Introduction
Dealing with a problem tenant who won’t leave? Many landlords face the tough decision of whether to go through a formal eviction or offer a cash-for-keys agreement to encourage a tenant to leave voluntarily. While eviction is a legal process, it can be time-consuming, costly, and stressful. On the other hand, cash for keys can be a faster and cheaper alternative.
In this guide, we’ll break down the differences between cash for keys and eviction, the pros and cons of each, and how to determine the best option for your situation.
1️⃣ What Is Cash for Keys?
Cash for keys is a negotiation strategy where the landlord offers the tenant a financial incentive to leave the property voluntarily instead of going through the eviction process.
📌 How It Works:
1️⃣ The landlord and tenant agree on a move-out date.
2️⃣ The landlord offers a cash payment upon the tenant vacating the property in good condition.
3️⃣ The tenant hands over the keys and moves out without legal action.
✅ Pros of Cash for Keys:
✔️ Faster Process – Avoids months of eviction court proceedings.
✔️ Lower Costs – Typically cheaper than legal fees and unpaid rent losses.
✔️ Less Property Damage – Encourages tenants to leave the unit in better condition.
✔️ Avoids Legal Battles – No court involvement means less stress and hassle.
🚫 Cons of Cash for Keys:
- Upfront Payment – You must offer money to incentivize the tenant to leave.
- No Guarantee – The tenant could still refuse or delay moving out.
- Moral Dilemma – Some landlords dislike the idea of “rewarding” bad tenants.
✅ Pro Tip: Offering just enough money to motivate the tenant (often equivalent to one month’s rent) is a smart negotiation tactic.
2️⃣ What Is the Eviction Process?
Eviction is a formal legal process where a landlord removes a tenant who has violated the lease agreement or failed to pay rent.
📜 Eviction Steps in Missouri:
1️⃣ Serve a Notice to Vacate – Depending on the reason, this could be a 5-day notice (non-payment) or 10-day notice (lease violation).
2️⃣ File an Eviction Lawsuit – If the tenant doesn’t leave, the landlord must file in court.
3️⃣ Court Hearing & Judgment – A judge will determine if the tenant must leave.
4️⃣ Tenant Removal by Law Enforcement – If the tenant refuses to leave, the sheriff may physically remove them.
✅ Pros of Eviction:
✔️ Legally Removes the Tenant – Court orders ensure the tenant must vacate.
✔️ Potential for Back Rent Recovery – In some cases, landlords can seek unpaid rent.
✔️ Prevents Future Issues – Ensures bad tenants don’t continue occupying the unit.
🚫 Cons of Eviction:
- Expensive – Legal fees, court costs, and lost rent add up.
- Time-Consuming – The process can take 30-90 days or longer.
- Risk of Property Damage – Angry tenants may damage the unit before leaving.
- Stains Your Reputation – Public eviction records can create tenant-landlord conflicts.
✅ Pro Tip: If the tenant is already severely behind on rent or refuses to negotiate, eviction may be your only option.
3️⃣ Cash for Keys vs. Eviction: Which One Is Right for You?
📌 Choose Cash for Keys If:
- You want a quick resolution and minimal stress.
- You are willing to pay a small amount to get the tenant out without legal fees.
- The tenant is willing to cooperate and leave peacefully.
📌 Choose Eviction If:
- The tenant refuses to move out or has broken lease terms repeatedly.
- They owe a large amount of unpaid rent and you plan to seek recovery.
- You need legal protection for future disputes.
✅ Pro Tip: Always try cash for keys first, as it can save time and money compared to a lengthy eviction.
4️⃣ Steps to Offering Cash for Keys
If you decide to try cash for keys, follow these steps:
1️⃣ Talk to the Tenant – Approach them respectfully and explain the offer.
2️⃣ Make a Reasonable Offer – Typically one month’s rent is enough to persuade them.
3️⃣ Create a Written Agreement – Outline the terms, move-out date, and payment conditions.
4️⃣ Inspect the Property Before Payment – Ensure they leave the unit clean and undamaged.
5️⃣ Complete the Key Exchange – Once everything is in order, provide payment and collect the keys.
✅ Pro Tip: Put everything in writing to avoid legal disputes later.
Conclusion
Both cash for keys and eviction have their place in rental property management. While eviction is the legal route, it can be expensive and time-consuming. Cash for keys is often a faster, more cost-effective alternative that benefits both the landlord and the tenant.
If you need to sell a rental property fast—whether it’s occupied or not—consider selling to a cash buyer to avoid further losses.
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