How can you evict tenants without the court system?

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How can you evict tenants without the court system?

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

Many Landlords have no idea how to get rid of a tenant, whether it's for non-payment of rent or for lease violations. This is even more obvious as the eviction moratorium stretches to almost a year now.

Share your best tips and techniques for getting rid of bad tenants without using the court system.

Please only share methods that are legal! 

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Karl B.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
5y

Rattle some chains outside their windows while groaning so they think the place is haunted. 

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  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    5y

    Cash for keys or a civil action for unpaid rent

    0Reply
  • Alan DeRossett
    Investor · Thousand Oaks, CA · Member since 2017 · 306 posts · 123 votes
    5y
    Currently, in 2021, courts will not do much if you try to evict due to COVID-19 and civil actions cost more than you can hope to recover in most cases making Lawyers the only winners. so we pay them to move and they don't get angry and thrash the properties they even want to help clean up since out of work. We even have eviction moratoriums until the end of Summer.
    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    5y

    Cash for keys is the answer.   If my market, the tenants have lots of rights.   An eviction, if contested, will take six months, maybe more.

    I offer around $200 to $600.  During the early phase of Covid, when I realized that a non paying tenant could stay over a year, I was prepared to offer $2,000.   I struck a deal at $1,100.

    I also possibly offer a guarantee not to go after back rent.  And I have even cooperated in sealing the eviction from their records.  I NEVER gave them a recommendation letter, although I was asked.  

    Evictions are very expensive if I include lost rent, downtime and attorney fees.   I altered my whole business plan to avoid the types of properties, locations and tenants where evictions are common.

    1Reply
  • Eric Malone
    Member since 2019 · 35 posts · 25 votes
    5y

    @Jonathan Trimboli what’s a average price for cash for keys? 500 bucks, half months rent?

    1Reply
  • Ryan Whitfield
    Tampa, FL · Member since 2021 · 6 posts · 8 votes
    5y

    @Nathan G. My old boss is a genius at this stuff. He used to knock on the door and tell them he’d give them a grand if they packed up and left that day. Worked 9/10 times!

    3Reply
  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    There are so many layers right now on this. I've been talking to an army of attorneys for each state we operate in. It is not just the CDC, but also state laws that are changing every month right now.

    If a tenant has not submitted a CDC Affidavit, you can evict them under the state's current rules, including for non-payment. They have to submit the form. Even if they sign the form, they are required to attempt to pay some rent each month, and meet all the requirements outlined in the document. 

    At the state level, for example Virginia, requires a 14 day pay or quit notice now (It was 5). However now, all tenants are required to apply for assistance, or the landlord can do it for them, but if they don't get it in 14 days, you can evict them (we have not tested that last part). We are now required to also give a 6 month interest free payment plan on past due rents. You basically set it aside, but if they fail to pay the amount under the payment plan, or future rents, you can evict.

    I don't believe in cash for keys, but we do credit for keys. We normally outline all their options, and tell them if they move out, we wont report the money owed to the creditors, and take them to collections. They lose their deposit, and we just eat the cost. This normally works.

    If that does not work, look for lease violations, such as damages to the property, drug dealing, etc, and always give notice of lease termination. 

    We are now working on having a month to month or 90 day lease agreements vs year or longer, as it's the quickest way to address this issue, and we are noticing most states are currently thinking about making their temp tenant laws for COVID, permanent, according to the attorneys.

    1Reply
  • Alan DeRossett
    Investor · Thousand Oaks, CA · Member since 2017 · 306 posts · 123 votes
    5y

    In California, we have an eviction halt until June 30th statewide. lots of lawyers want to act clever and take your money.
    The bottom line is to pay tenants to leave if you can't wait for them to recover. Or if you think they will not pay you. Credit Checks are nearly useless here but my worst tenant ever had the best Credit and Best Uncle Lawyer and would not pay Rent. All my current tenants have paid all rents. its one of the advantages of keeping rents lower and having the same tenants who all get along for 8 years now. sure I could charge more and have continual turnover. fights between tenants but this is a lot smoother. Our Mortgage is paid off and I have other income. so this is nicer with no hassles. I told all if there's a problem to move out. We keep everything repaired and have a healthy living condition if they do not want to live in our units they would leave. https://www.nolo.com/legal-enc...

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Julie DeWolfe Arroyo:

    @Nathan G. When you *pay to leave*, are you able to use that cost as tax write off, and if so, how?

    If over $600 give their butts a 1099. 

    5Reply
  • Beth Vandroff
    Property Manager · Lakewood Ranch, FL · Member since 2020 · 13 posts · 4 votes
    5y

    Managing over 1,000 properties we've have found that if you stay in touch, keep the inspections on tract, lines of communication open you have a better chance of success. 

    Even in the worst of times we found that landlords are willing to workout payment options due to circumstances (loss of job, covid etc.) If it comes down to a poor payment history at the 7 month mark issue non renewal. In many cases tenants know they are in default and will leave quietly even before the lease is up. 

