Squatters' Rights and Adverse Possession

By James Kimmons

Let's start with a fictional situation relating to land ownership rights, but landowners in many states have experienced similar situations over the years.

You buy a 50 acre wooded unimproved parcel of land as an investment.  You also think that you may convert it into a retirement or vacation home property sometime in the future, but that's years away. It isn't in your state, and you go years without visiting the property.

You ask locals to check it now and then, but you don't really follow up.

Seven years later you get an official document in the mail telling you that someone is taking possession of your land.  You call an attorney, and after some research you find that you can do nothing about it, as in that state a squatter can take an Adverse Possession action after seven years.

You just lost your investment and your retirement home.

No, it doesn't happen often, but adverse possession in some form or other with different time limits is on the books in almost every state.  A squatter is someone who moves onto your property and takes up residence without your knowledge or approval.  If they stay long enough without discovery and removal, you could end up in this situation.

What they need to do:

In most states, and these vary in language, there are five basic requirements a squatter must satisfy in order to successfully use adverse possession.

1. 1.They must take actual exclusive possession of the land.  It can be residential or for a business, but they must take over the use of the land.

1. 2.The use of the land must be open and obvious, meaning they can be seen using the property, not hiding in a grove of trees at one corner.
2. 3.They can't share the use of the land with anyone else, in other words exclusive possession and use.
3. 4.They can't be there with the owner's permission in any way.  The owner would have no knowledge of their use of the land and would oppose it if known.

1. 5.Their possession of the property must be continuous for the statutory period.  In our example, this means that they used and occupied the property every day throughout the seven year period.

 As regards the continuous use requirement, owners who check their land regularly and discover a squatter can put a kink in their plans.  If you inspect your property and find squatters, check with the local authorities and an attorney about your rights and take the action required to evict them from the property.  Even if they return again, the statutory time period starts over again.

This is important stuff because the squatter can take your land and title away from you. And, they do not have to compensate you in any way.  You simply lose your property.  If you can't or do not want to visit the property at least annually, pay someone to go out and take a lot of photos with a GPS camera every year and submit you a written report that nobody was found on the property.  This could be a real estate agent, appraiser, surveyor, or just about anyone willing to do it.

If you think about this, there is plenty of motivation for some people to do this to you. Perhaps you own a lot of land, maybe 100 acres or more, and it's pretty remote.  You don't watch it, and someone finds that out.  They drive an old bus out, live in it, put in an outhouse, and maybe even some solar power.  They have free rent, and their goal is to someday own your land.  Guard your interests.

Sample Move Out Checklist for Landlords and Tenants

By Erin Eberlin

Tenant move out can be a confusing time for landlords and tenants. Checklists are one way to keep both parties on the same page about what is expected during this time. This sample checklist outlines the condition the property should be left in.

What Is a Move Out Checklist?

The tenant move out checklist is a form that should be attached as a rider to the original lease agreement. This checklist provides instructions for the tenant on the procedures and the tasks they need to complete upon moving out of your property.

Every landlord's move out checklist can be different. Some like to break down detailed procedures by room, while others only provide general terms of what is expected. Therefore, you should tailor your checklist to meet the specific needs of your property 

Why Is a Move Out Checklist Important?

Move out checklists are especially important when it comes to the security deposit.

If the tenant understands how they are supposed to leave the unit, it will help minimize disputes. Following these instructions, and adhering to the terms of their lease, will help ensure the tenant receives their security deposit back in full. 

Sample Move Out Checklist

    1._____Please call 3-5 days prior to your move-out to schedule your inspection

1.  2._____ Apartment must be broom swept clean, mopped, and vacuumed 
2.  3._____ All kitchen(s) and bathroom(s) must be completely clean 
3.  4._____ All walls must be clean and painted the same color as before tenancy began (Unless Tenant has been given prior written permission from Landlord) 
4.  5._____ Vacuum and clean any/all carpet(s) 
5.  6._____ Clean all windows 
6.  7._____ Remove all of your personal possessions and belongings.
7.  8._____ No trash shall be left behind; Do NOT leave garbage at the curb
    9._____ If applicable, all exterior areas shall be cleaned of debris and left clean
8. 10._____ If applicable, exterior lawn and landscaping shall be presentable 
9. 11._____ Leave all kitchen appliances, window treatments, phone jacks, etc.
10. 12._____ All keys shall be returned at inspection 
1. 13._____ All light fixtures are to work properly with working light bulbs
2. 14._____ All electric is to work properly
3. 15._____ All plumbing is to be free of any leaks or blockages
4. 16._____ All heating is to be working properly
5. 17._____ All smoke alarm(s) and carbon monoxide alarm(s) shall be working properly
6. 18._____ Leave ALL utilities on until your move-out inspection has completed
7. 19._____ Please call 3-5 days prior to your move-out to schedule your inspection.
8. 
   
