In cities with very pro-tenant leanings, eviction is long, expensive, and near impossible (especially in DC). If I were needing to change a tenant on a month to month lease, what would be a reasonable amount to offer as Cash for Keys (assuming a high cost area like DC)?
Also, how does the transaction take place? Do you offer cash once they move out? Half cash at agreement, the other half paid at move out? I’d value any input. Thanks!
Not yet - this is for a potential deal. 4-plex. Current tenants living in units that are currently getting ~2500 a month on month to month lease that haven’t been updated in years. The current approved rent for each units is $5500. Lots of incentive for them to move out asap
Although each municipality HA runs their shop differently, I am pretty sure if you give proper notice to vacate and they do not comply, they can lose their voucher.
@Jonny R. Personally I would not offer a month-to-month Section 8 tenant cash for keys. It shouldn't be necessary. However, if you feel it is and you end up going through with it, definitely don't pay half up front and half at move out. They may end up just keeping the half you give them and not moving. With cash for keys you should only pay once they're completely out and have handed you the keys with the property left in undamaged/broom swept condition.
Thanks all. The concern on my end is the heavily tenant friendly ethos of DC. I’ve heard people not offering cash and there is then a refusal to leave followed by months of litigation. If I proceed with the acquisition, I’d like to avoid a lengthy dispute with a disgruntled tenant who has the city on their side.
What about hiring a couple of big dudes to toss out their belongings if they refuse to leave? Just kidding... (sort of).