Enforceable Lease Terms

[Ragnar Lothbrok]

Cash for keys is a joke. I understand the utility in it, avoiding the long process of eviction and hassle is preferable. But, this policy basically establishes your lease agreement as unenforceable.

If your tenant decides to move in 4 friends and a horse? Ah, no problem, here's your money back, have a good day. Smoking inside, turn the lawn into a rainforest, and making "alterations" to the house? Please, let me pay you to leave.

With this status quo, I almost don't blame some tenants for not following the rules. They're just suggestions that are profitable to disregard.

I was wondering what other landlords think about the following:

Structuring the lease to include fines for violations with systematic notices and payment deadlines instead of threats of termination. As such, I believe if the agreed fee payment deadline is missed, a landlord could then file a 7-day notice to cure rather than a 30-day notice to quit. I believe with a 30 day notice, one can almost garuntee their house is trashed and next month's rent lost. Further, garnishments take a year or longer to obtain, if the former tenant is collectable at all.

Please tell me your thoughts.

[Jeff Willis]

Lipstick on a pig. You do not have the power to fine tenants and what you charge in penalties is often regulated by state law. If you have a problem tenant, a 7-day notice to cure will do what? They ignore it and then what? Well, you are back to the eviction process. If you think for one moment that a problem tenant will move out because they received a 30-day notice to quit, think again. Notwithstanding state laws on evictions, you will have lots of expenses, waste lots of time and, have repair expenses for evictions.

There are law firms that specialize in representing tenants in eviction processes. Their sole goal is to drag it out as long as possible and 6+ months is not unreasonable for an eviction. That means 6+ months of no rent, a trashed house, and lots of legal expenses you have to pay. If you think you will ever collect the money from a deadbeat tenant, not going to happen.

It is easier to give them a cash incentive to leave and ensure the rental is in reasonable condition. Naturally, they sign the necessary releases.

Giving someone 10K in hundred dollar bills is a much better business decision that spending 20-50K in the eviction process and damage repair.

So, cash for keys is not a joke, it is a business decision.