Cash For Keys
Do you have a tenant who isn’t paying rent? The most common route for getting rid of a tenant who isn’t paying rent is to go through the eviction process.
- Send a 7 day letter (Quit or pay)
- Get a court date
- Schedule a set out
- Set the tenant out
This is the bare bones process for getting rid of a non paying tenant. I am not telling you to skip the traditional eviction strategy.Get a non paying tenant out faster with cash for keys. Click To Tweet
However, this process does not happen overnight. It will take anywhere from 45 to 90 days in a typical scenario. For a tenacious and smart tenant, this process can take MUCH longer! There is a much faster way to get a tenant to move out.
How Cash For Keys Works
One short cut that may work is to offer the tenant “cash for keys”. You basically offer cash for keys or pay the tenant to move out and give you the keys. It is very simple and can be an effective method to get a tenant to willingly move out of your rental.Many tenants will be willing to move out if you offer then cash for their keys. Click To Tweet
Tenants who are delinquent on their rent won’t have the money to move and cash for keys solves this problem. Lack of cash is often the biggest barrier to getting them to move. It is impossible for them to get a new place to live without money.
How Much Should You Pay?
The amount you offer the tenant to move out quickly will vary from tenant to tenant. It is not uncommon to offer at least the amount of a security deposit or two weeks rent. Know what it is going to cost you in lost rent, legal fees, set out fees and damages to the property. If you can pay the tenant to get out and have them promise not to leave anything behind, it will be cheaper in the long run.
In order for the cash for keys to work, you need to put what you expect from the tenant in writing. Be there when the tenant moves out and hand them cash on the spot if the tenant complies.
Advantages Of Cash For Keys
It may just really drive you crazy to pay the tenant to move out but this is business. Your goal is to get the property back in good condition and get it rented again quickly! Eviction is expensive and takes a long time. You could be out three or four months rent plus all the other fees. That is a lot of money. Paying the tenant a security deposit is a lot cheaper in the long run!
Finally, Why Use Cash For Keys
Remember that most people do not intentionally not pay rent. Life happens and the end result is that you don’t get paid rent. Allow these people some dignity so that they can move on. You get your property back quickly and you minimize your losses.
Want to know more about Probate Investing and how that works? Click here to check it out.
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