Wall Street Landlords Struggle to Evict Atlanta’s Squatters

A surge in squatting activity is leaving institutional investors in residential real estate scrambling for solutions in Atlanta.

Property owners and managers in the Atlanta metro area report growing difficulties in removing squatters, or unauthorized occupants, from vacant rental homes, with evictions often taking several months due to legal and procedural delays, Bloomberg reported.

The National Rental Home Council estimates that roughly 1,200 homes in the area have had recent squatters, more than in any other city the organization tracks. The problem is of particular issue in Atlanta metro, where institutional landlords collectively own more than 72,000 homes in the area.

South Fulton Councilwoman Helen Z. Willis points to the area’s lack of affordable housing, which has caused homelessness to spike.

Residential rents in Atlanta jumped 34 percent, on average, since the beginning of the pandemic, surpassing the national rise of 29 percent, Bloomberg reported, citing Zillow data.

Major rental companies such as Starwood Capital Group, Amherst Group, and Cerberus Capital Management’s FirstKey Homes are among those dealing with squatters occupying dozens of their properties.

Evictions can take months, thanks to court backlogs. Landlords can also file intruder affidavits, which are processed more swiftly, but intruders can avoid immediate removal by filing a counter affidavit.

The pervasiveness of the issue has left Atlanta landlords searching for alternative strategies to prevent squatters from entering homes in the first place. Some companies, such as FirstKey Homes, have implemented technological solutions to address the issue.

FirstKey spokesman Alex Horwitz said the firm has introduced smart-home equipment and notification systems designed to monitor vacant properties.

Technology is the problem in some cases. For example, self-showing technology, which allows potential tenants to access homes using temporary codes, has become a tool for squatters to gain entry.

Landlords are facing thousands of dollars in lost rental income and property damage caused by squatters.

Atlanta property manager Tim Arko said it took him seven months and a lawsuit to evict squatters from a rental home near East Lake Golf Club. During that time, the property suffered extensive damage.

— Andrew Terrell