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Due Diligence in Disputed Dwellings: Squatter Awareness for Inspectors
by Isaac Peck, Publisher
You push open the front door, clipboard in hand, expecting dust and silence. Instead, the air is thick with the scent of instant noodles and damp laundry. There’s a mattress on the living room floor and a phone charger plugged into the wall. Someone’s living here. Nobody told you this; the agents and seller must have all been unaware. Heart pounding, your eyes scan for movement. Then you hear footsteps, slow and deliberate, coming from upstairs. You’re not alone.
This inspection just became something else entirely.
The Reality of Squatters and the Coming Increase in Squatting
Squatters are an uncomfortable but increasingly common reality in the real estate landscape—and home inspectors are often the last professionals to discover them. As housing costs continue to rise and vacancy rates climb, squatting is poised to become more frequent, especially in areas with high foreclosure rates, slow property turnover, or ambiguous ownership records. For inspectors, this means more surprise encounters, more complicated site visits, and a greater need for calm, informed responses.
The reasons behind this trend are structural, not sensational. Economic instability, housing shortages, and a growing population of unhoused or precariously housed individuals have created conditions where occupying an empty home—illegally or semi-legally—can feel like the only viable option. At the same time, many properties sit vacant due to probate delays, investor neglect, or stalled renovations. In some jurisdictions, laws governing adverse possession or tenant protections can make it difficult for owners to quickly remove unauthorized occupants, especially if utilities are active or mail is being delivered.
And with increasing mass-purchases of vacant properties by financial firms and companies that are often far away from those properties, those rows of empty homes will present a golden opportunity for illicit occupation.
While several states have recently passed legislation aimed at streamlining the removal of squatters, the practical impact of these laws remains uncertain. Enforcement varies widely, and legal definitions of “squatter” versus “tenant” can be murky. For home inspectors, this legal gray area underscores the importance of preparation, not panic. Squatters may be present during inspections, and their existence doesn’t necessarily mean danger—but it does mean inspectors should know how to document, report, and proceed according to best practices.
This article explores what inspectors need to understand about squatting: why it’s increasing, how it affects inspections, and what best practices can help inspectors stay safe, ethical, and effective. The goal isn’t to vilify squatters or dramatize encounters, but rather to equip inspectors with the knowledge and mindset to navigate a shifting housing landscape with confidence.
Many Causes
Squatting arises from a complex web of economic, legal, social, and psychological factors. For home inspectors, understanding this landscape is key to approaching squatter-related inspections with professionalism and not alarm.
At the forefront is the housing affordability crisis. In many regions, rents and home prices have outpaced wages for years, leaving thousands unable to secure stable housing. When shelters are full and rental applications routinely denied, occupying a vacant property—especially one that appears abandoned—can feel like the only option.
Vacancy itself is a major driver. Homes left empty due to foreclosure, probate delays, stalled renovations, or speculative investment often sit unmonitored for months. These properties may have working utilities, unsecured entrances, or signs of neglect that make them attractive to squatters seeking shelter or a foothold.
Legal ambiguity adds another layer. In some states, laws around adverse possession, tenant protections, or eviction procedures can unintentionally incentivize squatting. If someone occupies a property long enough, receives mail there, or pays utility bills, they may gain temporary legal standing that complicates removal, particularly in jurisdictions where law enforcement won’t intervene without a court order (Some jurisdictions allow law enforcement or landlords to evict without a court order, often under emergency or administrative rules. Others require formal judicial proceedings to protect due process, ensuring tenants receive notice, a hearing, and legal recourse before removal).
Although often overlooked, psychological factors also play a role in homelessness and squatting. Mental illness, trauma, and substance-use disorders can contribute to housing instability and make it difficult for individuals to navigate traditional housing systems. Squatting may be a survival strategy for those who’ve fallen through institutional cracks.
Finally, squatting is sometimes a social or political statement. Some occupants are part of organized groups reclaiming unused space for collective living or protest. These situations are likely to be legally complex or emotionally charged.
As a home inspector, you aren’t responsible for people’s economic insecurity, mental instability, or political radicalism. You’re responsible for your client getting what they are paying you for, and your own safety and security. But understanding these many causes of squatting will help you recognize and understand the situations you encounter.
You are, in fact, increasingly likely to encounter such situations. Several sources point to immanent increases in unauthorized occupation of properties, including reports from metro areas in several parts of the country. One of the clearest indicators that squatting is likely to persist and increase is the rising number of cost-burdened renters: those spending more than 30 percent of their income on housing. According to Harvard’s Joint Center for Housing Studies, high rent and stagnant wages have pushed more households into financial precarity, contributing to a sharp rise in homelessness and informal housing arrangements. Combined with elevated home prices, tight inventory, and legal ambiguity, this trend suggests squatting will remain a growing challenge.
