Any success with cash for keys?

Question

Has anyone had success with cash for keys? How much did you have to offer?

Brad Jacobson · Answer

Yes.  Cash for keys is one of my favorite land-lording strategies.

A eviction usually costs $2,000 or more so I begin by offering about half of that.  Last time I did cash for keys, I offered $800 and it worked.

I recommend being pretty firm.  With the properties I manage, I'm usually a fairly chill landlord (my goal is kind but firm on rules) but with cash for keys, you have to really harp on the fact they can walk with this money or they will be greeted by an officer next week who will be much less kind.

Good luck!

Marcus Auerbach · Answer

Last one I did was actually about $1,200 - I bought 4 plane tickets from Milwaukee to Atlanta. In return I got the house back in a week, squeaky clean and a heartfelt email from the tenant.

Could have gone the eviction route, which takes time and costs money (I don't have time to do that myself) and then you may get a trashed house back.

Both lost jobs within 2 months, burnt through savings and just wanted to get back to their family in Atlanta. Glad I asked them what's going on..

John Underwood · Answer

Yes.

I paid about $750 last time I used it.

For a rental I just evict. It only cost me $40 and 3 weeks in SC to get a tenant out.

Nathan Gesner · Answer

Cash for keys is an awful technique unless you're in an area that is anti-Landlord. I can't imagine it's needed in North Carolina, South Carolina, Florida, Utah, or most other states except for rare occasions. If manage 400 rentals and have never paid a tenant to leave. If you have fair laws, solid policies and procedures, and your courts are open for business, you should never have to pay a tenant to leave and hoist them on another unsuspecting Landlord.

Jeff Joachim · Answer

@Maranda Tucker , I did cash for keys several times here in Orlando, FL when I used to purchase properties on the auction. It might not be right for every situation, but it worked for me. Basically, I take a compassionate "I understand things happen approach" and let them know I'm offering them a lifeline. I would start with $500 if they could vacate within 30 days, and $1k if they could do it in 2 weeks. The rule is that while they are in the process of vacating, they need to allow me to get access to the property to conduct any showings, get repair estimates, etc. In addition, they have to ensure the property completely empty and swept clean when they vacate in order to receive the funds. I once had a house full of hoarders that filled up an entire 30 yard dumpster for $1,000.

Best of luck!

Linda S. · Answer

@Maranda Tucker,

If you're kicking someone out, they will need the deposit and the first month of rent at the next place.    Giving them cash to leave helps push them along.

I say ask them-- most of the time their number will be smaller than yours.       If I were to start, I would suggest $500, and then they'll say $1500, and then you meet in the middle around $1,000.     Time is money, it's not a pretty process, and it burns a lot paying a bad tenant, but it's an option.

Ashley Herring · Answer

Cash for Keys is a great way to get the property back. What was always successful for me was to build the relationship with them during the tenancy and eviction process. My strategy was to always communicate with them and try to be helpful but firm and educate them through the process.

John Underwood · Answer

It was on a house that I bought at auction and old owner was still in house. I got her to sign a QC deed also.

Gregory Chadwell · Answer

It really goes against our principles but common sense wise it works in most cases.  The eviction court can be a nightmare taking another month or two with atty fees.  Ive done it once or twice and i've never collected a Judgement from a previous tenant.

Any success with cash for keys?

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