Understanding North Carolina Laws on Squatting in Multi-Family
Rental Properties

By: Heather Tabor – North Carolina Licensed Managing Attorney with Brownlee Whitlow & Praet, PLLC

      Squatting is a growing concern for housing providers and property managers, particularly in multi-family rental properties. When squatters occupy a property without the owner’s consent, it can lead to complex legal challenges, disrupt the
community, strain resources, and cause significant financial losses for housing providers. In North Carolina, squatting
intersects with several legal principles, including:

• • • • Tresspassing: A person’s unlawful entry into another’s property;
      • Holdover Tenancy: When a resident remains in a rental property after their lease has expired without the housing provider’s explicit permission; and 
      • Adverse Possession: A legal doctrine that allows a person to claim ownership of land if they occupy it
        openly, continuously, and without the owner’s permission for a specific period of time.

   For housing providers, knowing how to address squatters legally and efficiently is crucial to protecting their investments and maintaining a safe environment for their residents. This blog explores the legal framework surrounding squatting in
multi-family rental properties in North Carolina and provides property owners with the tools they need to navigate these situations.

    Squatting becomes particularly tricky in multi-family settings because these properties often have multiple access points
and a dynamic resident turnover, creating opportunities for unauthorized individuals to take advantage of vacant units. In multi-family rental properties, squatting situations often arise when unauthorized individuals: (1) Move into vacant units without a lease; (2) Remain in a unit after the leaseholder vacates; or (3) Occupy a property following a foreclosure or abandonment.

    The legal framework for dealing with squatters in North Carolina draws upon several statutes and legal doctrines. Understanding these laws is key to protecting property rights and resolving disputes effectively:

• • • Adverse Possession in North Carolina: Adverse possession is a legal doctrine that allows someone to claim
      ownership of a property if they occupy it for a certain period under specific conditions. In North Carolina, the general requirement for adverse possession is 20 years of continuous, open, and exclusive use of the property. While adverse possession may sound alarming, it is rarely applicable to multi-family rental properties. Units
      within these properties typically do not remain unoccupied for the 20-year statutory period, and housing
      providers often take proactive steps to remove unauthorized occupants before that time elapses.
    • Distinguishing Squatters from Residents: It’s crucial to understand the difference between squatters and residents
      in North Carolina. Residents have a legal agreement with the housing provider—typically a lease—that outlines
      both parties’ rights and responsibilities. Squatters, on the other hand, have no such agreement and no legal claim
      to occupy the property. However, disputes can arise when squatters attempt to claim rights. For instance, if an individual has resided in a unit for a significant period or if a squatter claims that rent has been accepted, they
      may argue that a landlord-tenant relationship exists. This underscores the importance of clear documentation, including lease agreements and records of payment, to refute such claims.
    • Criminal Trespass in North Carolina: Under N.C. Gen. Stat. § 14-159.12, squatting may constitute criminal trespass. Housing Providers can pursue criminal charges against squatters if they unlawfully enter or remain on the
      property without permission. However, criminal proceedings are not always the most efficient solution, as they
      can be time-consuming, require the cooperation of local law enforcement, and may not result in the immediate removal of the squatter.

     When faced with a squatter in a multi-family rental property, housing providers have several options for resolving the situation. It’s essential to follow legal procedures carefully to avoid potential liability or disputes.

• • • Serve a Notice of Trespass: The first step in addressing a squatter is to serve them with a formal notice of trespass. This notice informs the individual that they are occupying the property without permission and must leave by a specified date. In North Carolina, there are no statutory requirements for how this notice must be served to a squatter, but it’s best to document the delivery method for legal purposes.
    • File for Civil Trespass: If the squatter refuses to leave after receiving the notice, the landlord may file an action for Civil Trespass. During the Civil Trespass hearing, landlords must present evidence that the individual is occupying
      the property unlawfully. This may include:
      • Proof of ownership of the property.
      • Evidence that the squatter does not have a lease or rental agreement.
      • Documentation of prior attempts to remove the squatter, such as a Notice of Trespass.
    • Avoid “Self-Help” Remedies: Landlords should carefully weigh risks prior to taking actions to remove squatters through “self-help” measures, such as changing the locks, shutting off utilities, or forcibly removing the individual. These actions are against public policy in North Carolina and can expose landlords to legal liability.

