Cash for Keys in Los Angeles

[A Bee]

Bigger Pockets Community!

Hello once again.  I purchased a 4 unit apartment building a few years ago in Los Angeles.  All four units are 2 bedroom and 1 bath, and in good condition.  Three of the tenants are around market rents however one unit, is paying about $300 - $400 below market a month (market rent being approximately $1,550).

The tenants in the below market rented unit have been there for over 5 years and have a senior citizen (I believe) and young child living in the unit.

I am considering offering them cash to vacate their unit in order for me to rent it out at market rents, after probably making about $2,000 - $3,000 worth of improvements to the unit.

I am wondering what do you deem is the right offer in terms of the amount I should offer them considering how much they're paying now and the general apartment rental market in Los Angeles.  

And what are some strategies/explanations/rationale to mention to the tenant as the reason why we are offering cash for them to vacate?

Thank you very much!!

A