The World Cup Rental Surge Spawns Fears of Squatter Scams

18 hours ago 2

The 2026 FIFA World Cup, which starts June 11 and ends July 19, is poised to be "the largest sporting event in history,” according to the U.S. Embassy in Luxembourg.

“As many as 10 million visitors will head to 11 U.S. cities this summer," with World Cup matches taking place across the Canada, Mexico, and the U.S.

Like any major sports event, the tournament is an economic boon for host cities and also represents a great opportunity for owners of short-term rentals.

However, local officials are warning hosts, especially first-timers, of a rare but serious threat: sophisticated squatter scams.

Issues tied to squatters in short-term rentals

Local law enforcement officials fear that the relaxation of short-term rental rules in certain cities could lead to squatting issues.

For instance, the Kansas City Police recently issued an advisory stating that, in the state, “a guest can gain tenant rights after 30 days, shifting the situation from a simple removal to a formal eviction process,” according to KSNT.com.

Other host cities and states have similar laws, including New York and New Jersey, which is home to MetLife Stadium, where the final game will be played in July.

Since the World Cup lasts more than one month, scammers could attempt to take advantage of this.

“At that point, it’s no longer a police matter. You’re going through the courts, and that can take months,” Yosi Yahoudai, co-founder and managing partner at J&Y Law, explains.

Alex Freeburg, founder and attorney at Freeburg Law, adds that once someone has a booking confirmation, they get into the property legally and stay long enough to meet that threshold in a given state, so you’re no longer dealing with a trespasser.

“And that loophole is what the professional squatters, if you can call them that, are exploiting," he says.

"Because they’re not breaking in, they’re not damaging the property. They’re using legitimate bookings to get inside, and then relying on the fact that most homeowners don’t understand where that legal line is,” he adds.

Fortunately, homeowners can take several steps to protect themselves.

First, using verified platforms for all communications and payments is key. As Freeburg notes, many homeowners want to step outside the booking platform to save money, or they’re in such a rush to have someone book the place that they’re too lenient and don’t vet the person thoroughly.

“And in that bargain to save money, they end up losing an added layer of documentation and protection that can matter later if things hit the fan. Same with letting stays run too long. In a lot of states, that 28–30-day window is where the risk shifts; and once you’re past it, you can’t remove someone immediately," Freeburg said.

Cody Schuiteboer, president and CEO of Best Interest Financial, says the minute you allow someone to pay off-platform, two problems occur: Your insurance coverage with the platform expires immediately, and the guest now has an off-platform document proving you had some kind of agreement outside the terms of the booking.

“Anytime a guest asks you to pay outside the booking platform, it's red flag after red flag. They always ask that question for a bad reason,” he adds.

And of course, keep all conversations on the platform so there’s a clear record.

“Don’t move to WhatsApp just because it’s easier for them,” Yahoudai says.

The best way to "squatter-proof" your rental leases

Schuiteboer explains that listing your property for the World Cup rental season could yield a windfall in earnings, but it's a risk to your entire balance sheet if a renter occupies it and turns a short-term rental stay into a tenancy.

“The homeowners who succeed in this venture are the ones who see the property as the financial investment underneath, not just as a business,” he says. “One bad guest can wipe out three years' worth of mortgage payments, protect the underlying asset.”

Here are the best ways to avoid letting in a squatter ahead of time.

Always obtain a copy of a government-issued ID

David Metzger, a partner at Williams Teusink Law Firm and a legal expert on squatting issues, says this is required on most major booking platforms, offering another strong argument for using these platforms.

Ask for a security deposit

Require an upfront security deposit of $2,000-$5,000 from the platform for each rental.

“Squatters don't want to deal with paying upfront money to book,” Schuiteboer says. “And never take payment off of the platform itself—never. That's your biggest safety risk.”

Then, require a not-insignificant security deposit, as the upfront cost may deter a fraudster, he advises.

Cap stays

Capping stays at 20 days, so you leave yourself a buffer in case anything goes wrong, which could be useful as well, according to Yahoudai.

JJ Hornig, managing partner of Roxy Rentals, a luxury short- and mid-term rental company, says they are intentional with how they structure rentals.

“If it’s not a returning guest, we’ll keep reservations at 28 days, rather than putting together a formal lease, and then create a second reservation if they want to extend. That helps avoid unintentionally crossing into tenant territory,” Horning says.

Don’t handle the situation yourself

Yahoudai also recommends not trying to handle the situation yourself if something does go wrong. Changing locks or shutting off utilities can create more problems for you later on in court, even if you think you’re rightfully protecting your property.

“Follow the legal process, and if you’ve set things up properly on the front end, you give yourself a better chance to resolve it quickly,” Yahoudai adds.