9. All of the aforementioned items need to be done PRIOR to your move-out inspection so that you can RECEIVE YOUR FULL SECURITY DEPOSIT BACK (less any withholding from earlier tenancy). Any and all repairs, repainting, trash removal, cleaning, and/or any other expenses that are attributed to restoring your home to its condition prior to your tenancy will be deducted from your Security Deposit.
10. 
    
11. If additional money is needed to restore said home, Landlord will send Tenant a bill and/or file legal suit for said money in court. Your Security Deposit will be mailed within 30 days of your move-out inspection to the address you provide Landlord (if no new address is given, any remaining Security Deposit money will be mailed to current mailing address and the Post Office will be responsible for forwarding any/all mail to your new listed address). Please also note the replace/repair cost(s) for items you leave in disarray.
12. 
    
13. Please remember to deliver your home in the same condition it was in prior to your     tenancy. This will ensure YOU RECEIVE THE MOST MONEY POSSIBLE!
14. 
    
15.  Good luck with your move.

1. 1. 
      
    

Getting Property Rental Ready

By Than Merrill

One of the most important things to remember, if you are attempting to make a property rental ready, is that each new tenant and lease has to be treated as a separate entity. This does not mean that you should not have a set of rules and guidelines to follow, but each time a tenant moves in should be unique. They will not care about any work you have done before they move in. All they want to see is the condition of the property on the days leading up to the move in date. To have a successful lease, what you do before the lease starts can often dictate how your term is going to go.

Even if you only have a few days from the end of the existing lease to the start of the new one, you need to follow a plan. You should have a checklist for everything you want to do. Start with the basic cosmetic items like painting and cleaning. Repairing or replacing little things like door knobs or rug mats may seem like a pain, but your tenant will appreciate it. Focus on cleanliness and safety, and look at the property in terms of what you would want fixed if you lived there.  The little details count when making a property rental ready.

It helps to have someone close to you, but not in the business, walk through the house and give their feedback on what changes you should make. It is not the end of the world if the house isn’t 100% finished on the move in date. In this case, you should prorate the rent to as many days as they are in the property. This sets the tone for a happy, trusting relationship between you and your tenant. First impressions are important when your tenant moves in. Make sure you have the unit rental ready and looking as you would want it if you lived there.

How To Beat Being Priced Out Of Renting In Your Area

Posted by JD Esajian

Affordable housing is becoming a major issue in many American cities. Many residents and key workers are simply being priced out of the cities they have lived in for years, and where their kids have been growing up. So if you feel like you are being priced out of town, what can you do about it?

America’s Affordable Housing Crisis

While we technically still have a long way to go to return to previous real estate highs, many are complaining about a lack of affordable housing. Earnings just haven’t kept pace with rent and home price growth. Even if minimum wage workers win the battle for $15 an hour, they’ll barely be making 30% to 50% of what they need to afford the median priced apartment in many cities. According to statistics from Zillow, you’d need to make over $416,000 to afford the average apartment in the most desirable part of the country. Within the next 12 months, most renters will be up for lease renewal. And they aren’t going to like the new numbers.

So what can renters do to avoid being priced out of their cities, or out of housing altogether?

Why Outrageous Rents Aren’t A Big Deal Anymore?

Sky high rents in areas like San Francisco, CA have many worried that key workers simply can’t afford to live nearby. An area that lacks good teachers, emergency workers, and law enforcement could be headed toward some of these issues. However, with over half of individuals now expected to be working remotely, the dynamics are changing. This is causing a glitch in employment figures. But it also means that individuals are free to move anywhere. At least where there is decent internet service. Instead of a stampede to dense urban areas with overpriced micro-apartments, many could choose to move outward to the burbs and rural areas. Here, housing costs are dramatically lower. Yet, the same incomes can be achieved as if working in San Francisco or New York.

Of course, not everyone wants leave their home city. Not everyone wants to move far from the best healthcare, their family, or take their kids out of their schools and away from their friends. So what are the other options?

Airbnb It

One way to offset higher rents and home prices is to rent out a part of your property. Even renters can do this if they get permission from their landlords. Rent a room, or two, and bring in enough income to combat higher rent.

Build It

Building a home may even be a less expensive option for some. Shipping container homes, tiny homes, and manufactured homes have all been trending. Not all are less expensive options, but some can be. And of course, not everyone wants to live in these alternative housing options. However, for some, they could mean eliminating housing costs far earlier. If you are paying $1,000 in rent now, a $24,000 manufactured home would mean you could be rent and mortgage free for life in just 24 months.

Buy Now Before It’s Too Late

Unless you realistically expect your income to rise dramatically and outpace housing costs, this is the time to buy a home. Interest rates are great, and they are only going up. Rates make much more of a difference to the real cost of buying a home than asking prices. So while you might have to pay $10,000 or $20,000 more for the same home today versus last year, this is still the cheapest it is going to get. In many areas, buying is even far cheaper than renting today. And when you consider how tough many rental applications and screening processes have become, it is even easier to qualify to buy a house than to rent one. Even if you pay the same amount in mortgage payments as you were in rent, at least you are gaining equity, and you’ll only have those payments for 15 to 30 years, until your mortgage is paid off. That sure beats a lifetime of rising rent payments.

