How do you price a "cash for keys" offer?

Question

I am interested to know the methods some of you use to determine a fair "Cash for Keys" offer. A month's rent? More? Less?

Nathan Gesner · Answer

I'm not trying to insult you. Cash-for-keys should be a last option, not a first option.

The tenant has been there for 12 years so I'm assuming their rent is well below market and they're probably on a month-to-month lease, or no lease at all. Give them the required notice to vacate. Most renters will comply. If they push back and insist on staying, tell them (in writing) that they have one week to pass your screening and sign a new lease with the market rent rate and a security deposit to match. That will scare off another chunk. If they refuse those options, start the eviction process. The overwhelming majority of fighters will give up once they realize you're serious.

In my experience, you can get rid of about 96% of renters by following those simple steps. You shouldn't consider cash-for-keys until you've at least made an attempt.

Cameron Tope · Answer

I'm with @Nathan G.. I have never given cash for keys and don't plan to start.

If you find yourself having to do cash for keys frequently then you may need to tighten up your leasing qualifications.

Nathan Gesner · Answer

I don't offer cash for keys. I manage 350 rentals and have never, ever paid a tenant to leave.

Like @Stephen J Davis, I have offered to refund the deposit the same day they move out without requiring cleaning but still holding them accountable for damages. I can't remember ever losing more than $500 and it was worth it to get them out.

Debbie J. Skora · Answer

That's nice that y'all feel that only a less-than capable landlord offers cash for keys, but in the real world, it's frequently a thing for various reasons. I am buying a property with a 12-year tenant and would rather have them leave on their own accord than have to take them to court. They are month to month, but that doesn't mean they will be willing to leave just for the asking.

Stephen J Davis · Answer

I assume you just want this tenant gone. I offer them their entire security deposit back if they move out quickly and leave the place just like I gave it to them. I've never offered anything more.

How do you price a "cash for keys" offer?

How do you price a "cash for keys" offer?

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