19 Feb Cash for Keys: Why it May be a Better Alternative to Eviction

Keys on a counter, representing a successful cash for keys deal.

As a landlord, dealing with a problem tenant can be stressful and time-consuming. Evicting a tenant is a difficult and expensive process that can take months, leaving the property owner with lost income and legal fees. An alternative to eviction is the use of a “cash for keys” deal, in which the landlord offers the tenant a sum of money to voluntarily move out of the rental property. In this post, we’ll discuss the benefits of cash for keys and provide advice on how to properly execute this alternative to eviction.

The Right Amount for Cash for Keys

The amount of money offered for a cash for keys deal depends on the rental rate and the specific circumstances of the tenant. Typically, a cash for keys deal offers one month’s rent or less. For example, if the monthly rent is $1,500, a cash for keys offer of $1,000 may be appropriate. The amount offered should be enough to incentivize the tenant to leave voluntarily, but not so much that it is financially burdensome for the landlord.

Timing of Cash for Keys Payment

The timing of the cash for keys payment is an important consideration. It is generally recommended to pay the money after the tenant has completely vacated the property, as this provides an incentive for the tenant to leave the property in good condition. Paying the money before the tenant moves out could result in the tenant damaging the property, as they have less of an incentive to leave it in good condition.

Expiration or Decrease in Offering

It’s important to include an expiration date in the cash for keys offer. This creates a sense of urgency for the tenant to move out quickly. Additionally, the offer should decrease over time if the tenant fails to move out by the agreed-upon date. This can incentivize the tenant to move out on time and avoid any further financial penalties.

In conclusion, cash for keys can be an effective alternative to eviction that benefits both landlords and tenants. By offering a fair and appropriate amount of money, timing the payment correctly, and including an expiration or decrease in the offer, landlords can successfully incentivize tenants to vacate the property without the stress and expense of eviction.