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 Member Update
 Cash For Keys: A Solution to Deal With Problem ITenants Outside of the Protracted Legal System
Contributed by King George Property Management Services
have always preferred to handle problematic Keep a record of any emails or text messages. To get the best tenants outside of the legal system. The reality is document retention, I recommend communication with that the court system can take a long time, lawyers tenants in writing by email, letter, or text. In California, there are expensive, and sometimes it is easier for all are laws about recording phone conversations, so this may not parties to just quickly move on. I have found that be an option for keeping records. The absolute last thing you in the past, some tenants realize the benefits of want is to get into an altercation with your tenant regarding a cash for keys settlement and accept it as their “what was said or what was agreed upon.” When you get an best option, while other times tenants prefer to go agreement sorted out, be sure that all parties sign it. Make through the court system. It is not always a sure the wording crystal clear, with no chance for confusion. Once
thing, but here are my top five considerations when looking a tenant has agreed to accept ‘cash for keys’ you can draft a to strike a “cash for keys” deal with your tenants. But before document (Suggestion: seek legal help.) and be sure both the
I continue, let me remind all readers that I am a property manager, not a lawyer or an accountant, so my suggestions should not be considered legal advice by any means. It is always best to seek appropriate legal advice in any tenant / landlord dispute.
Document Control: Put Everything, and I Mean Everything, In Writing
I cannot stress enough how important it is to have all your documentation organized. Everyone has their own methodology but there are some things you should consider. Keep track of when rent was paid. Was it paid in cash? Was it by check? When was it paid? Was it late? Is there a late fee accumulated on top of back rent?
tenant and landlord sign it.
What Exactly is “Cash for Keys?”
Cash for keys involves paying a tenant cash consideration that a landlord provides in order to terminate tenancy and have the tenant vacate the premises. When you say the term “cash for keys” it does not always mean you pay cash out of your pocket. Instead, you can offer to forgive any back rent that the tenant has not paid in exchange for surrendering their tenancy. Another option is paying for movers to help move a tenant’s items. Remember that when negotiating “cash for keys,” take into consideration the amount of the security deposit held. As a landlord, you are entitled to that money for
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