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Squatters and the Law
Squatting presents a legal paradox: while property rights are foundational to U.S. law, enforcement against unauthorized occupants is often slow, inconsistent, or ineffective. Property owners rely on legal tools like trespass laws and eviction proceedings, but these mechanisms are rarely swift. Police may hesitate to intervene without a court order, and civil processes can take weeks or months. For squatters, this delay can feel like protection; for owners and inspectors, it can feel like futility. The law is used to manage squatting, but rarely to prevent it, and most of the time it lags behind the realities on the ground.
Adverse possession is one of several legal frameworks that intersect with squatting, although it’s often misunderstood. Originating in 13th-century England and formalized by the 1500s, adverse possession was designed to encourage stewardship of neglected land, not to legitimize informal shelter. It rewards individuals who can afford to settle in, make improvements, and treat the property as their own over many years.
In the U.S., adverse possession laws vary by state but generally require continuous, open, and unauthorized occupancy for a set period (typically five to 20 years), along with payment of property taxes and upkeep. It’s a high bar. We occasionally hear wild stories like Steven DeCaprio, who moved into a long-abandoned home in Oakland, California, then made extensive repairs, paid taxes, and eventually won legal ownership. But most squatters lack the resources, legal knowledge, or time to meet these conditions. Many properties aren’t truly abandoned, and owners or municipalities intervene long before a claim can be made. For those facing housing insecurity, adverse possession is more myth than solution.
Squatters’ rights have a separate, global history. In medieval Europe, landless peasants sometimes settled on unused land during depopulation crises. In the industrial era, urban squatters built homes on neglected lots. In the 20th century, movements like Brazil’s MTST and South Africa’s shack dwellers used squatting as a form of housing justice. Some countries now allow organized squatters to negotiate legal title or offer temporary protections.
In the U.S., however, squatter tolerance has been limited. While some states once had occupant-friendly adverse possession laws, recent trends show a tightening of enforcement. As housing prices continue to rise and public frustration grows, states are getting tougher. In the summer of 2025, governors in Texas and Florida signed laws focused on streamlining the eviction process for property owners, primarily targeting unauthorized occupants. Mississippi Governor Tate Reeves signed similar legislation in April.
Even California, with its liberal reputation, has extended protection for owners of vacant properties, allowing them to file no-trespass notices. Yet unauthorized occupants still can’t be forcibly removed without formal eviction proceedings, and police may be unable to intervene without a court order. This legal bottleneck has led some property owners to seek alternative solutions, like hiring the Squatter Squad, a private company that offers “fast and effective squatter removal and prevention services throughout California,” sometimes using tactics like posing as home inspectors.
You Will Need a Plan
Let’s read that again: private security firms dedicated to removing squatters are posing as you. This raises an important risk management question for inspectors, but it isn’t the only one.
Home inspectors operate in a profession built on trust, neutrality, and clear documentation. When third parties impersonate inspectors, whether to intimidate squatters or gain access to a property, it undermines trust and exposes legitimate inspectors to potential risks. Inspectors should be aware of impersonation scams and consider carrying visible credentials, notifying clients before arrival, and documenting any suspicious activity.
Another risk involves unexpected encounters. Squatters may be present during inspections, and while many are nonviolent, inspectors should never assume a property is empty. Inspectors should follow safety protocols: announce their presence, avoid entering alone, and retreat if they feel unsafe. Consider including squatter awareness in your training for others you bring on board, emphasizing withdrawal and documentation over confrontation.
Legal ambiguity is also a concern. As an inspector, you must document what you see and what you do on the property, but this means you may be asked to testify in eviction proceedings. Sticking to factual observations and avoiding making your own legal judgments about tenancy or ownership will help. Clear, objective reporting protects both you and your clients.
There’s also the risk of property damage or liability. If squatters have altered the home’s systems, left hazardous materials, or created unsafe conditions, inspectors could be exposed to injury or claims. Inspectors should treat such properties as high-risk environments and consider adjusting their scope or requiring waivers.
And as we’ll say more than once, you should not get drawn into any disputes. Clients may ask for opinions on how to remove squatters or interpret local laws. Inspectors should refer such questions to legal professionals and stay in your lane. Even if you have a personal opinion, there’s no reason to share it.