     In response to the challenges posed by squatters, North Carolina lawmakers have introduced legislation aimed at
providing housing providers with more effective tools for addressing unauthorized occupants. House Bill 96 (Senate Bill 71), titled “Removal of Squatters from Private Property,” seeks to create an expedited process for property owners to remove unauthorized individuals from their properties. If enacted, this legislation would allow property owners, or their authorized agents, to swear an affidavit before the clerk of superior court requesting the removal of unauthorized occupants who have ignored demands to vacate.

Key provisions of the bill include:

• • • Eligibility Criteria: The property must be a residential dwelling or related property, and the unauthorized person must have no legal claim to occupy the property under a lease or other agreement. Notably, the bill excludes tenants holding over after a lease term has expired from its scope.
    • Law Enforcement Action: Upon receiving a sworn affidavit, law enforcement agencies would be required to
      remove the unauthorized person(s) from the property within 24 hours. The agency would not be liable for any
      loss or damage to personal property resulting from the removal.
    • Penalties for Wrongful Removal: Individuals wrongfully removed under this procedure could bring a civil action seeking recovery of possession, actual damages, statutory damages equal to three times the fair market rent of
      the residence, court costs, and reasonable attorney’s fees.

     House Bill 96 was introduced in February 2025, and passed the House in April 2025. The Bill has now been referred to the Senate Committee on Rules and Operations. Housing providers and property managers should monitor the progress of this legislation, as its enactment could significantly impact the procedures available for addressing squatters in North Carolina.

      Prevention is the best approach to dealing with squatters. Housing providers and property managers may take several proactive steps to reduce the risk of unauthorized occupants taking over their properties:

• • • Secure Vacant Units: Vacant units in multi-family properties are often prime targets for squatters. Housing
      providers should ensure these units are well-secured with high-quality locks, reinforced doors, and properly
      sealed windows. Installing security cameras in hallways, entryways, and other common areas may deter potential squatters and provide evidence in case of an incident.
    • Maintain an Active Presence: Frequent inspections of the property can help housing providers identify issues
      before they escalate. Regular visits to vacant units, common areas, and parking lots not only discourage squatters but also help ensure the property is well-maintained for existing residents.
    • Act Quickly on Unauthorized Occupants: The sooner a housing provider acts on signs of unauthorized occupancy, the easier it is to prevent squatters from establishing residency. North Carolina law, as well as pending legislation like House Bill 96, underscores the importance of prompt action in addressing squatting issues.
    • Build Strong Relationships with Local Law Enforcement: Fostering a relationship with local law enforcement can be beneficial when dealing with squatters. Police officers can assist in removing individuals in cases of clear trespassing.

     Squatting in multi-family rental properties is a challenging issue that requires housing providers and property managers
to stay informed and act decisively. In North Carolina, the interplay between squatting, trespassing, and tenancy law makes it critical for housing providers to understand their legal rights and responsibilities. While North Carolina’s current laws provide landlords with options for addressing squatters, pending legislation like House Bill 96 may introduce new, expedited procedures for removing squatters. Staying informed about these developments and maintaining proactive property management practices can help housing providers protect their investments and foster a safe, thriving community for
residents.

     
*The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information in this article is for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Viewers of this material should contact their attorney to obtain advice with respect to any particular legal matter. No viewer of this material should act or refrain from acting on the basis of information in this presentation without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this article does not create an attorney-client relationship between the reader and Brownlee Whitlow & Praet, PLLC or any contributing law firms. All liability with respect to actions taken or not taken based on the contents of this article are hereby expressly disclaimed.