Eviction process vs Cash for keys?

Question

Hello BP Community! I'm looking for some guidance on what's best to get a tenant out as efficiently as possible. I posted last week under the title "How to remove a tenant, "softly"....Here's the update! Tenant is on MTM lease, I provided a 60day notice last week, it played out EXACTLY how I thought it would. She's now stating she will not pay rent the last 2 months and that I'll need to take her to court! I've told her that I hope she doesn't choose that route and as that would be a violation of the lease, at which point, an eviction process can begin. Rent is due the 1st of every month but grace period until 5th, my gut tells me she will not be paying anything for July...At this point what is the easiest? Do I "dig in" and start with a cure or quit notice to begin process after she's late OR do I attempt to offer cash for keys? I just want her gone and to start fresh but I also really don't want to give her money to leave! this would be my 1st time doing either process (eviction or cash for keys), and I hear the WAIT TIME on evictions take forever for Chicago.  Any insight or guidance would be appreciated. thanks

Henry Lazerow · Answer

Start the evection process just so she knows serious and then do cash for keys maybe start at $1000 offer for out in 30 days. I have never had a client actually have to evict but once or twice when buying buildings with old tenants have had to do cash for keys. Eviction can take a long time so its best to avoid if possible.

Sean McKee · Answer

@Kevin Hunter- I’m sorry to hear this. I have unfortunately been in your situation more times than I would care to admit. I can’t back this up with any statistics, but I’d say about 90% to 95% of tenants don’t actually want any kind of derogatory marks on their record. Some might care more than others, but most want to avoid trouble.

You have a few options that don’t involve court, which should be the last resort in a place like Cook County. Cash for keys has already been mentioned and is a great way to get people off quickly and without as much hassle as going to court.

Depending on your relationship you could try and come to a peaceful arrangement. But it sounds like you might be past that point.

You can report them to the Credit Bureaus. There are several ways to do this. But I’ve gotten a number of people to come to their senses this way.If all else fails, then I would file for an eviction. I had a similar situation last year. I served the tenant  a 5 day notice and filed shortly after. The tenant was gone a few weeks later. She might be just seeing if you will call her bluff.

John Warren · Answer

@Kevin Hunter sorry you are going through this. A lot of investors on this forum have focused on nicer areas, so they don't deal with this as much. I am finishing up eviction 6 and 7 for the year, so I am right there with you. If your tenant refuses to pay when you issue the 60 day, you have two options. If you suspect your tenant is actually going to leave after the 60 days, then you can wait it out and just take it on the chin. If you suspect the tenant will drag this out, then I would issue the 5 day notice and proceed to begin the eviction process based on the non payment.

The reality is that evictions are taking approximately 6 months right now if all goes well. That assumes that you have a great attorney and that you moved swiftly. If you miss any steps, things can drag out.

Scott Trench · Answer

I'd do both. Call her up and tell her that it isn't working out. (PLEASE, check with an attorney first  - I don't know your local state laws).

Then, offer her a carefully considered sum of money. Perhaps, "Here's your entire security deposit, plus $2,000 in cash, if you and all your stuff are gone by Wednesday the 13th of July at 5:00 PM." You could tell her that she has until Tuesday morning at 8:00 AM to decide whether or not to accept our offer, at which point the offer ends the eviction process begins, which you will ultimately win with a judgment for the unpaid rent, and she will receive an eviction on her record. "$2,000 plus your deposit back, no questions asked, or an eviction and a judgement on your record?" Make her decide. Once she does, and if she chooses to force you to take her to court, you can proceed to follow the law, and stick to your principles - don't re-offer downstream.The amount will depend on the math for the tenant.  Put yourself in their shoes - what's an amount of money that will make them feel like fighting you isn't worth it?

If she does not accept your offer, then you can begin filing on Tuesday (the next business day) and you know that you offered her a way out. Make sure you follow the eviction process to the letter, and treat the tenant professionally.

It's a shame that some people are so horrible that we literally need to pay them to go be someone else's problem. But, many landlords will experience this at some point in their careers.

Paul De Luca · Answer

@Kevin Hunter

I agree with @Scott Trench. Make the tenant an offer so good it will be hard for them to refuse but you will still come out ahead as opposed to going the eviction route. Sometimes you have to swallow your pride and make the most prudent move for your business.

If the tenant still refuses, start the eviction process and if she ends up leaving 60 days from now on her own accord then you dodged a bullet.

Eviction process vs Cash for keys?

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