Friday, March 22, 2024

The "Squatter Hunter" Reveals How Capitalism Really Works

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The "Squatter Hunter" Reveals How Capitalism Really Works

Alexander Green, Chief Investment Strategist, The Oxford Club

Alexander Green

On October 12 of last year, the Los Angeles Times ran a story about Elizabeth Hirschhorn - the Airbnb "tenant from hell" - who lived rent-free for over 540 days.

She said she owed nothing because the unit did not have an occupancy permit. She also demanded $100,000 in relocation fees to leave.

The homeowner, Sascha Jovanovic, was unable to convince a judge or the city that she should be evicted.

How is this possible?

The city of Los Angeles has gone to great lengths to protect tenants.

This can be true even when the "tenant" never signed a lease, paid any rent or even received the property owner's permission to enter the dwelling.

Of course, when tenants won't pay the rent - and government makes it slow, costly and aggravating to move them out - homeowners do something entirely predictable.

They stop putting properties up for rent.

It may come as no surprise to learn that Los Angeles is struggling with a severe housing shortage.

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As Ronald Reagan famously replied when asked why he switched from the Democrat to the Republican party: "Because liberal solutions to problems don't work."

Capitalism, on the other hand, does.

Whenever someone wants or needs a product or service, enterprising individuals will devise a solution and knock themselves out to deliver it better, faster or cheaper.

Flash Shelton is a good example.

If you don't know Shelton, here is a recent story about him from the Los Angeles Times...

On a winter morning in Woodland Hills, the "Squatter Hunter" slowly approaches a posh two-story home dressed in all black, armed with a Glock 26 pistol, stun gun, pepper spray and baton. His body camera is on. His two-man squad lurks behind him.

They've spent four days in surveillance, learning the habits of the man squatting inside. They've waited for him to leave, but he never does. So they knock on the front door, and when the occupant opens it, they barge inside. 

Their plan: live with the squatter. Dirty the bathroom. Take the best spot on the couch. Commandeer the TV remote. Blast music. Drink his coffee. Eat his Cheetos. 

Out-squat him. And film it all for YouTube.

As the body camera footage shows, the team starts installing Ring cameras throughout the home to document every interaction. The Squatter Hunter, Flash Shelton, hands the man a lease with Shelton's name on it.

"You're an intruder in my house now," he says.

Shelton explains that the man is there illegally, and the team is not going anywhere until he leaves. The squatter was out before they could even share breakfast together. 

For homeowners in Southern California and beyond, run-ins with squatters can be a nightmare both emotionally and financially. For the Squatter Hunter, it's just another day on the job.

What started as a viral YouTube video has grown into a one-of-a-kind vigilante-style service, helping homeowners boot trespassers from their property. 

His motto: "If they can take a house, I can take a house."

Amazing, right?

Yet Shelton is not an uncaring man.

He grew up practically homeless. But he became a productive citizen.

He started working as a handyman at 16. He established a trade organization that lobbies for handyman rights.

He also worked as a bouncer, where he learned how to handle situations that can turn violent.

(He took the same de-escalation courses that police officers take.)

Now he hires himself out to homeowners who have squatters who refuse to vacate the premises.

(On his website, he poses in a black baseball cap emblazoned with the words "GET OUT.")

Property owners learn that evicting a squatter is an arduous process that can involve months of aggravation, numerous court appearances and tens of thousands of dollars in legal fees.

Yet Shelton - an exemplar of capitalism in action - came up with a creative solution.

He has homeowners sign a lease making him the official tenant of the home. This way, he can legally enter the property and persuade the squatter(s) to leave.

Shelton has a video posted on YouTube titled "How I Remove Squatters in Less Than a Day."

He now offers his services on squatterhunters.com - and has conducted hundreds of Zoom consultations with homeowners.

As the L.A. Times put it, "Business is booming."

That's what generally happens when government creates a problem and free enterprise delivers a solution.

Those who think capitalism is all about greed, selfishness and exploitation may be appalled by the Squatter Hunter and his services.

Others will be gratified to hear that some entrepreneur came up with a creative solution that saves customers time, money and frustration.

Some will call them renegades... or mavericks... or vigilantes.

But I just call them property owners. Or capitalists.

Good investing,

Alex

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