Cash for Keys Eviction for senior couple in San Francisco

[Will Lee]

Hello BP family! 

I have another problem that would love to brainstorm and get some feedback on for San Francisco Flat that I would like to get some help on!

Scenario:

- Landlord/Owner bought 2 br/2ba flat in San Francisco Richmond area

- Rented to 2 seniors (couple) that has lived in the flat for almost 8 years (rented since 2009)

- Rent is around 1000/month but Market Value is now around 3000/month

- Rent has been stagnant for all 8 years (never raised)

- Owner/Landlord would like to evict tenant to bring rent up to market value or to live in 

- Owner/Landlord is open for Cash for Keys or OMI (Owner Move In) eviction to get place back but wants to assess what is the best financial/logical decision

-  OMI process estimated to cost around 16,000 for Tenants + 5000 for Lawyer

-  Owner/Landlord already offered 21,000 to Tenants, but Tenants "googled it" and saw numbers as high as 100,000 for other "Cash for Key's" offers.

Question:

- As a Landlord/Owner, what is the basic calculation to use when assessing how much money to offer as "Cash for Keys" as the Base amount vs  Industry Avg vs High Amount.

- IE: Is it something like 5x monthly rent? or Some specific calculation? 

- What is everybody else's experience in offers/#'s that were successful for Cash for Keys in San Francisco?

Thank you so much for your time and responses! Very much Appreciated!

Will

[Michael Julian]

What's the point of a month to month lease if you are forced to renew it? No wonder I see so many Ca tags on cars moving to TN....