With the California Eviction Moratorium coming to an end on June 30th, along with the end of the CDC Eviction Moratorium, many landlords are going to be moving forward with evictions, but other landlords will be thinking about arrangements like cash for keys instead.
The big question is which option is better?
In this article, we will answer this question and provide you with a breakdown on evictions vs. cash for keys, and which option landlords should be considering.
Cash For Keys
With cash for keys, a landlord will save the time, money, and hassle of eviction because the landlord will provide their tenant with a ‘cash reward’ if they agree to move out of their rental property by a specific date.
To get a cash for keys agreement to work, the landlord has to offer their tenant a financial incentive that’s going to be worth their time. This is why a landlord must offer their tenant a minimum of $500, to $5000 because this amount of cash could be what the tenant needs to start over and it also removes a potential ‘problem tenant’ from the rental property.
Tenants must be made aware that the landlord will be enforcing the cash for keys agreement and if they don’t move out, a tenant must be aware that they will waive their right to trial.
This also would give a landlord the ability to get a write of possession promptly, but a landlord should speak with their attorney first before creating a cash for keys agreement.
Let’s be clear, evictions are the last thing that landlords want to go through because they can cost up to $5,000 and take more than 30 days to complete.
In California, evictions can take an average of 30-75 days (or longer) because it’s not uncommon for tenants to use every ‘legal tool’ available to extend their time in the property for as long as possible.
Ultimately, a landlord's decision to choose cash for keys vs. eviction depends on their situation.
Regardless of which choice a landlord makes, they should consult with their attorney to make sure that they are following all state and local laws.
Contact GoldenWest Management
For more information on cash for keys vs. eviction, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.
Wednesday, August 4, 2021
Since the onset of COVD-19 in March 2020, both renters and landlords nationwide have had to live with the reality of an eviction moratorium.
Friday, July 2, 2021
Sensing that the state of California was sitting on the edge of an ‘eviction cliff’, Governor Gavin Newsom has signed a last-minute bill (AB 832)