Note: if you can’t afford to buy where you really want to live, you can buy and rent a property out for a profit. Then use the cash flow to pay your rent where you really want to be.

Key workers can also find many deals. Some foreclosure auctions offer up to 50% discounts to law enforcement, teachers, and EMTs. Real estate wholesalers can be a great resource for everyone looking for discounts on houses and condos.

However, once you buy a home and solve your own affordable housing crisis don’t forget to help someone else. A huge part of the problem is just accessing the right information. Too few people are aware of their options, or of how easy buying a home really is today.

Landlord's Responsibilities to Their Tenants From Safety to SecurityDeposits

From Erin Eberlin

As a landlord, you have a responsibility to your tenants. While you expect them to pay you rent each month, when they signed that lease, they have certain expectations of you as well. Here are some of the responsibilities a landlord has to their tenants.

Responsibility to Maintain a Safe Environment

A tenant expects their home to be safe. As a landlord, you are responsible for providing your tenants with a secure place to reside.

Your tenants should feel safe inside of their apartment. This means you should ensure all doors and windows are properly secured and have appropriate working locks. All front doors should, at the very least, have a deadbolt lock.

You should also make sure no one else has a key to the tenant’s apartment. You should always change the locks once a prior tenant moves out and before a new one moves in. If you are going to give keys to Realtors to show your vacancies, make sure to use a generic lock and then replace the lock prior to your tenant moving in.

You should not allow unsupervised repairmen inside a tenant’s apartment as this could lead to claims of robbery. You should make sure you have followed all safety codes, such as installing working smoke and carbon monoxide detectors.

Tenants should feel safe outside of the building as well. Make sure any outdoor areas are well lit and free from hazards, such as a broken step or unstable handrail.

If you have a multi-unit property, tenants should feel safe with the other tenants in the building. You need to properly screen all tenants who are looking to rent your property and check for criminal history or other red flags. You should also be wary of allowing any animals that are considered dangerous breeds. These types of animals have a higher propensity to bite and can make other tenants feel uncomfortable.

Maintain a Quiet Environment

A tenant expects their home to be quiet. Again, when screening tenants, you should look for those you believe will be respectful of others. You should also have a strict quiet hours policy in your property that all tenants must consent to - for example: no loud noises, music or otherwise, after 10pm.

Responsibility to Maintain a Clean Environment

A tenant expects their home to be clean. While you are not responsible for washing a tenant’s dishes or picking their clothes up off the floor, as a landlord, you do have certain responsibilities to maintain the property as a whole.

You need to make sure trash is taken out, either by yourself or through an agreement with a tenant or superintendent. You need to make sure common areas are well cared for; that they are free from garbage, mopped or vacuumed on a set schedule and have working light bulbs. You must maintain outdoor areas in the same manner; make sure the grass is cut, outdoor lights are functioning and the yard is free from debris.

If a tenant has a problem with rodents, roaches, bedbugs or other, you will need to rid the problem yourself or hire a professional to do so. Be careful of putting down insecticideswithout a license as you may take on additional liability for doing so.

Respond to Repair Requests Promptly

A tenant pays you rent to reside in your property. It is your duty to them to respond to requests for repairs in a reasonable amount of time. The severity of the repair should warrant how quickly you should respond. A cabinet door off of its hinges does not need immediate attention, but should still be taken care of in no more than a week.

Lack of heat in the winter is a repair that requires immediate attention, both for the safety of the tenant and for the benefit of your property. The lack of heat may cause your water pipes to freeze, and that could lead to thousands of dollars in repair costs. Also, you could face legal ramifications if you are at fault for the heat not being on—for example: the lack of heat is due to a faulty furnace and not because the tenant did not pay their gas bill.

Landlords Should Advise All Tenants to Purchase Renters Insurance

Many tenants do not know they are not covered under your insurance policy. You should advise all tenants to purchase renters insurance so their possessions are protected in the event of a fire, flood or other disaster. Renters insurance can also help protect their liability for an accident a guest may have inside of their apartment. Renters insurance can be purchased for as little as $10 a month.

Properly Store Tenants' Security Deposits

As a landlord, it is your legal responsibility to keep a tenant’s security deposit according to your state's laws. Many states are different, so you will have to check with your state to learn what is required.

For example:

In New Jersey, landlords with 10 or more rental units must keep their tenant’s security deposit in a separate interest bearing account. They must also inform the tenant in writing, within 30 days, of the amount of their security deposit, where their security deposit is being held and the interest rate.

The landlord is also responsible for informing the tenant annually of how much interest the security deposit has earned, for informing the tenant if their security deposit is transferred to another account and for informing the tenant if the property changes ownership. The landlord must also return the deposit and any interest, minus deductions for damages or other allowed expenses, within 30 days of the lease termination.