I inherited some problem tenants who couldn’t pay rent for months and were hostile in my recently purchased fourplex. I had dreaded having to undergo a lengthy and costly eviction process. But I offered $200 cash for keys and they are voluntarily gone leaving the property in a clean condition today. I’m so relieved.
As a landlord, it’s better to swallow your pride and settle for a small loss than try to go through an ugly eviction process for weeks or months and end up losing thousands of dollars on legal fees, lost rent and rehab fees.
@Jinhee Park great work! Make sure you have the tenants sign the proper legal documents turning over possession of the unit to you and that they hand you the keys before you give them the cash!
Dealing with problem tenants is what scares so many people away from this business. As you demonstrated, with proper education it is not too difficult to deal with these types of folks. I just went through this last year with a lengthy eviction at one of my value add deals in Berwyn, IL, and the unit has long been renovated and rented out for top dollar.
"As a landlord, it’s better to swallow your pride and settle for a small loss"
In rare situations this may sometimes be the case but keep in mind you are passing your problems along to the next unsuspecting landlord. You must make sure you are honest with any landlord that calls for a reference.Never allow your decisions to negatively impact other landlords. Evictions serve a very important purpose in our business. Your next tenant may be moving with a cash for keys bribe as well.
@Thomas S. thank you for your concern. I’m renovating my 4-plex into a medical AirBnB home so I will no longer have longterm lease tenants. That tenant i asked to move out was accepted by the previous owner of the property who didn’t do proper due diligence in screening the tenant before accepting them. So I’m doing my best to minimize the business expenses to achieve my business goals. Whoever takes that person as a tenant in their property will need to do a thorough screening before they decide on accepting them. It’s my property manager’s job to handle any references if they ask for any.