The Rise of Short-Term Rental Squatters: How Airbnb Hosts Are Dealing with the Issue

The rise of short-term rental squatting has become a national issue, with squatters targeting Airbnb properties in particular. While it is not illegal to remove a squatter from a short-term rental, waiting too long could result in a prolonged and costly battle over ownership. Recent cases in Nebraska, California, and North Carolina have shed light on this issue, bringing it into the national spotlight.

In response to these incidents, Airbnb has created a webpage titled “Things to consider before hosting monthly stays,” where they address the issue of squatters. They state that such situations are rare but assure hosts that they will work with them to resolve any problems with their guests. However, state and county laws vary, and homeowners often find themselves spending months or even years trying to evict these squatters and seek compensation for property damage.

Flash Shelton, who operates a business called “Squatter Hunters,” believes that Airbnb should take more responsibility in these situations. He argues that the company should be held accountable, just as Uber is responsible for accidents involving their drivers. Shelton believes that Airbnb should provide homeowners with more information about their guests, as they currently do not require any background checks.

The increase in short-term rental squatting has led to the development of squatter insurance plans by several insurance companies. Darren Pettyjohn, co-founder of Proper Insurance, explains that their policy covers attorney fees up to $10,000 and lost business revenue up to $20,000 if tenants stop paying rent. This coverage helps hosts continue making mortgage payments during disruptive squatter disputes.

Squatter Hunters, which may soon become a television show, has also started taking on Airbnb cases. According to Shelton, the rise in short-term rental squatters is due to word of mouth and publicity. He points out two mistakes that short-term property renters often make: agreeing to extra days outside of Airbnb’s rental system and letting their emotions cloud their business judgment. Shelton warns that squatters are manipulative and prey on people’s sympathies.

Overall, the issue of short-term rental squatting poses challenges for both homeowners and Airbnb. Homeowners must be vigilant and aware of their rights and the laws in their specific area. Airbnb should consider implementing stricter guest screening processes to prevent these incidents and provide better support to affected homeowners. Meanwhile, insurance companies are offering coverage to protect hosts from the financial repercussions of squatter disputes. By addressing these issues, homeowners can feel more secure in renting out their properties, and Airbnb can maintain its reputation as a trusted platform for short-term rentals.