Have you ever self evicted a tenant by “ cash 4 keys” offer?

Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes

The community has offered amazing advice on my last 2 threads. I had to post again.

- Self eviction? Convincing someone to leave? Cash 4 keys offer? Changing locks after they haven’t even been living in the home for a certain period?

- experience with this?

- Before someone gets upset, lol, I am not saying I’m engaging in randomly KICKING people out of their residences. I go through the courts 99 percent of the time, unless they have abandoned my home..

- I just want to hear what others have experienced.

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

@Cameron Riley I apparently missed your other posts. I do not EVER do cash-for-keys. If you are know what you are doing, it is never needed and you can get them out legally. Even in liberal states like California where Landlords regularly say it takes six months to get rid of someone, I have found articles from attorneys that say it takes an average of 45 days to remove a non-paying tenant. I think people take longer because they don't know what they are doing.

Cash for keys is rewarding the tenant for bad behavior and setting them up to do it again to the next guy. It may cost you more time and money to formally evict but it's the right thing to do for the sake of Landlords everywhere and it actually punishes the tenant for their bad behavior.

I don't believe in paying a tenant to leave but I have offered to "forgive" money owed if they get out and keep me from having to go through the court system. For example, a Landlord contacted me yesterday because his tenant has regularly violated the lease with drugs, damage to the home, etc. My recommendation was to contact the tenant and tell him he needs to be out before February 1st. If he complies, the Landlord will use the deposit to cover the damages and ignore the rest. If he refuses to get out, then the Landlord will evict through the court. 99% of the time the tenant will leave and the deposit will cover the damages and cleaning.

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@Cameron Riley I apparently missed your other posts. I do not EVER do cash-for-keys. If you are know what you are doing, it is never needed and you can get them out legally. Even in liberal states like California where Landlords regularly say it takes six months to get rid of someone, I have found articles from attorneys that say it takes an average of 45 days to remove a non-paying tenant. I think people take longer because they don't know what they are doing.
Cash for keys is rewarding the tenant for bad behavior and setting them up to do it again to the next guy. It may cost you more time and money to formally evict but it's the right thing to do for the sake of Landlords everywhere and it actually punishes the tenant for their bad behavior.
I don't believe in paying a tenant to leave but I have offered to "forgive" money owed if they get out and keep me from having to go through the court system. For example, a Landlord contacted me yesterday because his tenant has regularly violated the lease with drugs, damage to the home, etc. My recommendation was to contact the tenant and tell him he needs to be out before February 1st. If he complies, the Landlord will use the deposit to cover the damages and ignore the rest. If he refuses to get out, then the Landlord will evict through the court. 99% of the time the tenant will leave and the deposit will cover the damages and cleaning.
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Andrew B.
Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
7y
I agree with what Nathan says above. Only thing I want to add, is most states have laws that refer to "abandonment" of a property. If you want to change the locks on a property where you suspect the tenant is no longer there, you need to follow those laws. Every state may have different views on an abandonded property.
1 Reply
Justin Kane
Specialist · San Antonio, TX · Member since 2015 · 909 posts · 297 votes
7y
45 days is avg out for eviction process but the avg cost is 1k$ so I would disagree with @Nathan Gesner (sorry nathan) we have effectively used our cash for keys offer successfully half a dozen times with one case being they never cashed the check.. so I would give them 10 days to get out and up to 500$ if they left the property in good condition (10days better than 45 and 500 better than 750 - 1250$) I would NOT recommend evicting yourself as having and experienced attorney on your side and in front a judge is best.
I would also NOT advise you to do lock out as in most states even arizona and texas.. you can not do that UNLESS its commercial, which brings me to my next point, in our apartment complexes we DO lockout and take TVs Xboxs etc as collateral if they dont pay and then I have my Property Manager do the eviction process which judge ALWAYS has sided with us as commercial is more forgiving and cheaper on evictions so I NEVER do cash for keys on my commercial MF
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@Justin Kane there's always an exception to every rule. As long as people know what they are doing, a cash-for-keys scenario could be beneficial to the Landlord. My problem is that people jump to cash-for-keys immediately, usually because they have no idea what to do and they've dug themselves into a really deep hole and already lost thousands. It's amazing how many people are months behind on rent, thousands in damages, and the Landlord still doesn't even know what the steps are for eviction.
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Justin Kane
Specialist · San Antonio, TX · Member since 2015 · 909 posts · 297 votes
7y
@Nathan Gesner true, hopefully people on BP reading threads like this one are more educated and proactive though ;)
1 Reply
Matthew McGuire
Realtor · Androscoggin County, ME · Member since 2018 · 12 posts · 6 votes
7y
We get clients who want to sell their occupied rental units with less-than-cooperative tenants. Cash for keys has been a godsend for getting tenants out on short notice to comply with a P&S asking for vacant units. We have a formed signed and the locks changed on the spot. It is usually cheaper (and quicker) than paying a lawyer to service the eviction process.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
I would never bribe any tenant to leave. It is a form of extorsion that many tenants are using now to extract money from landlords for their bad behaviour. In addition, although most landlords could care less about other landlords, I am a firm believer in getting evictions on record for others to see and be aware of. My reputation is too valuable to me to ever allow word to pass through the tenant community that I am a soft touch.
Would I bribe tenants for unacceptable behaviour or pay extorsion demands.....absolutely not, never, not in my life time. I hope I never end up with a tenant that has had a landlord that would have such little regard for other landlords.
If you are that type of landlord a word of advice. Do not ever offer a bribe until after you have filed the eviction notice.
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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Cash for keys is like giving your dog a T -bone steak after it craps on the living room carpet
11 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
@Nathan Gesner
It's amazing how many people are months behind on rent,
Yep this forum is a very clear indication that most do not ever bother to learn the regulations and process as part of beginning a business. They see no reason to learn anything. Buy a property, find a applicant with a heart beat, get rich. What could be simpler.
Landlord tenant regulations, I don't need no stinking regulations.
Personally I am a strong supporter of landlord licencing requiring class training for all aspiring investors prior to being allow to have tenants. If you do not know the rules and how to properly operate the business you should never be allowed to have any contact with tenants.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@Justin Kane Unfortunately, I've been on these boards for many years and am constantly fighting against the cash-for-keys crowd, even from "educated and proactive" members.
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Cameron Riley
OP
Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes
7y
@Dennis M.
My thoughts exactly! Lol
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
"Cash for keys is like giving your dog a T -bone steak after it craps on the living room carpet"
And, like a dog, what do tenants learn from landlords that reward bad behaviour.....they will crap on their next landlord.
1 Reply
Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Cameron Riley. Why would I offer money to a tenant I am evicting? That never made sense to me. Maybe it would make sense if it took 6 months to evict but that’s not the case where I invest
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Cameron Riley
OP
Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes
7y
@Caleb Heimsoth
Fair enough!
Have you Always done it through the courts or have you ever carried out a self eviction?
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Cameron Riley
OP
Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes
7y
@Thomas S.
Very true!
Have you ever performed self evictions?
Changing locks, etc... notices.. etc
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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
Originally posted by @Cameron Riley:

