If you manage rental properties for your clients, you may have one client who wants to sell their property while it’s still occupied.

"Cash for keys" is a process in which a property owner or landlord offers tenants a financial incentive to vacate a property voluntarily and promptly. This is typically done to avoid the time, costs, and hassle of eviction but it’s also useful in situations where the owner wants to sell, and their property is still occupied. 

In this article, we will break down cash for keys so that you will know if it’s a solution that you should consider.

Cash For Keys Overview

Negotiation: The landlord or property owner initiates the process by approaching the tenant with an offer. This offer includes a sum of money in exchange for the tenant voluntarily vacating the premises by a specified date. The amount offered can vary depending on factors such as local housing market conditions, the tenant's cooperation, and the landlord's preferences.

Written Agreement: Once both parties agree on the terms, a written agreement is drafted. This document outlines the details of the arrangement, including the amount of cash offered, the date by which the tenant must vacate, and any other relevant conditions.

Inspection: Before disbursing the cash, the landlord may conduct a final inspection of the property to ensure that it is being left in an acceptable condition. This may involve checking for any damages beyond normal wear and tear.

Payment: After the tenant has vacated the property and met any other conditions specified in the agreement, the landlord provides the agreed-upon cash payment to the tenant. Payment can be made in various forms, such as a check, money order, or even cash, though using a traceable form of payment is often recommended for documentation purposes.

Return of Keys: The tenant hands over all keys and access devices to the landlord, signaling the completion of the agreement.

Legal Release: In some cases, the written agreement may include a legal release, stating that the tenant agrees not to pursue legal action against the landlord in exchange for the cash payment. This can provide an additional layer of protection for the landlord.

It's essential for both parties to carefully review and understand the terms of the agreement before proceeding. "Cash for keys" can be a mutually beneficial solution, avoiding the time-consuming and potentially adversarial process of eviction while providing the tenant with some financial assistance for relocation expenses.

Contact GoldenWest Management

At GoldenWest Management, our team saves busy owners the time and hassle of managing their rental properties themselves.

To learn more about our services, contact us today by calling (866) 545-5303 or click here to connect with us online. 

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