General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Cash for keys
Hi folks. Got a question about a tenant who I would like to have move out of my 3 unit building.
A little background first, this tenant started a bedbug breakout in the house (I know I can not evict for this reason, as it is considered retaliatory). Also, there are some items left outside in yard that she has been asked to pick up (matress, car parts, tires), and has yet to do so. She has always paid rent on time or within a few days late, so no issues with that. But she has had a dog in the apartment and also has housed others (her grown children, and a boyfriend). Both of these issues have since been remedied (or so I think). Anyways a couple of days ago the cops were called because the boyfriend was over the house and caused a scene, threatening my tenant and waking up the other two units at 1AM.
Long story short, anytime I get a call from anyone in the triplex, it is about the 2nd floor. Other apartments, no issues whatsoever. So I would like these people to move out.
Some ideas I was considering:
1. Saying that I have a family member (brother, his girlfriend, and his son) that needs a place to live and giving them 30 days to move out, (they are on a month to month agreement).
2. Giving them cash for keys - Give them their security deposit plus 200 bucks or so, if they leave within 2 weeks. I've read a few posts about this and am in the process of writing up some sort of agreement, but know not to give them the cash until they are outside and the apartment is in the condition specified in the agreement (clean, everything out, etc..).
3. Filing for an eviction for reason other than non-payment of rent because of the dog and the extra tenants. However, not sure if I can do this since the issues have been remedied already.
4. Doing a combination of the family member, giving her the 30 days required, but offering her cash if she can be out sooner. So saying, "Hey my brother needs a place to stay, I am giving you the required 30 day notice, but if you can be out within 2 weeks I'll give you 200 bucks (or 100??), plus your security deposit, less any damage." I figure this way so that they don't accept just the cash for keys and then not leave when agreed upon.
So, what does everyone think?? Feedback please.
Thank you so much for reading and for the help. Appreciate it.
Cash for keys seems the right approach. Depending on your market and the amount of the rent, the amount you are talking about might be very, very wrong.
During the time I was renting, there was never a single moment when I would have agreed to move out before my lease was up for any amount not well into 4 figures. Moving costs more than $200.
My experience is that it's easiest to just give them 30 days notice (or whatever is required - in CA it's 60 days if they've been there a year or longer).
When I've had to do this (we also used month-to-month agreements), I've spoken to them and told them in person that I have to kick them out because of the on-going problems, but I want to make it an easy move-out for them. Tell them they have 30 days to move (or 60, etc.) but they can move even sooner if they find another place sooner. And that you will give them their full deposit on the day they move out in cash, if they leave the place clean and remove all their stuff.
You could start there. That's been all I've ever had to offer. You can offer to put that in writing.
If you feel it's necessary, if they say they don't have money to move (after you've already offered the above), then say, Okay, I can give you $200 (or whatever) now to help you move, and the rest on move-out day.
Another possibility came to mind - where you offer them $500 additional if they move out in, say, 3 days (to be paid along with their deposit but only on the day they leave). Each day after that, the amount goes down by $50?
Whatever you agree to, put it in writing.
They usually ask if it will be an eviction that will show up on their credit report, so you might want to also explain that this will not show up on their credit report, and will not be considered an eviction as long as they move out as agreed. And that you will just tell any potential landlords that the agreement was terminated mutually and just give the dates they lived there and that they paid as agreed.
This type of agreement has worked well for me, and they normally got their deposits back. We did have to recarpet one place and the owner just chose to eat that cost (only around $500 - he used cheap carpet), because of cigarette burns on the carpet. It was still easier and cheaper than an eviction.
Originally posted by @Sue K.:
My experience is that it's easiest to just give them 30 days notice (or whatever is required - in CA it's 60 days if they've been there a year or longer).
When I've had to do this (we also used month-to-month agreements), I've spoken to them and told them in person that I have to kick them out because of the on-going problems, but I want to make it an easy move-out for them. Tell them they have 30 days to move (or 60, etc.) but they can move even sooner if they find another place sooner. And that you will give them their full deposit on the day they move out in cash, if they leave the place clean and remove all their stuff.
You could start there. That's been all I've ever had to offer. You can offer to put that in writing.
If you feel it's necessary, if they say they don't have money to move (after you've already offered the above), then say, Okay, I can give you $200 (or whatever) now to help you move, and the rest on move-out day.
Another possibility came to mind - where you offer them $500 additional if they move out in, say, 3 days (to be paid along with their deposit but only on the day they leave). Each day after that, the amount goes down by $50?
Whatever you agree to, put it in writing.
They usually ask if it will be an eviction that will show up on their credit report, so you might want to also explain that this will not show up on their credit report, and will not be considered an eviction as long as they move out as agreed. And that you will just tell any potential landlords that the agreement was terminated mutually and just give the dates they lived there and that they paid as agreed.
This type of agreement has worked well for me, and they normally got their deposits back. We did have to recarpet one place and the owner just chose to eat that cost (only around $500 - he used cheap carpet), because of cigarette burns on the carpet. It was still easier and cheaper than an eviction.
This all assumes no lease, while the OP seemed to be describing a situation where there was a valid lease in place.
There will likely be many different opinions here, but personally I like to give tenants options because it makes them feel like it's their choice. Kind of like with children....if you ask a child to eat his vegetables, most will put up a fight. But if you frame the question differently and ask if they'd rather have peas or corn with dinner, most will choose one or the other and you'll have a much easier time getting them to do what you wanted in the first place.
