Why Real Estate Investors Hope Florida's Tough New Anti-Squatter Law Goes Nationwide

In a move that is music to investment property owners' ears, Florida Gov. Ron DeSantis signed one of America's strictest anti-squatter laws. The new legislation will make it much easier for landlords and property owners to rid their property of squatters — people who move into vacant properties without permission and stay long enough to acquire legal privileges known as "squatters' rights."

Aside from having their property hit by a natural disaster, most real estate investors will tell you that the scariest scenario they can imagine is having their property occupied by a squatter. The Florida law closes many of the loopholes that squatters have historically exploited to remain illegally in possession of a property by giving landlords the ability to have squatters quickly removed. It also establishes criminal penalties for squatters. 

Florida's Anti-Squatter Law Puts Power Back In Property Owners' Hands

Florida's new law, HB621, eliminates much of the protracted eviction process that landlords traditionally go through to remove squatters. In his public remarks about the new bill, DeSantis said, "If you’re the victim of squatting, you can simply fill out a form, give it to your local sheriff, and the sheriff is instructed to go and remove the people who are inhabiting your dwelling illegally. And that will happen very quickly.” 

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Elon Musk Is Bullish On Austin. Here’s How To Invest In The City’s Growth Before He Floods It With New Tech Workers.

Once landlords have taken this form to their local sheriff, they will schedule the squatter for eviction if the landlord can prove the following:

• That the squatter entered the premises illegally or without permission and remains in possession of the property
•  That the property owner or owner's agent has instructed the squatter to leave, and the squatter has refused to do so
• That the occupant of the premises is not a current or former tenant of the landlord or is not party to a lawsuit against the property owner

 Florida Squatters May Face Criminal Charges

Perhaps more importantly, HB621 would take squatting out of the realm of being a "victimless crime" and hold squatters criminally responsible for their actions. Once HB621 goes into effect on July 1, squatters will face criminal charges in addition to the threat of eviction. HB621 would implement the following changes to Florida's criminal code:

• Make it a first-degree misdemeanor for squatters to create or present a false written document that grants them rights as residents or any rights to the property
• Make it a second-degree felony to illegally reside in a property and purposefully do more than $1,000 in damage
• Make it a first-degree felony to advertise a property for sale or rent without the legal authority to do so

These tough legal penalties might prove to be the most effective measures against squatters. Up to now, Florida squatters could go from property to property and inflict their unique brand of chaos on landlords because the eviction proceedings necessary to remove them were civil cases and there was no criminal jeopardy attached. While that's still the case for squatters in many other states, the landscape in Florida has changed.

Trending

• Want To Grow Your Wealth Passively? These High-Yield Real Estate Notes Might Be Your Holy Grail

Why These Changes Matter

In states without laws like HB621, squatters can use loopholes in state laws and "establish" themselves as legal residents through a variety of means. Some of their tactics include staying at the property for a certain number of days, changing the locks or drawing up phony leases between themselves and the landlord. After they've established themselves as residents, property owners must go through a civil process to get squatters out.

This process can take months, or even years in extreme circumstances, and in a classic case of adding insult to injury, squatters don't pay the landlord a nickel in rent for the duration of the legal proceedings necessary to remove them. Making matters worse, squatters are known to do extreme amounts of damage to the properties they illegally occupy, and they can leave property owners with five- and six-figure repair bills.

Squatting is not a victimless action. In addition to handcuffing real estate investors and sticking them with legal and repair bills, every time a squatter takes unlawful possession of a property, they deny a housing opportunity for a legitimate tenant. No one wins with squatting except the squatter. HB621 is taking strong steps to change that.

Could Laws Like HB621 Go Nationwide?

It's a sure bet that legislators in other states will look at how effective HB621 is in eliminating squatters, or at least untying landlords’ hands when it comes to having squatters removed. Squatting is not just a Florida problem, but if HB621 yields positive results, it may result in a nationwide legal shift toward harsh anti-squatting laws. Landlords and real estate investors have their fingers crossed.

Read Next:

• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
• Miami Is Expected To Take New York's Place As The US Financial Capital. Invest In It With $500 Before That Happens.