Try as we may to select the best tenants, sometimes things just go badly with a rental. Eviction is the obvious answer when a tenant is always blowing off the rent payment, causing damage to the unit, or becoming disruptive or a nuisance to other tenants.
But evictions are expensive, and time-consuming. A number of property managers look at another option: cash-for-keys.
Cash-for-keys is a negotiated termination of the lease, on terms that both parties will accept. Because cash-for-keys is voluntary, it can avoid the costs of an eviction. It also can avoid further property damage by an uncollectible tenant, and get the property back on the market sooner than an eviction.
Just be sure when selecting this option that you are getting rid of the tenant for the right reasons, and not discriminating against them. It’s not a bad idea to talk to your lawyer to make sure the agreement you negotiate will hold water.
American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.