What to do when tenant breaks Cash for Keys agreememt?

[Chrystian Tapia]

Hello BP Community,

I'm a first time landlord, I recently purchased a multifamily building in Chicago, Cook County. I made a cash for keys agreement with a tenant. About a week before the vacancy date on our agreement, i gave the money to the tenant so they can move into their new apartment. Both the agreement and the reciept of the money was documented and notarized. As you may have already guessed, the tenant did not vacate the property. Aside from the traditional eviction process, are there any other options available to remove the tenant from my property? Does the notorized cash for keys agreement, carry any weight? Is breaking the agreement a criminal offense? If anyone can shed some light on this topic or offer a suggestion, I would greatly appreciate it. Thank You!

[Joe Cassandra]

Originally posted by @Karen F.:

Chrystian, I know you won't like hearing this, and I know you will probably ignore the advice.  Sell the complex at your first possible chance, and get out of this business.  The basic premise of "Cash for Keys" is that the tenant is a slimeball who is so horrible that you know you won't get a penny out of them even if you were to get a judgement for back rent.  You NEVER give cash for keys until the tenant has moved everything out, and they have signed an agreement saying that they are giving you back the unit voluntarily, of their own free will, and you have locked the windows and changed the locks so that they cannot get back in.  Then you give them their money.  No matter what they say, no matter what agreement they sign, no matter if it's notarized by GOD.  The fact that you didn't understand the basic idea that someone who is so awful that you are PAYING them to leave, could never be expected to honor a contract, makes it clear that you are unsuited for this line of business.

Having made such a serious error makes it obvious that you are not cut out for this business.  That's okay, most people aren't.  Better to realize it now, than later, after you have lost a lot more money.  Take my advice - sell it and get out of this type of work/investing.  It's not for you.

 Wow, Karen. Please spill your secrets about how you have a 100% win rate on every deal , have never had a contractor or tenant take advantage of you, or lost money in any way.

Plenty of successful RE investors have made much bigger mistakes than losing a thousand or two woth a bad tenant.

Get off your high horse.