@Caleb Heimsoth
Fair enough!
Have you Always done it through the courts or have you ever carried out a self eviction?
My property manager would do it.
1 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
in some states like the people’s republic of California you would likely see this model often because it’s extremely tenant friendly there . Your chances of a fair and quick eviction are next to zero . The courts will allow scum bags to take over your home and the landlord often will be forced to wait several months before they can remove a non paying tenant . In this case it’s cheaper to pay out to soften the hit to your business because unfortunately 1,000 cash is cheaper than 6 months no rent and 1500 in eviction court . I would still not do it out if principle if I could help it ... but then again I’d never park my money in a place like New Jersey or commifornia
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Christopher Garlick
Fullerton, CA · Member since 2019 · 2 posts · 4 votes
7y
@Cameron Riley I was a tenant and was offered a cash for keys offer... our owner was foreclosed on and the bank offered us cash for keys paid us $5k and we took it
1 Reply
Jared Braun
Wilmington, NC · Member since 2018 · 10 posts · 2 votes
7y
Originally posted by @Christopher Garlick:

@Cameron Riley I was a tenant and was offered a cash for keys offer... our owner was foreclosed on and the bank offered us cash for keys paid us $5k and we took it
$5k for keys, yeah I’d take it too lol. I guess it’d be a financial decision for me if I was the landlord. I guess I’d figure out about how much it’d cost to go to court and lost income and offer a bit less then that to make it worth it for me.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
@Cameron Riley
"Have you ever performed self evictions?"
I have been involved in numerous evictions. I handle them myself, no lawyers required although the tenants are always provided welfare lawyers.
Like CA our system here is extremely tenant friendly. Aside from non payment of rent evictions are nearly impossible. I refuse to allow bad tenants to be rewarded for their behaviour regardless.
In our jurisdiction court is the last resort and for that reason it is preferable that more creative measures be implemented to resolve problems. I "persuade" tenants to leave voluntarily in most situations.
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Daniel Broward
Member since 2019 · 4 posts · 1 vote
7y
I would NOT recommend doing this. In Florida, evictions are really not so hard and not a big deal to get done. I'd rather wait the extra few weeks and maintain a solid rep.
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CJ Hamlin
Developer · FL · Member since 2018 · 26 posts · 16 votes
7y
Don't do it. Cash for keys is a very "shaky" area.
For me, most of my properties are in the same state region. My name is on it.
FYI - There were 10,264 evictions in Philadelphia in 2016. That amounts to 28.12 households evicted every day. 3.48 in 100 renter homes are evicted each year.
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Lana Lee
Philadelphia, PA · Member since 2017 · 364 posts · 109 votes
7y
Originally posted by @Cameron Riley:

The community has offered amazing advice on my last 2 threads. I had to post again.
- Self eviction? Convincing someone to leave? Cash 4 keys offer? Changing locks after they haven’t even been living in the home for a certain period?
- experience with this?
- Before someone gets upset, lol, I am not saying I’m engaging in randomly KICKING people out of their residences. I go through the courts 99 percent of the time, unless they have abandoned my home..
- I just want to hear what others have experienced.
I have already stated my opinion about cash for keys. I think we as landlords are doing disservice to each other using that "strategy". Not only it doesn't leave any negative records on their credit, they lived for free for couple of months in your house and now they are walking away with pocket full of your cash yet to another unfortunate landlord. This has to stop!!!
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Cameron Riley
OP
Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes
7y
@Christopher Garlick
Dang, my 5k is a super super solid offer! Wow! I’m glad it helped you guys out major!
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Cameron Riley
OP
Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes
7y
@Thomas S.
What are some of the creative measures?(:
Also, what state? Thanks again Thomas! 🏡💰
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