Cash for Keys Agreements
Being a landlord is difficult even when the tenants make a good faith effort to pay rent and abide by the rules. Yes, it’s expensive for you to fix the plumbing, but it is bothersome for them to have to go to a friend’s house to take a shower, especially when their budget is so tight that they can barely afford the price of a subway ticket, and when they are short on sleep but can’t crash at their friend’s place because they could jeopardize their friend’s eligibility for government benefits if the landlord found out that unauthorized people are staying overnight. Things are much worse when your tenants are intentionally exploiting every legal loophole designed to make it hard for you to kick them out, when they thumb their noses at your efforts to collect rent, even as they intentionally trash your property. During the pandemic era eviction moratorium, some landlords turned to an ostensibly shady but technically legal practice to get rid of nuisance tenants. For help finding legally sound resolutions to disputes with troublesome tenants, contact a Bronx real estate attorney.
How Do Cash for Keys Agreements Work?
The eviction process requires the landlord to formally notify the tenant of a breach of the lease agreement and then follow the legal procedures of eviction in court. It is meant to ensure due process for tenants so that they do not get kicked out of their homes unfairly, but in practice, it is expensive and stressful for all parties involved. With the implementation of the Good Cause Eviction Law of 2024, it has only gotten more difficult for landlords to evict tenants.
During the pandemic, some landlords took matters into their own hands and paid their tenants to get lost. Paying people who are putting a damper on your plans to go away is nothing new in New York City; the Wolf of Wall Street book explicitly states that Jordan Belfort paid his first wife to go away quietly so he could marry Nadine, even though the film adaptation glosses over this detail. It is legal for a landlord and a tenant to sign a cash for keys agreement. Pursuant to the agreement, the tenant agrees to vacate the apartment by a certain date, and the landlord agrees to pay for termination of the lease. The amount the landlord pays is enough to cover the tenant’s expenses of moving into a new apartment.
Is It Simpler to Pay the Tenant to Leave Than to Pay for Expensive Litigation to Remove the Tenant?
Yes, signing a cash for keys agreement is faster and cheaper than going to court, but unofficial arrangements like these can lead to trouble. Landlords and tenants have the right to sign legally binding agreements, just like everyone else does, but before you offer the agreement to the tenant, you should have a lawyer review it to make sure it is enforceable and will not have unintended consequences.
Schedule a Confidential Consultation With a Bronx Real Estate Attorney
A real estate lawyer can help you get out of a troublesome landlord-tenant relationship. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
nyrentownsell.com/blog/guide-for-cash-for-keys-agreement
