Are Squatter Scams Real or Just Hype?

Are Squatter Scams Real or Just Hype?

There’s been a lot of buzz lately about squatter scams, particularly on social media. Some people claim it’s just another “manufactured crisis” driven by sensational headlines and TikTok.

But as a property management company with boots on the ground in Detroit, we can confidently say—squatter scams are a genuine issue, and they’re becoming increasingly prevalent.

The Myth of the “Manufactured Crisis”

It’s easy to dismiss squatter scams as exaggerated media hype. However, when you dig deeper, it becomes clear that this is a legitimate problem affecting landlords and property owners across the country. Numerous states, including Florida, New York, and Georgia, have recently introduced laws specifically aimed at tackling this issue.

While platforms like TikTok might amplify awareness or fear, the root of the problem lies in real-world events, not fabricated stories.

The Growing Threat of Squatter Scams

Squatter scams are not just stories floating around online; they’re causing real trouble in various cities.

Take Chicago, for example, where squatter scams have become so frequent that real estate agents are warning landlords to be extra cautious.

Here in Detroit, while the situation may not grab as many headlines, the threat is very much present.

A Closer Look at Different Cities

• Chicago: Reports indicate a significant rise in squatter scams, with incidents doubling in some areas over recent months.
• Florida and New York: Both states are tackling the problem head-on with new legislation, indicating widespread and serious concerns.
• Detroit: Although not as severe as in other locations, squatter scams are on the rise. Our internal data shows an increase, especially in vacant rental properties.

Protecting Your Investments

Landlords must be proactive to protect their properties from becoming targets of squatter scams. Here are some effective strategies:

• Regular Inspections: Frequently visit your vacant properties to catch any suspicious activity early.
• Secure Entry Points: Ensure all doors and windows are locked. Consider installing security systems or cameras to deter squatters.
• Thorough Tenant Screening: Conduct comprehensive background checks, verify references, and watch for any red flags during the tenant vetting process.
• Legal Preparedness: Familiarize yourself with local laws regarding squatters. Having a legal plan ready can save you time and hassle if eviction becomes necessary.
• A Brilliant PMC: A good property management company will have more time to monitor your property than you do as a sole landlord, especially if you have multiple vacant units to keep an eye on at once.

Conclusion

Squatter scams are a real issue, not just a media scare.

Landlords across the U.S., including in Detroit, are increasingly encountering these scams. By staying vigilant and taking proactive steps, you can safeguard your investments and avoid falling victim to this growing trend.

Stay vigilant and keep your vacant properties secure. Don’t let scammers take advantage.

Contact us to find out how we can help safeguard your rental units in the Metro Detroit area and save you time, all while maximizing returns.