going rate for cash for keys in Massachusetts?

Question

Hi,

Just taking a quick poll, I'm considering offering cash for keys in parallel with moving toward eviction for nonpayment, blatantly breaking lease terms and damaging the unit. The tenant is contesting it in court though, may apply for state assistance, etc and it is going slow. What is the "going rate" for cash for keys in Mass? This is a class C 2 bed in Worcester that has an old lease at $875/month, but would rerent at maybe $1100, with some refinishing planned, I expect $1300-1400 for it once it turns over.

Also, any suggestions on when or how to propose this to the tenant?

Thank you all.

Lien Vuong · Answer

As in any negotiation you start low and go high. People typically are paying around 1-2 months rent because it is allocated towards moving expenses. Unfortunately I have seen $5-10k for these deals, some of mine included (you live and you learn :)).

Brian J Allen · Answer

I am with Lien on this, but in Worcester we are seeing the number even higher in some cases.  I made an offer on behalf of a buyer where we offered $10k for each vacancy and still ended up with someone on one of the floors.  They simply couldn't get them out with 45 days from offer to close and the $10k incentive.

Jiva Segaran · Answer

@Jack Knight Aloha , I usually offer to pay the security deposit on their new place and go from there.  $2k seems like a common number people usually jump for.  Good luck!

Jack Knight · Answer

In case it helps someone to have a real number, we did eventually get them out with cash for keys for about $4k. We were pretty far along on eviction proceedings in the courts as well and I think having that eviction alternative looming as a likely outcome fairly soon encouraged them to accept it. I suspect without having the eviction looming, they would have stuck around longer. This was an especially thorny tenant.

Jonathan Bombaci · Answer

@Jack Knight we normally offer $1k to start and move it up from there. I just purchased a 2 unit in southern NH where the previous landlord was working on an eviction for months. Since January 2021 actually. The unit is trashed but the state pays their rent on time every month. We closed on it on Monday left a notice to vacate there Monday night. Today the tenant called saying they had no heat for months. We told him someone was on his way to check it out, the thermostat was damaged, but I told him we need the apartment to renovate. A 20 min conversation mostly complaining about the previous owner and $2k later and he agreed to move out in 10 days.

We’ve done cash for keys at least 10 times during covid and paid as little as $500 and as much as $6000 depending on the situation but most move along between $1500-$2500. Ask then where they would go and if you can help them with moving expenses, then start low. You’re helping them out, not the other way around. To evict them it takes legal fees and you’d rather give it to them than to the attorneys. At least that’s my talk track, Best,

Jon

Douglas Snook · Answer

I would look at it like, what would first, last and security be on a new place plus maybe the cost of the mover. It can add up quick.

Also I wouldn't offer it to them directly if you can help it. Offer to pay the new landlord/movers instead

Brian J Allen · Answer

Still trying to get them out in multiple properties

nature of the game.

Erick Sembrano · Answer

Sounds reasonable to offer a bit low and go higher if needed during negotiations. It seems like the tricky part is to determine what amount would you start your offer that would seem to be generous enough for them to consider / take / start of as a negotiation point. In my experience however I shelled out 15k just to get them to leave unfortunately.

Jack Knight · Answer

Thanks all! I had heard $10k-15k and it sounded a bit crazy, but I guess not really given our crazy covid situation.

@Brian J Allen What happened with the one that stayed? How did you eventually get them out?

going rate for cash for keys in Massachusetts?

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