Has anyone figured out a cheaper alternative to Cash for Keys

[James McGovern]

Has anyone figured out a cheaper alternative to Cash for Keys. Looking for options that cost no more than $200...

[Charles Carillo]

@James McGovern

A common issue with cash for keys is the landlord is suggesting a price to the tenant. I always have the tenant tell me their number. Usually, it is lower than what I would have expected.

On a side note, what other options do you really have? If they are not paying (I imagine that is the issue), will you go through the whole eviction process over the next few months versus giving them a few hundred bucks? I began my career with rental properties in CT, and the eviction process can be brutal. 

[Chris Seveney]

@James McGovern

Here are several:

1. kill them and bury them in the yard

2. Burn the home down

3. Call the cops saying they are running a drug operation and they get arrested. Fill the home with drugs so they go away for a long time

This post was 100% satire as the question is comics as it’s $200 - if you own real estate $200 is nothing

[Amir Khan]

Quote from @James McGovern:

Has anyone figured out a cheaper alternative to Cash for Keys. Looking for options that cost no more than $200...

I hate the option of offering cash-for-keys to tenants who already owe me money. But sometimes you have to look at it from purely rational and business perspective. @Charles Carillo has a great suggestion to first ask the tenant. From their perspective, they may actually have no money to move. Just the cost of move could be a solution for them. And no, most likely $200 is not going to make it...

[Karl B.]

Yeah - I file a landlord-tenant complaint, sue them and win, and get them out within 45 days. Then I go to the prothonotary a month later and file a lien against them. Then comes collections.

[JD Martin]

Quote from @Chris Seveney:

@James McGovern

Here are several:

1. kill them and bury them in the yard

2. Burn the home down

3. Call the cops saying they are running a drug operation and they get arrested. Fill the home with drugs so they go away for a long time

This post was 100% satire as the question is comics as it’s $200 - if you own real estate $200 is nothing

[Chris Seveney]

Quote from @JD Martin:

Quote from @Chris Seveney:

@James McGovern

Here are several:

1. kill them and bury them in the yard

2. Burn the home down

3. Call the cops saying they are running a drug operation and they get arrested. Fill the home with drugs so they go away for a long time

This post was 100% satire as the question is comics as it’s $200 - if you own real estate $200 is nothing

 OMG I shared that song with my son the other day! Great tune. Axl needs to find a new gig though with him destroying his voice.

[JD Martin]

Quote from @Chris Seveney:

Quote from @JD Martin:

Quote from @Chris Seveney:

@James McGovern

Here are several:

1. kill them and bury them in the yard

2. Burn the home down

3. Call the cops saying they are running a drug operation and they get arrested. Fill the home with drugs so they go away for a long time

This post was 100% satire as the question is comics as it’s $200 - if you own real estate $200 is nothing

 OMG I shared that song with my son the other day! Great tune. Axl needs to find a new gig though with him destroying his voice.

 Can't beat some good GnR.... Did your son roll his eyes? 🤣

[Dan H.]

I am surprised a tenant would accept as low as $200 to leave a unit

I never do cash for keys. I do not desire to reward tenants for poor behavior.

I explain the consequences of an eviction to the tenant. I explain they will have difficulty  Renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe.  They believe I will do what I state because I have always done what I told them I would do. 

My market has a low vacancy rate.  Poor tenants cannot obtain quality housing.  My tenant requirements includes no evictions, ever.  No excuses accepted

So far with a combination of good screening and good luck, I have never needed to evict a tenant.   

When the time comes to evict our first tenant, I will hire the best lawyer and let the expert take care of it.  I will add the cost of the eviction to what tenant owes, and if the cost is not recovered I will consider it a cost of doing business. 

What I will not do is pay a bad tenant to leave so that another landlord gets stuck with having to deal with a bad tenant that I have rewarded for their poor behavior.  

Do not do cash for keys.  

Good luck

[Michael Quarles]

Good to meet you. 

