession is a legal way for someone to take ownership of a property. For instance, if a person has occupied and used your property for a certain amount of time, they may be able to claim ownership. So, while it’s unlikely that a squatter has lived in your property for long enough, they may be able to claim legal ownership.
Sometimes, adverse possession isn’t malicious and may even happen unintentionally. For example, if a neighbor builds a fence that goes into your property and uses the land inside the fence, they may be able to claim possession of that portion of your property. However, there are several requirements that are necessary for someone to claim adverse possession. We’ll review those next.
How Can Someone Claim Adverse Possession?
Adverse possession can be a tricky topic, especially since the requirements can vary depending on jurisdiction. For instance, some states allow claims by individuals who are unaware that they used and occupied a property. However, other states require that the individual acknowledges that they’re trespassing on someone else’s property. The length of time required to claim adverse possession may also vary, ranging from two years to 30 years.
Some of the standard requirements for a valid claim include the following.
- Continuous Use- The individual making the claim must maintain continuous, uninterrupted possession of the property for the required amount of time.
- Exclusive Use- To make a claim, the individual must have exclusive possession of the property and act as if they’re the actual owner. Additionally, any legal owners must be excluded from using the property.
- Open Possession- The possessor must be upfront and honest about using the property instead of hiding it. In other words, their use of the property should be obvious to neighbors or onlookers.
- Actual Possession– The individual must actively possess the property for the state’s required amount of time and treat the property as if they own it.
- Hostile Occupation- The possessor making the claim must occupy the property without the owner’s permission or knowledge. Not that it’s not always a “hostile” or negative scenario; sometimes, it’s an honest mistake.
How to Avoid Adverse Possession
There are several things you can do to prevent squatters from taking possession of your rental property. For one, it’s important to know what the laws regarding adverse possession are in your jurisdiction. Additionally, you’ll want to ensure your properties are secure and properly maintained while vacant.
Here are a few tips for landlords to avoid adverse possession.
- Regularly Inspect the Property
- Install a Security System
- Post “No Trespassing” Signs
- Limit Vacancies in Your Rental
- Work With a Property Management Team
Regularly Inspect the Property
If you don’t live near your rental or vacation property, make a point to inspect it every so often. Regularly visiting the property allows you to see what’s going on there. Usually, it’s quite obvious if someone has trespassed and taken over your property.
Install a Security System
Installing a security system is one of the best ways to limit trespassers and avoid squatters. When people see that there are cameras, they typically won’t mess with a vacant rental property. However, if they do, a security system will allow you to see who used your property without your permission.
Post “No Trespassing” Signs
While it’s not a foolproof technique, posting “No Trespassing” signs around points of entry can deter trespassers from entering your property.
Limit Vacancies in Your Rental
If you’re worried about squatters taking over your vacant rental property, finding new tenants is one of the best ways to eliminate this problem. Using marketing techniques and working with a property manager can help limit vacancies, reducing the chances of someone taking over your property without your permission.
Work With a Property Management Team
Finding the right property management team to work with helps reduce adverse possession claims. After all, they’re there to help maintain the property, find qualified tenants to live there, and perform regular inspections.
Protect Your Properties With BMG
Protecting you and your rental properties from adverse possession may not be on your list of worries as a landlord. However, it’s something to keep in the back of your mind, especially if you own several properties in different cities or states.
If you’re looking for the best way to protect your properties, Bay Property Management Group can help! Our team of experienced property managers can help you find qualified tenants and reduce vacancies. With our comprehensive rental management services, you don’t need to worry about a thing.
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Contact BMG today to learn how we can help your rentals in Baltimore, Philadelphia, Northern Virginia, and Washington, DC.