Cash-for-keys as an eviction alternative

Getting unwanted tenants out of your apartment units can be one of the most frustrating experiences a landlord can go through. Whether you want to give them the boot to rehab the unit or want them out because they aren’t paying their rent, its not a fun experience. The most common method used to do the job is the eviction. An effective method, for sure, but an expensive one. Legal fees, rent loss and value-of-time costs tend to rack up in a hurry.

The next time you need to move out a tenant, consider an alternative: cash-for-keys. This method, commonly used by banks in foreclosure situations, can be very fast and relatively cheap. The basic premise is that rather than going the route of eviction, you offer a cash settlement to the tenant if they are out of the unit by a specified time. Of course, the actual amount of the settlement depends on the situation. At first glance, many landlords scoff at the idea, for many reasons. Such an attitude is, however, rather shortsighted. Consider the following:

• It’s fast - This method can potential get the tenant to move out in a matter days due to the financial incentive. Compare that to the three months a knowledgeable tenant can stretch an eviction out.
• It’s cheap - Offering a tenant $250 to move out is far cheaper than any eviction. Paying a professional to handle the process will run you $300 alone. If you account for lost rent and tenant damage accrued during the eviction process, the choice is obvious. Even if you have to offer more than $250 to get the tenant to move.
• It’s easy - Going through the process of eviction not only takes time and money, its a pain in the butt. Especially if you are representing yourself in the eviction. It’s also easier on the tenant. Many tenants would be willing to cooperate with you and move out, but they don’t have the money to make a down payment or move to a new place.

When you come down to it, there is no reason not to try this method. It’s cheaper, it’s faster and it’s quite simply a better arrangement for both you and your tenants. It doesn’t always work and it isn’t for ever situation, but its always worth a try.