Best approach to get a tenant out: Eviction or Cash for Keys?

Question

Hi community,I'm debating between eviction or cash for keys to get a tenant out of a property. I've bought my first turnkey property in Maple Heights, Ohio back in July that has a tenant in it already. The tenant had been paying rent late ever since then and we had to keep filing for a 3 day notice. Eventually, she caught up and was current on her rent last month, so I thought I'll probably just tolerate her late payments as long as she does pay. But this month my PM told me that the tenant just decided to stop paying at all and wasn't responding back to them. The PM told me they already filed for an eviction and was just waiting for the hearing. I actually didn't want to choose the eviction option, because I'm not sure how long I'll need to wait until the court gives us a date AND eviction by itself can be costly. So I was thinking of other alternatives such as Cash for Keys. Although, my PM manager told me that their lawyer doesn't recommend this option and that eviction was my only option, (I believe it's because the PM has never done cash for keys before that's why they don't recommend it) But I still insisted on choosing cash for keys. The PM emailed me back earlier and told me that I can choose the cash for keys but the tenant isn't answering the phone and doesn't answer the door when they went there.What do you guys think? Is Cash for Keys the best option for this if I want to save some time and money? And if so, how would I choose this option if the tenant isn't answering us? Do you think it's better to just evict and wait for who knows how long? Are there any other better alternatives than these two options? It also crossed my mind if I should try to look for another PM or attorney who does cash for keys or something else better than eviction. Thank you in advance for any advice and suggestions!

David Terbeek · Answer

Cash for keys can be an option but it is near impossible if the resident is not responsive. Either way, having the eviction filed is a must for leverage. And, it is a good backup if they do not agree to CFK or if you get to the date of the CFK and they don't follow through. You would not want to start the eviction at that late date after you waited for the CFK to process.

Jack Smith · Answer

I'm not going to fall into popular sentiment here... but I won't do cash for keys - that's a woosie exit strategy and I'll say that to anyone that promotes it. After nearly 30 years of having attorneys telling me not to keep throwing good money after bad, and after being taken advantage of so many people owing me money, I started making a difference with my effort to stop the madness. With today's technology and tracing abilities I go after them hard for what they owe me. That's my money and they owe it. Think the cell phone companies would pay cash for debt? Think the hospitals would pay cash for debt? Think Amazon or any retail or CC company would take cash for debt? I'm not going to negotiate it away and anyone that tells you to do so is a wimp. In fact, I'm coming after them even harder with fees and penalties. With the use of collection agencies it's really easy to find anyone now. And while you can find just about anyone on social media, it's really easy to point a collector in the right direction. Even if you don't want to file for a judgement (WHY??), I'll just gift them with a really nice and juicy 1099 so that it screws up their tax return and other benefits income. I don't feel sorry for them one freaking bit at that point. Yes, that's vengeance, but it's also my responsibility to the owners of the property to pursue bad debts. Think about that before you give into 'cash for keys'.

Marc Rice · Answer

Cash for keys is usually easiest if you have open communication. I would agree with what the others said above, post the 3 day notice with an option for cash for keys. If they don't get back to you within a few days then file the eviction process which could take 3-5 weeks in most areas (slower due to holidays probably)

Adam Walter · Answer

When I drop off my 3 day notice, I give the tenant 3 options 1. Pay Rent. 2. Move by a certain date and collect $. 3. Do nothing and have sheriff place belongings on the curb. I rented low income apartments and probably only evicted around 20% of the time.The letter gives them reason to call you or pick up the phone. I reach out to the tenant a day after I dropped it off the notice to allow them to cool off and make a decision.

Adam Walter · Answer

I think it might be a little late, but it all depends what your goals are. For me, I’d rather give a tenant $250 and leave on good terms than give my attorney $250 and then have to evict.

Cheza M. · Answer

Unfortunately, the tenant isn’t answering so I guess cash for keys isn’t an option. The PM told me that their lawyer already filed for the eviction

Cheza M. · Answer

I think my PM alreadt sent the notice 2-3 weeks ago and the tenant still hasn’t responded since then. What do you suggest I do at this point? The 3rd option where you get a sheriff involved, that’s possible?

Cheza M. · Answer

I agree, that’s a good point