Office buildings

Squatters: the legal rights of commercial property owners

When squatting in residential buildings became a criminal offence in 2012,  commercial properties became targeted instead, says Martin Wilks, Commercial Underwriter and Solicitor at First Title Insurance plc.

In his guide for commercial property owners on squatters’ rights, Wilks advises that since the introduction of new legislation in 2012 in the form of Section 144 of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act, residential property owners are in a much better position than they were with regards to squatters, but the situation for owners of commercial property is worse.

He says:

“This is because the legislation does not extend to non-residential buildings, i.e. buildings not designed to be lived in. It follows therefore that squatting in offices, a public house, or a warehouse will not in itself be a crime. A landlord will therefore need to resort to civil law and obtain a court order to evict squatters from their commercial property. 

“There is evidence to suggest that the new legislation has simply shifted the problem on, with squatters now seeking out commercial buildings rather than face arrest for occupying a residential property. For example, since September 2012 office blocks, vacant pubs and empty bank branches have all been targeted and occupied. 

“For commercial landlords with empty property this is of considerable concern; they not only have to pay full business rates, but they also have to spend significant sums securing the property if they are unable to secure a tenancy. The alternative is to risk lengthy and costly legal proceedings to evict squatters.”

Wilks offers the following tips:

  • Ensure unoccupied buildings are secured and alarmed. Act quickly, for instance, following the expiry, surrender or forfeiture of a lease and the exit of a tenant;
     
  • Check on the property regularly to see if there are any signs of attempted entry;
     
  • Remove any articles of value internally and externally;
     
  • Check insurance details to see if cover is provided for intrusions and any other costs such as damage to the property. Consult with the insurer on the measures that should be taken - a risk assessment may detail requirements for a particular site, for example the removal of certain items or machinery;
     
  • Provide regular security patrols if necessary;
     
  • Turn off and disconnect utilities; and/or
     
  • Consider letting the property on a temporary trading basis or on short-term agreements, for example, for a period of six months.

 

For the full guidance click here.