Cash for Keys? - Posted by Rob C.

Posted by Rob C. on April 21, 2005 at 08:47:01:

This is great stuff!
Thank you!


Cash for Keys? - Posted by Rob C.

Posted by Rob C. on April 20, 2005 at 15:43:59:


I received a call from a lady who wants to get rid of her property b/c her tenants are 4 months behind on their month to month lease. She and her husband are getting older and do not want the headache of dealing with the property.

If I sign a contract with herto purchase property, can I go in and offer the tenants “cash for keys” and get them to sign paper acknowledging termination of the lease (and then change locks)? Or do we need to do formal eviction? In Baltimore, MD do they have first right of refusal to buy the proerty?

Rob C. from Baltimore

Re: Cash for Keys? - Posted by IA Jeff

Posted by IA Jeff on April 21, 2005 at 08:32:09:

Assuming you are getting a great deal and know the condition of the property, I would wait until closing and let the tenants be a little suprised that the property has been sold.

4 months? Thats along time to be living rent free.

After closing, hand deliver the notice that the property has been sold and have a discussion with the tenants. If you want them gone tell them they can do it the easy way…make a few bucks and leave the place broom swept within a week or two…or the hard way, and the sheriff will assist with their move. Either way they are moving, so they might as well make a buck along the way. You might not want to tell them that you are the owner, some big bad REI from somewhere else…you are just a guy doing his job and its out of your hands.

I have used this logic with a tenant in the past, and it works. I actually was just the worker bee doing my J.O.B.


Re: Cash for Keys? - Posted by Dan

Posted by Dan on April 20, 2005 at 21:25:28:

A lot of sincerity and good manners will help you out here.

I don’t know if you have agreed to price and terms yet but that might
be a first step. You might want to put a clause in the contract about the
tenant. I would also place a contract value clause since you could wind
up working out a deal with the tenant and get submarined by the

Next, ask the seller for permission to talk to the tenant.

Go and talk to the tenant. But when talking to them LISTEN. They may
be a good tenant underneath and might just have an issue with the
current owners. There might be a lot of reasons. Just listen and trust in
your gut to make a good decision about making a cash for keys vs
something else.

While in the unit make sure to help yourself to a glass of water and ask
to use the bathroom. Two very effective ways to see the overall
condition of the property.

Email me if you need more help. My REAL email is I am sorry about MD law so I can’
answer your right of refusal question.


Re: Cash for Keys? - Posted by jafon2k

Posted by jafon2k on April 07, 2006 at 17:04:18:

Get them out before you close on the house. With contract in hand.Install a contigency clause regarding the tenancy. Talk to a good tenant-landlord lawyer about how long it would take to evict tenants. Get permission to handle the eviction of the tenants prior to closing. You thereby control your risks in the deal. With those items lined up in your favor you are ready to offer Cash for Keys.

Re: Cash for Keys? - Posted by Rob C.

Posted by Rob C. on April 21, 2005 at 08:46:30:

Great info!