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A tenant who falls behind on rent isn't a squatter they are still a tenant and normal procedures already allow for removing the tenant in a reasonable time frame. The issue that obtains some places is that courts are too poorly funded and over burdened to deal with issues in a timely fashion.
A squatter is someone who moves in without paying. This gets ugly when as above court issus applies and squatter situations get in line with normal eviction.
WA instituted an expedited process that allows for removal of folks who were never tenants with just police so this doesn't happen.
That is a smart solution to actual squatting fully funding whomever handles your eviction cases is another.
If you want to take it to the next level look at Finland who almost eliminated homelessness by housing people who are temporarily in a bad way and Europeans generally providing support for those with health problems.
People who fall behind usually aren't stealing from the landlord and celebrating they are usually falling into a financial hole and living every day in increasing stress as they scramble for a solution. Ask me how I know.
It's technically a tenancy dispute, but the actual problem is the same. Someone occupies a residence wothout permission. I agree providing tiny home style emergency housing is fine - there are plenty in my area and they are valuable for the community - but saddling landlords with higher risk results in worse rates (assuming no rent monopoly in the area) and agreements for the majority of tenants who are paying rent without issue.
The actual problem is not the same at all. The squatter is unambiguously committing a crime. Their willingness to commit a crime and inability to have their own home is a massive predictor of problems up to and including the total destruction of your property and its sufficiently black and white that local law enforcement given a proper law can act within the hour to evict and arrest someone who has no right to be where he is.
The tenant who is behind on rent is a situation fraught with complexity which should be handled by a judge so that everything can be heard. What's more having this whole process take at least several weeks is a good thing. I gives people time to come to a resolution to avoid eviction. To borrow money. To get paid and come up with the money. To make alternative housing plans. To make a plan with landlord to pay over time. This keeps families from being put out on the street promotes social stability and well-being. Having matters handled lawfully and carefully is an acceptable burden.
It also doesn't increase rent because the small downside risk doesn't magically make your property more valuable.