Why to Consider Cash for Keys
You have a tenant who is nothing but trouble and you need to get them out; it’s bound to happen to any property owner/manager. Most owners are familiar with the process of eviction and the legal aspects that come along with it. What if there was actually a less intensive, more viable of an option? Cash for Keys may be the alternative you are looking for.
What is it?
Basically, Cash for Keys is a where the tenant is paid to leave so that the possession of the property goes back to the owner/landlord. This has been a strategy used by landlords, banks, and investors for many years. Cash for Keys helps owners vacate nightmare tenants, or so they can vacate the property so they can redevelop it.
Why to Use Cash for Keys
Here’s a few reasons as to why Cash for Keys would sound appealing towards a property owner/landlord:
- Getting rid of nightmare tenants for cheaper and faster than eviction
- Vacate tenants in a property that you want to renovate or redevelop
- Faster way of getting rid of squatters
- Vacate a property you bought at a tax auction, foreclosure, etc.
This strategy is faster than getting an eviction, and could result in a safer and cheaper alternative. If a tenant refuses the Cash for Keys agreement, make sure to emphasize that you are going to evict them. If they so happen to be warranted, you can also sue them in small claims court for any missed payments, property damages, etc.
How to Make a Cash for Keys Option Work
Before you head down the Cash for Keys route, send your current tenants an eviction notice first, or include the notice with your Cash for Keys offer.
If the client receives both, then they will begin to see that it is an important situation and you as a landlord or owner is serious. Your tenants will be more inclined to be calm about the situation and in return be more accepting of the offer if you stay personable and rational.
If your tenants agree to your Cash for Keys offer, get together a written agreement for both parties to sign. Make sure to include an agreeable amount of money, and the day for the tenants to move out. This agreement should also include any expectations or requirements you have prior to the tenants actually vacating the property. You should provide any money upfront and only disclose those funds if they meet your terms. Make sure to emphasize that if the terms in the agreement are not met, your tenants will be evicted.
Make sure to be mindful of the fact that the Cash for Keys option is in your best interest as a property owner/landlord. More than likely, your tenant hasn’t been the best to deal with and you really just want them out. Keep negotiations reasonable just so you can make the best of a terrible situation and keep things moving.
Should You Cash for Keys?
Landlords and property owners definitely do not enjoy the pain of getting rid of terrible tenants, but a Cash for Keys option could be the easiest way to take care of the whole vacating process. It is a faster, cheaper, and easier way to get your property back and start renting again. Yes, it does sound like you’re rewarding a tenant for bad behavior, but in reality, it is definitely a less complicated process than evicting them.