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Safety Tips
Being prepared, planning for the unexpected, and prioritizing your own safety are hopefully already things you know how to do as a home inspector. It helps to consider the possibility of unexpected inhabitants on a property the same way you would consider other possible material facts about the property when planning your visit. That means thinking ahead about entry procedures, communication protocols, and how to document anything out of the ordinary. A little foresight can help you stay safe, protect your work, and avoid surprises that could complicate the inspection or your liability. On top of all that, you should always prioritize your own safety.
Remember that you can turn around and walk out the door. You can leave if you know it’s not safe, and even if you just feel like it’s not safe. You’re a business operator and party to a contract, not the knight of some order pledged to reckless loyalty.
Be conscious of your surroundings. Stay alert from the moment you arrive. Signs like broken locks, covered windows, or unexpected noise can indicate unauthorized occupancy—and may require you to pause the inspection for safety.
Make sure someone knows where you are and for how long. Share your location and estimated inspection time with a colleague, friend, or supervisor. If something goes wrong, having someone aware of your schedule can make all the difference in getting help quickly.
If you receive information beforehand indicating a situation might be dangerous, don’t go in. Talk to your clients about it. If a listing agent, neighbor, or prior inspector flags concerns, from aggressive behavior to illegal activity, and particularly signs of forced or unauthorized entry, pause and consult with your client before proceeding. Safety should never be compromised for the sake of a deadline.
Be mindful of property disputes and avoid them whenever possible. Just as disputes among family members can threaten the safety of home inspectors, squatters may claim legal rights or present documents that appear legitimate. Don’t engage or attempt to resolve these disputes. Leave the property, document what you observe, and refer the issue to your client or legal professionals.
Remember that you are in charge of your business and practices. You have the right and responsibility to set boundaries, decline work offers, reschedule inspections, or refuse entry when conditions feel unsafe. And transparency with your clients will lead many of them to appreciate your firm boundaries rather than resent them.
OREP is here to help. At OREP, we like to remind inspectors that safety and professionalism go hand-in-hand. That’s why we offer more than just insurance: we also provide tools to help you stay informed and protected. Our risk management articles cover emerging issues like squatter encounters, property disputes, and liability pitfalls, so you’re never caught off guard. We also partner with trusted educators to offer continuing education courses on safety, legal compliance, and inspection standards tailored to your region.
Squatters Aren’t Going Anywhere
Squatting remains a stubborn reality in housing, driven by legal gaps, market neglect, inconsistent enforcement, and the myriad systemic causes of homelessness. Vacant or distressed homes, especially in areas popular with flippers and rehabbers, tend to attract squatters. Real estate blogs sometimes sensationalize these cases, reinforcing stereotypes about addiction or criminal behavior. The unpleasant reality is that some squatters will behave violently or otherwise unstably, and there’s no reason you should ever need to be or find yourself getting involved with them once you realize they’re on the property. But squatting isn’t just about those individuals; it’s about properties being left empty, unmonitored, or poorly maintained. It’s about opportunities.
Homes owned by big firms are especially vulnerable. In DeKalb County, Georgia, neighbors recently reported squatters occupying homes owned by large firms like Invitation Homes. These properties were boarded up, visibly neglected, and easy to access. When dozens of homes sit vacant in one neighborhood, it creates a kind of squatter infrastructure, an open invitation for occupation.
Anti-squatter laws do not address all issues and may contain certain loopholes. For example, Georgia’s 2024 anti-squatter law allows police to remove squatters within three days, but requires a signed affidavit from the owner to do so. If the owner has died, there are no provisions for executors, and no enforcement is possible. And although squatting thrives where ownership is distant and oversight weak, it can also happen when owners are nearby, and agents and sellers are doing the best they can to keep an eye on the property.
We began with a scenario where a routine walkthrough turns into a squatter encounter. What happens next depends a lot on how you handle it, including how you’ve planned for it. And that’s just it: treat unauthorized occupation as part of the home’s condition like any other unexpected condition you find. Like any other condition, it calls for steady judgment, solid documentation, and a clear heads-up to your client about how it affects your work. That kind of response protects your report and reputation while also giving your client what they need to move forward. Stay safe out there!
About the Author
Isaac Peck is the Publisher of Working RE magazine and the Senior Broker and President of OREP.org, a leading provider of E&O insurance for savvy professionals in 50 states and DC. Over 14,000 professionals trust OREP for their E&O and liability insurance. Isaac received his master’s degree in accounting at San Diego State University. Reach Isaac at isaac@orep.org or (888) 347-5273. CA License #4116465.
Published by OREP Insurance Services, LLC. Calif. License #0K99465