Every time I enter into an agreement to purchase I have the following: 

Exclusive irrevocable possession and occupancy shall be delivered to Buyer, Buyer’s Assignees, or Buyer’s Agents at 5:00 PM on
 the date this agreement is signed by Seller,  on the date of Close of Escrow,  on ________________, 20______ or  no later than
___________ days after Close of Escrow.

I have collected my fair share of cash for keys in SS where the lender tries playing God.  

That said I’ve also paid my fair share for keys.  It’s just part of the costs and as long as I’m under 65% CTV I’m fine. 

[Rick Bassett]

@James McGovern - when it’s clear they aren’t or can’t pay then our motivation is to get them out as soon as possible to get the unit rented to a better paying tenant.

We serve them with a NTQ.

We offer them cash for keys (the equivalent of our attorney’s cost, which is about $1500) on a tight window of time.

We explain how bad having an eviction on their record is for them.

Still, only about 30% take us up on it often citing that $1500 isn’t enough moving money. So I can’t imagine anyone accepting $200.

[Eric Bilderback]

Government cheese for keys!

[Adam Bartomeo]

The best way to avoid evictions and having to pay cash for keys is to have a stellar collections process in place. This is the cheapest way to go. In SWFL the fees for eviction are only $500 - $600, so, we don't ever do cash for keys.

[Bruce Woodruff]

I like @Chris Seveney concepts. If you only want to spend $200, you could also go to a biker bar and hire a couple of those guys.....just pay cash, no paper trails....

[Michael P.]

Quote from @Chris Seveney:

@James McGovern

Here are several:

1. kill them and bury them in the yard

2. Burn the home down

3. Call the cops saying they are running a drug operation and they get arrested. Fill the home with drugs so they go away for a long time

This post was 100% satire as the question is comics as it’s $200 - if you own real estate $200 is nothing

 Pay a tough biker guy to “escort them out”

[James Wise]

Quote from @James McGovern:

Has anyone figured out a cheaper alternative to Cash for Keys. Looking for options that cost no more than $200...

 Legal options? No. But if you're going the other way you could always fill the house with snakes and/or rats.

[Ryan Keeslar]

@James McGovern yeah, offer them a ton of cash to leave, then don't pay. Cheapest thing I can think of! Lol only kidding, but seriously you can offer cash for keys but stipulate they leave the home clean, it will save you a lot of money just in labor cleaning up the place when they leave and if they leave it dirty remind them that was the stipulation.

[John Morgan]

I’m 0-1 offering cash for keys. lol. But I’m 2-2 getting them out on my own for free. I don’t recommend doing what I did to my awful dead beat tenants. But I dumped out the last person’s stuff on the front porch and changed the locks after I evicted her in court and she refused to leave. And on another house, I had someone go in and do “whatever it took” to get them out. I didn’t know he would go in at gun point, but he got them all out swiftly, dumped all their things on the front lawn and changed the locks. I know I can be sued, but these people were awful to me in several ways. I was worth the risk for me at the time. I don’t have patience for people who try to take advantage of landlords.

[Nathan Gesner]

Cash for keys is a terrible practice. I manage 400 rentals and have never paid a tenant to leave.

You ask them to leave.

You tell them to leave.

You force them to leave through the courts.

It appears you don't have the knowledge or experience to pull these off, so I recommend you talk to the tenant and see what it will take to get them to leave. If they accept a low enough amount, agree to it in writing. Only pay them after they are out and keys are in your hand.

In the future, study the law and figure out how to remove tenants without using the court system.

[James McGovern]

Quote from @James Wise:

Quote from @James McGovern:

Has anyone figured out a cheaper alternative to Cash for Keys. Looking for options that cost no more than $200...

 Legal options? No. But if you're going the other way you could always fill the house with snakes and/or rats.

This would make for an interesting skit for your youtube channel.