With that being said, since they're just on a month-to-month agreement, I'd choose option #4 (though I personally wouldn't tell them the part about family needing to move in if that's not true). I'd give them the 30 days notice but also offer the cash for keys as a bonus if they can be out sooner. As for the amount of cash you choose to offer, that's up to you and how badly you want them out. $200 is probably a bit low as Richard pointed out, but it also depends on the monthly rent because $200 to someone paying $450/month in rent is a lot more money than $200 to someone paying $1,450/month in rent.
My absolute last choice would be the eviction route because of the time and expense generally involved.
You mention that the tenant is on month to month. If so you should be able inform that you would like them to move out any cause. You would need to give them appropriate notice 60 days it could be more if they are long term tenants.
You need a cause only if you are trying to evict them. This will become necessary only if you give them say 60 day notice to move out and they refuse to do so at that time.
The information I state is how it would work in California so check how things work in your state.
Originally posted by @Richard C.:
Originally posted by @Sue K.:My experience is that it's easiest to just give them 30 days notice (or whatever is required - in CA it's 60 days if they've been there a year or longer).
When I've had to do this (we also used month-to-month agreements), I've spoken to them and told them in person that I have to kick them out because of the on-going problems, but I want to make it an easy move-out for them. Tell them they have 30 days to move (or 60, etc.) but they can move even sooner if they find another place sooner. And that you will give them their full deposit on the day they move out in cash, if they leave the place clean and remove all their stuff.
You could start there. That's been all I've ever had to offer. You can offer to put that in writing.
If you feel it's necessary, if they say they don't have money to move (after you've already offered the above), then say, Okay, I can give you $200 (or whatever) now to help you move, and the rest on move-out day.
Another possibility came to mind - where you offer them $500 additional if they move out in, say, 3 days (to be paid along with their deposit but only on the day they leave). Each day after that, the amount goes down by $50?
Whatever you agree to, put it in writing.
They usually ask if it will be an eviction that will show up on their credit report, so you might want to also explain that this will not show up on their credit report, and will not be considered an eviction as long as they move out as agreed. And that you will just tell any potential landlords that the agreement was terminated mutually and just give the dates they lived there and that they paid as agreed.
This type of agreement has worked well for me, and they normally got their deposits back. We did have to recarpet one place and the owner just chose to eat that cost (only around $500 - he used cheap carpet), because of cigarette burns on the carpet. It was still easier and cheaper than an eviction.
This all assumes no lease, while the OP seemed to be describing a situation where there was a valid lease in place.
He said they're on month-to-month.
thanks for all the suggestions. Sorry for the redundancy but would I be able to give them a 30 day notice for no rea son at all and just say I am choosing not to renew their agreement for the following month? I think this is what @Radhika Miriyala was suggesting.
If you have a month to Month lease yes you should be able to give a notice with out a cause.
One thing to keep in mind when doing this is if you are in rent control area's (hopefully you are not) you may not be able to increase rent for the new tenant.
30 day notice. No reason needed. Giving cash for keys is being nice. It may be an incentive for them to leave sooner, but they may need the time to locate other housing anyway.
Originally posted by @Kevin Andrews:
thanks for all the suggestions. Sorry for the redundancy but would I be able to give them a 30 day notice for no rea son at all and just say I am choosing not to renew their agreement for the following month? I think this is what @Radhika Miriyala was suggesting.
No, you don't have to give them a reason. But, it's true if you're in rent control you can only evict for cause.
But, I still think it's worth offering them a deal to leave the place clean and empty. Angry tenants who are being kicked out can be destructive.
I had a similar situation, in my jurisdiction 30 days is required on month to month. I had a laundry list of good reasons to evict, but 30 days notice is cut and dry. It's easier to prove 30 days has passed since they were served notice than it is to prove any other claim of breaking the lease. If they wanted to try and out stay their welcome, they could dispute your claims and have the process dragged out at a cost of more appearances and longer vacancy. not sure about your jurisdiction but in mine, you simply give the tenant notice that you are not renewing the lease, if they refuse to move at that point you begin the eviction process. No legal advice here, just my personal experience.
[This is general, not state specific].
If you are on a month to month lease, just end the lease. That's the beauty of them. Remember, you always want to say the minimum possible to avoid any litigation for any reason [Fair Housing etc]. Just inform the tenant, in a legally acceptable way, that you are not extending the lease after next month. Give proper notice etc but no mention of your family, their noise, anything.
What are eviction times and costs like in your area? Will you have trouble getting another renter?
In my area I have to give 30 days notice. And then once we file for eviction the tenant then has 20 days to reply and then after day 21 we get a court date within the next 10 days. So its overall about a 60 day process. 30 days if they actually move out within the 30 day notice. Cost wise I am not sure off the top of my head, it's been a while since I've had to evict someone. I believe it is 100 for filing and execution fees. And then you have to pay the sheriff to serve the summons.
I don't think I will have trouble finding another renter. I'm just worried about the outgoing tenants doing damage before they leave, making it cost more to fix stuff and then taking time before I can get a new tenant.
As of today, I have sent out the 30 day termination of tenancy letter as required by my state law. The tenants have until May 31st to move and I regain possession on June 1st. I did not yet extend an offer of cash for keys. I will wait and see what response I get first from the tenant on not renewing the lease. Thanks for the help everyone and I will keep you posted on how everything works out