What is cash for keys?
In general, “Cash for Keys” is an agreement between a landlord and a tenant whereby the landlord pays the tenant to vacate a rental property in exchange for an agreed upon sum of money at an agreed upon date. The agreement can be negotiated for an early lease termination date for such reasons as a landlord needing to completely remodel a unit, a landlord needing to move into the unit himself, as a condition for the sale of the property, or a new buyer wanting to turn over units to bring rents up to market rents. Many landlords are somewhat familiar with a “cash for keys” agreement that provides incentive for non-paying tenants, and tenants who have defaulted on other lease terms and conditions to move out before being served with eviction notices. The cash for keys agreement is a negotiated voluntary termination of the lease and tenants who accept and comply with the agreement could avoid having an eviction on their record. In many cases the “cash for keys” agreement is a less expensive option for the landlord than the required court process for eviction.
Landlords who want to consider a “cash for keys” agreement may find it advisable to consult the laws for the unit’s particular location or to consult a knowledgeable attorney to determine what circumstances and under what conditions it would be legally permissible to offer such an agreement.