Cash for Keys vs Eviction..

8 Replies

I notice on a lot of discussion threads owners/landlord offer the current occupant/tenant Cash for Keys when trying to sway an occupant to leave rather than eviction.

I am wondering if this is more popular in states which are not landlord friendly or takes forever or expensive to have someone evicted.

Originally posted by @Andrea M. :
I notice on a lot of discussion threads owners/landlord offer the current occupant/tenant Cash for Keys when trying to sway an occupant to leave rather than eviction.

I am wondering if this is more popular in states which are not landlord friendly or takes forever or expensive to have someone evicted.

In my state, evictions are fairly quick. Seven day notice when rent is late, a court date about two weeks later, and then they have ten days to pay or move. When I do cash for keys, it's in that ten day period. I already have a money judgment against them. Instead of paying the court hundreds of dollars to evict, I have offered the tenant $150-$200 to move out and clean the house. It's cheaper than hiring the court and the house comes back in nicer condition. Since I already have the money judgment, I then go after their state tax refund. They're usually not expecting this as they think everything is done when they exchange keys for cash. It sucks giving money to someone that owes you money, but you need to look at the bottom line.

Interesting...In my area my cost ranges from $100-$150 for filing all necessary paperwork with the courts & Sherriff service to serve the tenants and approximately 30-45 days until I get possession.

@Rob K. So, one's state tax refunds can be garnished? I'm curious to hear more details on this because some of the evicted tenants I had only had SS as their income, which can not be garnished. If I can get to their state tax refunds, that could be an avenue to pursue.

This is interesting. My tenants (that I am currently evicting) have not left yet. I filed for the eviction back on Feb. 25 I am currently waiting (about 3 weeks, maybe sooner) for the Cook County Sheriff to come and put them out. I offered $250 back in February for them to be out by March, 15 They signed a document saying they agreed and as I said they are still in my building right now. Sometimes I wondered if I should have offered more or if this was their plan to stay as long as possible all along. There only income is disability from a government check. (can't garnish that). But I did think about if/when they get at tax refund (surely they will with all the kids they have). My lawyer told me you have to post the garnishment for an 8 week time period every instance to try to get anything. IF they get a refund. I may have to look into this next year.

Originally posted by @Nicole W.:
@Rob K So, one's state tax refunds can be garnished? I'm curious to hear more details on this because some of the evicted tenants I had only had SS as their income, which can not be garnished. If I can get to their state tax refunds, that could be an avenue to pursue.

If they only have SS as their income, I highly doubt they would have any refund.

@Rob K.

I don't know about that. They might still be able to claim however many kids they may have.

We offered cash for keys once, when the tenant lost her rental assistance. She was a good tenant but when she got a job, as required, her rental assistance ended but her job didn't pay enough to cover the rent. She didn't want to leave, but said a local charity would help her if she could prove she was being evicted. We filed the eviction, she took the paperwork to the charity, who then said they had no funds available.

The tenant was obviously very upset and didn't want to leave, but we offered the cash because there was no way she could pay the rent going forward and neither of us wanted to go the eviction route. In NJ, an eviction for non payment can take up to 6 weeks, in FL about one month if the tenant doesn't appeal.

Originally posted by @Nicole W.:
@Rob K. So, one's state tax refunds can be garnished? I'm curious to hear more details on this because some of the evicted tenants I had only had SS as their income, which can not be garnished. If I can get to their state tax refunds, that could be an avenue to pursue.

Being able to garnish a state tax refund is something that I believe is state specific.

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