My first cash-for-keys experience was a resounding success! If you’re unfamiliar with the cash-for-keys concept, let me explain why it’s such a win-win strategy for both landlords and tenants. As a landlord, you often want a tenant out quickly but dread the costly and time-consuming eviction process. On the tenant’s side, they may not have the means to leave the property on their own. That’s where the idea of cash-for-keys comes in—essentially offering a financial incentive for tenants to vacate the property peacefully.
Let me share a recent success story from our fourplex property, where the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) has been a key part of our investment strategy. We had a long-term, inherited tenant who, despite being a great resident in the past, had started falling behind on rent and neglecting the upkeep of common areas. His unit began resembling a hoarder’s haven. With only six months left on his lease and considering the significant investments we were making to improve the property, it became clear that we needed to make a change.
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I decided to present him with a cash-for-keys offer. After having a verbal conversation, I followed up with a written message through Hemlane to ensure everything was documented. The proposal was simple: rather than going through the eviction process, I offered him a financial incentive to move out early.
The offer I made was straightforward. I provided him with a residential lease release form that outlined the agreement. He would vacate the property by a specified date, surrender all keys, and leave the unit in an acceptable condition. In exchange, I would pay him $500. The form also specified that if he didn’t meet the agreed-upon terms, the deal would be void, and any consideration paid would be returned to me.
The conditions were clear:
- He had to sign the agreement by March 15th.
- He had to vacate the property by March 31st.
- All personal belongings had to be removed by the move-out date, with any leftover items considered trash.
The tenant signed the form through DocuSign, and by March 31st, he had moved out. We were ready with a crew the following week to clean out the unit, and they filled an entire 30-yard dumpster with what was left behind.
Cash-for-keys is a strategy I highly recommend if you find yourself in a similar situation. It’s a proactive approach that minimizes conflict, speeds up the process, and saves you the legal costs associated with an eviction. In the context of the BRRRR method, where time and efficiency are crucial, cash-for-keys can help keep your investment strategy on track without unnecessary delays.
Incorporating the BRRRR method into your real estate investing strategy can sometimes involve tough decisions like this one. But by staying focused on your long-term goals and using smart tactics, you can navigate these challenges successfully.
Common FAQs using the BRRRR Investing Strategy:
I use and highly recommend DealCheck.io.
With none of your own money, yes. Partnerships are the best way to grow your portfolio without using your own money. Utilizing creative strategies like Hard Money (via W2 Cap Capital LLC) will allow you to fund the purchase and rehab with only 10% down (sometimes 0% down given the opportunity).
Off market. If you don’t know how to pull an off-market list or the mailers you’re sending aren’t producing the results you want, watch the free video at https://FindYourNextBRRRR.com to see exactly how I’m finding our most profitable properties.