    You are much better off having them leave without damage to the property. Last resort is to head to court and file for eviction. 

    0Reply
  • Ishmael Johnson
    New to Real Estate · NY · Member since 2020 · 196 posts · 29 votes
    5y

    @Theresa Harris

    How were you able to do so with the moratorium ?

    0Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    As far as I know there isn't a legal way to do it.  I have heard people use cash for keys as the best initial attempt.  Beyond that, it has always been my experience that the courts have to be used.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y
    Originally posted by @Ishmael Johnson:

    @Theresa Harris

    How were you able to do so with the moratorium ?

     I don't live in the US.  One was before the moratorium where I was and the other we had to wait until it was lifted which it was at the end of the summer.  The rental is in a tenant friendly province, but even that government realized you can't have people living in places forever and not paying the rent.  It was in place for 7 months (the tenant didn't pay for the last two).  Anyone who agreed to a payment plan, to pay all outstanding rent back within 10 months, was allowed to stay provided they stuck to it.  This tenant refused to communicate or pay.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Steve Vaughan:
    Originally posted by @Julie DeWolfe Arroyo:

    @Nathan G. When you *pay to leave*, are you able to use that cost as tax write off, and if so, how?

    If over $600 give their butts a 1099. 

     I was going to say the same thing. Give them a 1099-C for unpaid rents and give them a 1099-MISC for "move out expenses", AKA cash for keys. When you do cash for keys, you are forgiving debt and paying them to move out. Both are considered income for the tenant and are taxable. Of course cash for keys gives up your rights to collect unpaid rents and possibly even damages, depending on how the agreement is written. 

    Of course, you can't write off lost rents, because it is lack of income. You may be able to write off cash for keys, but you need a receipt and proof of payment (like every other expense). If you are giving someone cash, you want them to sign a receipt and have the cash for keys agreement as proof. Still, you could be questioned on it, because cash isn't traceable. A landlord could use "cash for keys" as a way to manufacture fake expenses. If you get audited, there will be questions and you need proof. Bottom line, it is better to write a check instead of giving cash. If it is over $600, you absolutely need to send a 1099-MISC if you are claiming it on your taxes.

    2Reply
  • Brian Sherman
    Investor · 95821 · Member since 2020 · 50 posts · 17 votes
    5y

    @Nathan G. Got any problem properties in Sacramento, ca you wan to get rid of?

    0Reply
  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Another option is to send the tenant a lease renewal, but have the lease say it’s a month-a-month agreement. If they sign it, under the current law, you can evict if the lease has been terminated. month-to-month is easy to terminate. You could even offer a lower rent, rent forgiveness, or whatever, that will get a new lease signed. 

    I have been reading that Biden is requesting Congress to extend the moratorium to the end of the year. Personally I am having all my managers, slowly convert our leases to month-to-month, just to be safe. 


    We are only seeing a 3 to 4% rate on CDC in our portfolio, but it was a 1% rate 8 months ago, so it’s a growing issue, and if they keep pushing the issue down the road... 

    0Reply
  • Jennifer Ruelens
    Property Manager · Williamsport, PA · Member since 2020 · 93 posts · 74 votes
    5y

    No, evicting tenants with your own means as opposed to using the court system is self eviction and against the law.  Its also dangerous.  If you are going to own a rental property, learn how to manage it.  There is no excuse for self eviction.  You can negotiate a lease termination if you need to, but do it in writing and don't threaten or intimidate the tenant.  This is the kind of stuff that gets lawmakers eager to legislate.  

    1Reply
  • Joe Chirdon
    Real Estate Agent · Harrisburg, PA · Member since 2016 · 159 posts · 82 votes
    5y

    CASH FOR KEYS 

    0Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    Recently, I heard a creative way of cash for keys on the Real Estate Rookie podcast. The landlord would pay the security deposit of the new home for the tenant. That ways it ensures that they leave. But I don't think you can evict tenants without court. 

    0Reply
  • Leo F.
    Developer · New York City & L.I. · Member since 2013 · 79 posts · 29 votes
    5y

    @aj Wish it was that easy and cheap

    @Aj Parikhundefined

    0Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    @Leo F. Sounded good on the podcast but I know how hard it can get when you are trying to move a tenant out who doesn't want to leave. The tenant I was trying to evict completely shut communication with me after she stopped paying rent. There was no way to communicate anything with them. 

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    5y
    Originally posted by @Steve Vaughan:
    Originally posted by @Julie DeWolfe Arroyo:

    @Nathan G. When you *pay to leave*, are you able to use that cost as tax write off, and if so, how?

    If over $600 give their butts a 1099. 

    You aslo include the amount of the unpaid rent , a dept not paid is considered income to the person that didnt pay .

    0Reply
  • Brian Zaug
    Lagrangeville, NY · Member since 2017 · 144 posts · 218 votes
    5y

    Call Vinni, Pauli and Rocko.

    0Reply
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