Squatters in NYC: Post 2024 Legal Changes Every Real Estate Investor Must Know

Navigating the complexities of real estate investment in New York City requires staying informed about legal changes that can impact property ownership. One such area is squatters' rights, which is currently undergoing significant legislative revisions in 2025. Understanding these changes is crucial for protecting your investments and ensuring compliance with the law.​

Squatter vs. Trespasser: What’s the Difference?

• Trespasser: Someone who unlawfully enters or stays on property. Easily removed by law enforcement.

• Squatter: Someone who remains on property long-term, possibly under the radar, and can gain certain tenant-like protections over time.

Prior to 2024, once a squatter occupies a property for 30 days or more, they would be considered a legal occupant, making the eviction process longer and more complicated. As of April 2024, the Bill S8996 clarifies that a squatter is not a tenant for purposes of removal proceedings

Understanding Squatters' Rights in NYC

Squatters' rights, rooted in the legal doctrine of adverse possession, historically allowed individuals occupying a property without permission to gain legal ownership under certain conditions. In New York City, this typically required continuous, open, and notorious occupation for a period of 10 years.​ In Long Island, it requires 30 years.

Adverse Possession in New York State

Under New York law, a squatter may claim adverse possession if they meet all of these conditions for 10 consecutive years:

• Open and notorious (not hiding the occupation)

• Exclusive (no one else sharing the space)

• Hostile (without permission)

• Continuous use

While rare, adverse possession has been successfully claimed in NYC—especially with vacant lots or buildings left unattended for years.

Why This Matters to NYC Investors

Investors buying:

• Distressed or foreclosed properties

• Vacant buildings or lots

• Multifamily units left empty

...are at higher risk of encountering squatters—especially during construction delays or when waiting for permits.

Squatters can:

• Delay renovation or resale

• Lower the value of your property

• Cost thousands in legal fees and missed income

Legal Options for Property Owners

If you discover someone occupying your property:

1. Serve a Notice to Quit: A legal step before eviction proceedings.

2. File for eviction in Housing Court: You are still required to follow formal proceedings for eviction.

3. Avoid "self-help" evictions: Changing locks or shutting off utilities without court approval is illegal and could backfire.

   
   

2025 Legislative Changes Affecting Squatters' Rights

Recent legislative actions has potential to significantly alter the landscape of squatters' rights in New York:​

• Redefinition of "Tenant": The New York State Senate aims to pass Bill S8996, amending the Real Property Actions and Proceedings Law to clarify that squatters are not considered tenants. This change will prevent unauthorized occupants from claiming tenant protections.

• Immediate Legal Impact: Governor Kathy Hochul signed this amendment into law as part of the 2025 state budget, making it effective immediately. This move empowers property owners and law enforcement to address squatting incidents more directly.

• Tenancy Requirements: Increased push towards extending time period for tenancy rights from 30 days to 60 days, e.g. Bill S8995.

Implications for NYC Real Estate Investors

These legislative changes have several implications for property investors:​

• Enhanced Authority: Property owners now have clearer legal grounds to remove unauthorized occupants without the complexities of tenant eviction proceedings.​

• Law Enforcement Support: In the near future, police can intervene more readily in squatting cases, reducing the burden on housing courts and expediting the resolution process.​ (Bill A9772)

• Investor Confidence: These changes aim to bolster investor confidence by safeguarding property rights and reducing potential losses associated with squatting.​

Preventative Measures for Property Owners

To mitigate the risk of squatting:

• Regular Inspections: Frequently inspect vacant properties to ensure they remain unoccupied.​

• Secure Properties: Install robust locks, security systems, and consider boarding up entry points in unoccupied buildings.​

• Clear Signage: Post "No Trespassing" signs to deter unauthorized entry and establish legal grounds for removal.​ Take a picture & recording of such action as documentation should a squatter provide a fake lease.

• Prompt Action: If unauthorized occupation is detected, act swiftly by notifying law enforcement and initiating legal proceedings if necessary.​

Looking Past 2025

More adjustments to the laws will work their way through the government creating an easier process to remove squatters. In Q1 of 2025, many bills have been filed that aims to amend New York's squatters' rights laws, representing a significant shift in protecting property owners and investors. By understanding these changes and implementing proactive measures, NYC real estate investors can better safeguard their assets and navigate the legal landscape with confidence.​

Additional Resources

• New York State Senate Bill S2366

• Governor Hochul's Announcement on Anti-Squatter Law

• RPA 711 

• Squatters Rights

This blog post is provided for informational purposes only and should not be construed as financial, legal, or investment advice. While I am a licensed real estate professional in New York, I am not a financial advisor, attorney, or tax professional. Readers are strongly encouraged to consult with their own licensed attorney, CPA, or financial advisor before making any real estate investment decisions. All information is deemed reliable but not guaranteed and is subject to change based on market conditions, legal updates, or individual deal circumstances.