Cash for keys vs Eviction / San Jose

Cash for keys vs Eviction / San Jose

Member since 2021 · 23 posts · 4 votes

Hello,

I have a SFH property in San Jose where the tenant has not made even 25% cumulative rent the past 3 months. Rent is 2500$.

Losses incurred till date. 7000$

The lease expires March 30th. I am starting to worry that Newsom and co will a) expand the state moratorium into Q3 and b) not allow eviction for holdover tenants (just like in NY). I am also worried that Biden will extend the federal moratorium even more. I am not too thrilled by the state/federal possibilities of landlord assistance. Even if California gets 2B from the rental assistance pool, I doubt I'll see even 1000$ and that too might take months to play out. 

Tenant is not low income and has not applied for any rental assistance to my knowledge. However tenant returned the covid declaration along with several pay stubs for September/October (I did not ask for the paystubs). When I examine the pay stubs I see that the tenant has worked overtime for several weeks - in effect earning more than their monthly pay for that period. So the act of signing the declaration appears like perjury to me. 

What are the chances of an attorney willing to challenge the tenant? 

There are some other potential lease violations like the tenant getting their boyfriend to live in the house. How would I even prove this as a lease violation?

There are several other infractions like broken lights, not maintaining the backyard , etc. But all these seem like things that the tenant could wriggle out of.

I am also willing to look at other alternatives, like cash for keys, of getting my house back before any more moratorium extensions. 

What is the best strategy for cash for keys? How do I make a cash for keys offer without weakening my position even more? Should I be using a real estate attorney to make the offer or should I be doing it? How much should I be offering for them to go away considering the rent is 2500$? 

This forced government takeover of my property rights is leaving me totally stressed! I'd love to hear your opinions.

0Reply
44 views

Investor-friendly agents in San Jose, CA

See the agents BiggerPockets members work with in San Jose, CA.

Most Popular Reply

Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
5y

Sure, cash for keys will be cheaper just like paying paying bribes every time. In the long run, though, you're not doing yourself and the rest of us landlords a favor. 

As for me, I don't care how much it would cost me.  You mess with me I am doing what it takes to give you an eviction on your record.

I just had a tenant offered to pay me all 5 months in full and move out so they don't get an eviction. They stopped paying because some family told them the cdc moratorium meant they didn't have to pay rent. I spent months explaining to them that is not how it works.  I finally filed and had the sheriff serve them.  When they called and offered to pay in full what they owed, I said no and pushed through the eviction. They now got an eviction on their permanent record. Next step is I am sending my lawyers to garnish their wages. I don't care that this is an inefficient way to deal with this. I refuse to reward for bad behavior.

But it is your property. Do what you think is best for you. I'm just saying cash for keys is rewarding for bad behavior. You are feeding wild dogs and then ask why they keep gathering around your property demanding more food.

See this reply in the discussion

12 Replies

Jump to latestLatest
  • Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
    5y

    Cash for keys is going to be much cheaper than an eviction and much faster. Definitely go with the path of least resistance first.

  • Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y

    Sure, cash for keys will be cheaper just like paying paying bribes every time. In the long run, though, you're not doing yourself and the rest of us landlords a favor. 

    As for me, I don't care how much it would cost me.  You mess with me I am doing what it takes to give you an eviction on your record.

    I just had a tenant offered to pay me all 5 months in full and move out so they don't get an eviction. They stopped paying because some family told them the cdc moratorium meant they didn't have to pay rent. I spent months explaining to them that is not how it works.  I finally filed and had the sheriff serve them.  When they called and offered to pay in full what they owed, I said no and pushed through the eviction. They now got an eviction on their permanent record. Next step is I am sending my lawyers to garnish their wages. I don't care that this is an inefficient way to deal with this. I refuse to reward for bad behavior.

    But it is your property. Do what you think is best for you. I'm just saying cash for keys is rewarding for bad behavior. You are feeding wild dogs and then ask why they keep gathering around your property demanding more food.

  • Member since 2021 · 23 posts · 4 votes
    5y


    @Lam N.believe me I've thought about eviction a lot. If the moratorium were winding down, I would fully approach this problem from the point of view of eviction.

    But with the politicians willing to shaft us landlords into 2021 I can see cash for keys being practical.

    @Tanner Sherman would you know where I can get a template for cash for keys?

  • Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
    5y

    @Ming Wan I agree with what he said as far as pride and principle. I’ve never had to deal with it so for all I know if I was in that situation I would fight even if it meant costing me more money.

    I would google a termination of lease agreement. Then you can edit it to say that you agree to pay a set dollar amount and they agree to move out.

  • Member since 2021 · 23 posts · 4 votes
    5y

    Thank you @Tanner Sherman

  • Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 302 votes
    5y

    @Ming Wan  If going the eviction route make sure you understand all of the laws well.  They have changed and are constantly changing this past year or hire an eviction attorney.

    I would recommend an attorney.  Best $1-2K you'll spend completing an eviction.

  • Member since 2021 · 23 posts · 4 votes
    5y

    @Chad Hale Thank you for your thoughts. I'll be chatting with eviction attorneys in the coming week to explore all options.

    Also I am curious, have you been seeing delinquency problems with properties you manage?

  • Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 302 votes
    5y

    @Ming Wan  I am not seeing issues with residential properties I manage.  Commercial properties are another story.

  • Member since 2020 · 16 posts · 5 votes
    5y

    For Washington state it specifically calls out its only relevant to people "impacted by lay offs and reduced work". Is there nothing in California's moratorium? Also have you explained that the rent is not forgiven, it's just deferred thus you'll legally be allowed to collect at some point. Obviously not optimal but perhaps they'll understand its not in their best interest to not pay when they are able.

  • Member since 2021 · 23 posts · 4 votes
    5y

    I've sent comprehensive emails outlining what they need to pay (25%, 50%, etc) in accordance with the moratorium dates. I've also reminded them of the same in texts and emphasized on accountability language that CA/San Jose have provided.

    The problem is CA's declaration has no other conditions. It's very easy for a tenant to send it without fear. It does not even place a notary condition on the hardship declaration.

    I think tenants are hoping that that Newsom and his cronies will extend the moratorium for a long time. So they have no incentive to pay at all.

  • Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Ming Wan:


    @Lam N.believe me I've thought about eviction a lot. If the moratorium were winding down, I would fully approach this problem from the point of view of eviction.

    But with the politicians willing to shaft us landlords into 2021 I can see cash for keys being practical.

    I completely understand.  My approach is I would rather burn down Rome than let the barbarians have it.  It is purely a personal choice.  At the end of the day, you do what is best for you I guess.

    i follow a strict scorched-earth policy.  I'm not going to let them get away with it.


  • Member since 2021 · 23 posts · 4 votes
    5y

    Update:  

    I was able to get help from an eviction attorney. The tenant had a long list of lease violations (pet, unauthorized occupant, you name it, etc). I sent them a cure or quit and followed up with an inspection notice. The tenant chose to vacate the premises. I did a walkthrough today and house looks to be in good shape. 

    I know need to figure out how to collect 5 months rent owed. I'll also be going super crazy with my screening going forward.

    Big thank you @Nathan Gesner, @Patricia Steiner, @Chad Hale. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.