[James Wise]

Quote from @John Morgan:

I’m 0-1 offering cash for keys. lol. But I’m 2-2 getting them out on my own for free. I don’t recommend doing what I did to my awful dead beat tenants. But I dumped out the last person’s stuff on the front porch and changed the locks after I evicted her in court and she refused to leave. And on another house, I had someone go in and do “whatever it took” to get them out. I didn’t know he would go in at gun point, but he got them all out swiftly, dumped all their things on the front lawn and changed the locks. I know I can be sued, but these people were awful to me in several ways. I was worth the risk for me at the time. I don’t have patience for people who try to take advantage of landlords.

 lol, I don't think being sued is what you should be worried about brother. I'm pretty sure you just admitted to committing several felonies.

[Steve K.]

I’ve never had to resort to cash for keys, and never will based on principle alone. Some things I do to avoid bad situations: screen well, only have properties in good locations where people actually want to live (I find tenants behave better when they know they have a good thing going for them and that they are easily replaceable), set proper expectations, have a rock solid lease, go over it with new tenants to make sure everything is clear and agreed upon, and enforce the lease by issuing a formal notice to pay or quit every single time rent is late by even one day (and charge the late fee), or a formal notice to cure or quit every time there is a lease violation. Explain that you have company policies which you follow and never deviate from, no exceptions, no apologies. That will set the tone. Be polite and respectful, but also professional and strict. Issue appropriate notice immediately whenever the tenant breaks any of the terms they agreed to in the lease, which starts the process and shortens the timeline if you need to take the next steps towards eviction. Setting proper expectations and enforcing the lease promptly when necessary will greatly reduce the chances of ever needing to evict or getting into a situation where cash for keys would come into play. I’ve never considered cash for keys as an option, and don’t recommend it but if there is a situation where someone were to do it for whatever reason, just be sure to withhold that payment until the tenant is completely out, property is fully inspected and found to be in acceptable condition and locks are changed. 

[Isadore Nelson]

Quote from @Dan H.:

I am surprised a tenant would accept as low as $200 to leave a unit

I never do cash for keys. I do not desire to reward tenants for poor behavior.

I explain the consequences of an eviction to the tenant. I explain they will have difficulty  Renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe.  They believe I will do what I state because I have always done what I told them I would do. 

My market has a low vacancy rate.  Poor tenants cannot obtain quality housing.  My tenant requirements includes no evictions, ever.  No excuses accepted

So far with a combination of good screening and good luck, I have never needed to evict a tenant.   

When the time comes to evict our first tenant, I will hire the best lawyer and let the expert take care of it.  I will add the cost of the eviction to what tenant owes, and if the cost is not recovered I will consider it a cost of doing business. 

What I will not do is pay a bad tenant to leave so that another landlord gets stuck with having to deal with a bad tenant that I have rewarded for their poor behavior.  

Do not do cash for keys.  

Good luck

"will ding their credit", is that always true? What if you don't have their SSN, how do you make sure it is associated with them for future record?

[Dan H.]

Quote from @Isadore Nelson:

Quote from @Dan H.:

I am surprised a tenant would accept as low as $200 to leave a unit

I never do cash for keys. I do not desire to reward tenants for poor behavior.

I explain the consequences of an eviction to the tenant. I explain they will have difficulty  Renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe.  They believe I will do what I state because I have always done what I told them I would do. 

My market has a low vacancy rate.  Poor tenants cannot obtain quality housing.  My tenant requirements includes no evictions, ever.  No excuses accepted

So far with a combination of good screening and good luck, I have never needed to evict a tenant.   

When the time comes to evict our first tenant, I will hire the best lawyer and let the expert take care of it.  I will add the cost of the eviction to what tenant owes, and if the cost is not recovered I will consider it a cost of doing business. 

What I will not do is pay a bad tenant to leave so that another landlord gets stuck with having to deal with a bad tenant that I have rewarded for their poor behavior.  

Do not do cash for keys.  

Good luck

"will ding their credit", is that always true? What if you don't have their SSN, how do you make sure it is associated with them for future record?

Can you run their credit without SSN?

Various collecting agencies will report to the credit bureaus.  Last I saw (which has been a while) both Rent Recovery Service and AOA Debt Reporting service could report to credit bureaus.  There are likely other options.  

Good luck