Despite the demand for housing continuing to climb across Arizona, over 30,000 housing units currently sit vacant. Increasingly, this is forcing property owners across the state to face a difficult legal reality: squatters. Whether it's someone living in an abandoned home or setting up camp on private land, the legal lines can quickly blur - especially in Arizona, where adverse possession law still applies under certain conditions.

If you're a property owner in Arizona, understanding Arizona squatters rights laws is crucial to protecting your real estate. Of course, true legal ownership can't be gained overnight, but Arizona law does allow a squatter to eventually claim legal title to real property through a specific, long-term process. Crucially, if you’re not paying attention, you could risk losing your property rights altogether. 

With this in mind, this guide breaks down the squatting laws that currently exist in Arizona, how state law treats unauthorized occupants, and what steps you can take to enforce your rights - before someone else tries to take them from you. 

What Steps Can Property Owners Take to Remove Squatters in Arizona? 

Picture the scene: You arrive at your property and find someone living there who should not be. What then? Well, Arizona law gives you the right to act, but you must do so legally. Under Arizona squatters rights law, a squatter does not automatically gain rights just by being present. However, if you don’t respond in the right way, you could find yourself facing an adverse possession claim.  

As such, here’s how to proceed and cover yourself: 

Step 1: Determine Whether the Person Is a Lawful Tenant 

Before you decide to begin evicting the person, you need to determine whether they’re a lawful tenant…or not. You can’t simply dismiss their right to be there, as there may have been a verbal agreement made (even if it’s informal) that protects them. Knowing where you stand is vital. 

Step 2: Issue a Formal Notice 

If you discover that the occupant is not a tenant, it’s time to serve a written notice to vacate. This notice signals your intention to take back your property and gives the squatter the opportunity to leave voluntarily. In Arizona, they typically get at least 5 days’ notice to do so. 

Step 3: File a Forcible Detainer 

If the squatter does not take this chance and refuses to leave, you must then file a forcible detainer in court. This process allows a judge to formally order the squatter’s removal. You’ll need to provide proof of ownership, documentation of the notice you provided, and any interactions had with the squatter. 

Step 4: Involve Law Enforcement 

Once a judgment is entered, law enforcement (typically through a sheriff’s deputy) will carry out the eviction if the individual still refuses to leave. What you shouldn’t do is take matters into your own hands (e.g. changing locks or removing belongings) as it’s illegal and could backfire legally. 

Step 5: Secure the Property 

After the squatter is removed, it’s prudent to properly secure the premises to prevent re-entry. That means blocking entrances, changing locks, and posting signage. You could also consider hiring a property management firm to oversee future security for extra peace of mind. 

Pro Tip: If you’re interested in finding out more about long-term strategies for success, see our guide on how to manage a rental property effectively. 

Related: Arizona Evictions | Laws and Protections

What Are the Potential Risks of Allowing Squatters to Remain on a Property in Arizona? 

Taking action when you find a squatter on your property is a non-negotiable. Why? Even if you leave them undisturbed temporarily, it can lead to serious consequences. You see, under Arizona law, doing nothing can create the appearance of consent, potentially allowing your squatter to begin building an adverse possession claim.  

Unsurprisingly, most of these types of claims don’t succeed, but the financial cost of getting legal advice to defend your ownership rights and force an eviction can run into thousands of dollars. However, that’s not the only risk you’ll face. 

  • Risk: Losing Legal Ownership - If a squatter meets all the criteria under adverse possession laws, including exclusive possession, hostile possession, and 10 years of uninterrupted use, they may eventually be able to apply for legal title. While rare, these cases do sometimes happen, particularly when the property owner is absent or unaware of the situation. 
  • Risk: Property Damage and Liability - If you’re not watching closely, your real property can be damaged by squatters in a variety of ways (e.g. neglect, misuse, or criminal activity). As the legal owner, you may still be held liable for injuries that occur on the premises — even if you weren’t aware the squatter was there. 
  • Risk: An Inability to Sell the Property - If a potential squatter happens to be occupying land or a building you plan to sell, their presence can stop you in your tracks. It can also reduce your asset’s market value and scare off buyers.  
  • Risk: Tax and Regulatory Trouble - In some cases, squatters may attempt to pay property taxes as part of their adverse possession strategy. If these payments go uncontested and the property owner hasn’t kept up with taxes themselves, it could further muddy the waters of legal ownership under state law. 

Pro tip: Don’t wait. Failing to act fast can put your property rights, finances, and reputation as a real estate investor at risk. Document everything and move quickly. 

Related: California Landlord Tenant Rental Laws | Know Your Rights

What Are the Financial Responsibilities of Squatters in Arizona? 

While squatters in Arizona are not recognized as legal tenants, the mere fact that they’re present on your property can still have financial implications for you. So, what financial responsibilities might squatters try to take on, and do any of them actually hold up legally? 

Property Taxes and Adverse Possession 

One of the key requirements under Arizona’s adverse possession laws is the potential payment of property taxes. As such, if a squatter has occupied land or a building for a long time (typically at least 10 years) and has been paying property tax during that time, it may contribute to a stronger claim of legal ownership. However, this alone is not enough, as all other adverse possession criteria must also be met, including exclusive possession and hostile possession of the property. 

Maintenance and Utility Costs 

While it’s not legally mandated, some squatters choose to take on utility payments, minor repairs, or general upkeep in an attempt to mimic the responsibilities of a lawful tenant. These moves aren’t often altruistic, rather, they’re made to show a pattern of ownership and possession. That said, in reality, none of these actions provide legal protection unless the squatter meets all conditions set out in state law. 

Responsibility for Damages 

A squatter who causes damage to a property or alters it in ways that violate code can sometimes be held financially liable, but only if the property owner can prove that damage happened and that the individual acted unlawfully. That’s why legal action should always be accompanied by strong documentation and photographic evidence. 

Squatters Don’t Have to Pay Rent 

Unless a formal lease exists, Arizona law does not require squatters to pay rent or back payments to the property owner. That’s what makes early intervention so critical because without a signed rental lease agreement, your legal leverage becomes more limited. 

Pro Tip: Make sure your rental lease agreements are airtight and clearly define occupancy terms. Check out our blog on how to create a stronger rental lease agreement that protects your interests. 

Related: New Mexico Evictions | Laws and Protections

TenantCloud – Making Life Easier for Landlords Across Arizona  

Squatters aren’t just an inconvenience. They can tie up your property, drain your time, and trigger costly legal battles - especially if you don’t act fast. In Arizona, where adverse possession laws are still on the books, even a short delay can work against you. That’s why it’s essential to stay ahead of the game by knowing your rights, documenting everything, and moving quickly when someone occupies your property without permission. 

Taking early legal action doesn’t just protect your property - it also helps you avoid drawn-out court cases, unnecessary stress, and potential financial loss. The more informed and proactive you are, the easier it is to shut down squatting attempts before they become serious problems. 

Something else that can protect you and make the whole job of being a landlord easier in Arizona is TenantCloud - the feature-rich platform built for modern property management professionals. From tenant screening to automated rent collection, our tools help you take care of the legwork of being a landlord, giving you more time to focus on growing your business. 

So, if you’re looking for an easier, less stressful way to manage your rental property, take a moment or two to explore our website and see how TenantCloud can help you work smarter, not harder. Alternatively, if you’d like to speak with a member of our team about your unique needs, call 1-737-300-9331 today.