Basically, what your stating is that both tenant and landlord are in fault of attempting extortion? One is extorting the other, vise versa. Although, the tenant who has not paid rent or utilities in x amount of months, technically isn't "attempting" extortion but, in fact already is in the act of extorting the landlord. Now, if I have a non compliant tenant with back rent that could run upwards of thousands of dollars, my cash for keys offer would be known as an incentive or buy out for the tenant to relocate in the RE business.
I'm a business owner before a landlord. My properties/rentals are my business. I operate my properties as I would any other business. Myself being a "landlord" is the role I play under being a business owner. There is no legal repercussions that I or the tenant can endure as long as the appropriate paperwork and agreement meet both of the parties agreement. In fact, cash for keys is equivalent to a buy out, and unlike the court system you don't have to worry about the uncertainty if this tenant will ever leave. Actually, there are programs based around this concept and banks, lenders, agents,and home owners use the cash for keys process all the time.
There is no legal recourse like said before. The legal recourse would be the eviction process I would have to go through and have been through numerous times. This includes hefty attorney fees, clerk fees, filing fees, sheriff fees, no back rent awarded, and the damage done to my property due to the negligent and spiteful tenants. The negligence of the property can cost thousands alone when said and done. I have had cooper pipes removed from my property, appliances damaged and stolen, boiler, hot water heater and laundry stolen or destroyed. Now can I bring up charges of theft and vandalism. That's becoming entirely to technical such as extorting.
Lock-outs, utility shut offs are self-help evictions” and are illegal, cash for keys is not. No one has legally been brought up on charges of extortion for cash for keys in the 3 states I own properties. I'm not saying your wrong, maybe where you invest or your state would consider it extortion. But, I believe extortion is a strong word to associate a RE incentive/buy out to get an unwanted guest out of your house. Again, just my opinion and experience.
Definition:
Extortion - The practice of obtaining something, such as money or something of value, through force, threats, fear, or violence.
Synonyms: blackmail, shakedowns, fraud, stealing, or racket.
NON of this transpires when I offer cash for keys. It's a civil environment with no aggression or violence.