At the moment there are around 20,000 squatters illegally living in residential and commercial rental properties according to leading insurance companies in the United Kingdom.

If we make the assumption that there are probably four squatters in each location then as many as 5,000 owners of rental property are experiencing a loss of rent, reduced property values and potential damage from unwelcome, uninvited ‘tenants’.

Landlords need to take steps to prevent squatters becoming a problem in their properties, firstly through common sense and through legal means and insurance protection.

First, the common sense methods have to be considered. Preventing unauthorised access to the property is obviously key. When the property is empty ensure that all windows are closed and, if lockable, locked. Do not leave keys in doors, even on the inside, especially when close to windows as they could smashed and reached through to gain access. As much as a landlord might want to keep a property ventilated by leaving windows even slightly open, it is an invitation to squatters and shouldn’t be risked.

Ensuring all external doors are well protected is also vital. That’s why all locks should be five lever mortice locks and not low quality rim latches which are easily broken by determined squatters.

With your property as secure as possible it is important to not leave open invitations to squatters in the form obvious signs that the property is unoccupied. Therefore weekly inspections of the property are a good idea to give the impression that there is often someone in and around the property.

This will also give the landlord a good opportunity to remove those signs of unoccupancy like build up of junk mail and free newspapers.

Now landlords need to look at their insurance policies. If they don’t cover against malicious damage then that’s the first thing that needs to be changed, and it needs to be clarified whether or not this will include damage caused by squatters.

It also needs to be checked whether or not the policy applies during periods of extended unoccupancy.

With these points clarified landlords are at least in a position where they are covered for damage and for costs incurred in regaining possession of their property from squatters. It is highly unlikely they will be covered for loss of rent during these periods, however.

Seeking independent professional advice before making decisions on property and liability insurance is a advisable. Asking insurance brokers what experience they have in residential or commercial property insurance is a good idea.

Speaking to a letting agent with experience in dealing with squatters is another good idea. Good letting agents will be able to advise you on insurance brokers to talk to, security and how to avoid void periods where there are no tenants, thus reducing the risk of attracting squatters to a property.

While being a landlord can be a lucrative business to be in, providing good income and investment values, covering one’s self against as many possible issues as possible is very important.

Author Bio: Ian Grainger is writing on behalf of Shepherd Gilmour, letting agents in Manchester.

Category: Real Estate
Keywords: Property insurance, squatters, letting agents, void periods