If you’re a landlord looking for a faster, less stressful way to get tenants to move out, or a renter who’s been offered money to leave, you’ve likely come across the term “cash for keys.”

Today, we’ll break down exactly what cash for keys means, how it works, and why it’s often a smarter, more cost-effective alternative to eviction. We’ll also cover legal tips, real-life examples, and give you access to a free agreement template you can use.

Whether you’re a property owner or a tenant, understanding this process can save you time, money, and unnecessary stress.

What Is Cash for Keys?

Cash for Keys is a voluntary agreement where a landlord pays a tenant to move out and return the keys by a set date. The agreement should be documented in writing, usually requires the unit be left in good condition, and helps both sides avoid the cost and stress of formal eviction.

How Does Cash for Keys Work?

The process is simple, but it requires clear communication and proper documentation. Here’s how it typically goes:

1. Initiate the Conversation

The landlord reaches out to the tenant to explain the offer. This should be done respectfully and without pressure. The goal is to find a solution that works for both sides.

2. Agree on Terms

Both parties agree on the amount of money and the move-out date. Tenants often ask for enough to cover moving expenses, a new security deposit, or first month’s rent elsewhere, so it’s important to be fair and realistic.

3. Document the Agreement

Once terms are settled, everything should be documented. The written agreement should include the payment amount, move-out date, and any specific conditions.

4. Inspect the Property

Before any money is exchanged, the landlord should do a walk-through to confirm the unit is clean, undamaged, and all personal items have been removed.

5. Exchange Keys for Cash

If everything is in order, the tenant hands over the keys and receives the agreed-upon payment. Both parties should sign a final acknowledgment to confirm the exchange.

When and Why Landlords Offer Cash for Keys

Evictions can be time-consuming, expensive, and emotionally draining. Legal fees, missed rent, and court delays can quickly add up. Offering cash for keys can:

• Help regain possession of the unit faster
• Reduce legal and administrative costs
• Minimize property damage from disgruntled tenants
• Maintain a more amicable relationship

This strategy is especially common when landlords are dealing with non-paying tenants, inherited tenants, or planning a major renovation or sale. It’s also a practical alternative when issuing a 30-day notice to vacate, offering a smoother and quicker resolution than a formal eviction process.

Cash for Keys vs. Eviction: Key Differences

Eviction is a legal process that can take weeks or months. It often involves court hearings, lawyer fees, and potential damage to the property. On the other hand, cash for keys is a private agreement with no courtroom involvement.

Here’s how they compare:

Factor	Cash for Keys	Eviction
Cost	Typically $500–$2,000	Legal fees + lost rent
Time	Days to weeks	Several weeks to months
Control	Negotiated privately	Judge determines outcome
Tenant Record	Not impacted	May show up on rental history

What Tenants Should Know Before Accepting

If you’re a tenant offered cash for keys, don’t rush and take time before making your decision. Here are a few things to consider:

Know Your Rights

Tenant protections vary by state, and some offer strong safeguards. You may have more options than you realize, so it’s important to understand your rights before agreeing.

Negotiate the Offer

Don’t be afraid to ask for more money, especially if your moving costs are high or if you’re dealing with a tight rental market. The amount is often negotiable.

Get Everything in Writing

A verbal agreement can lead to misunderstandings or issues later. Ensure all terms, including the payment amount and move-out date, are clearly documented.

Consider the Timing

Do you have a new place lined up? Make sure you have enough time to find a suitable home and plan your move.

While cash for keys can be a win-win, disputes can sometimes arise during negotiations. If that happens, having a strategy to effectively handle tenant disputes can help keep the process as smooth and stress-free as possible.

Is Cash for Keys Legal in Your State?

Cash for keys is generally legal across the United States, but local laws may affect how the agreement should be handled. For instance, California has specific guidelines for these types of agreements, which can be found on the California Department of Consumer Affairs website.

Some states may require disclosures or impose penalties if the process is used to bypass rent control or harassment laws. Always check with your local housing authority or attorney.

Cash for Keys Agreement Template

A written agreement is essential. It should include:

1. Parties Involved:
   • Landlord: Full name and contact details
   • Tenant: Full name and contact details
2. Property Address:
   • Full address of the rental property
3. Agreed Payment Amount:
   • Specific amount to be paid by the landlord
   • Payment method (e.g., cash, check, bank transfer)
   • Payment date
4. Vacate Date:
   • The date the tenant must vacate and return all keys/items
5. Condition of Property:
   • Tenant agrees to leave the property clean and free of damage (beyond normal wear and tear)
   • All personal belongings must be removed
   • Landlord will inspect before payment
6. Key Return:
   • Tenant returns all keys, garage openers, and landlord property
   • Payment made after key return and satisfactory inspection
7. Voluntary Agreement:
   • Both parties enter the agreement voluntarily, without coercion
8. Legal Compliance:
   • Agreement complies with local landlord-tenant laws
   • Does not replace formal eviction procedures
9. No Impact on Rental History:
   • This agreement will not affect the tenant’s rental history unless eviction is pursued
10. Signatures:
    • Both parties sign and date the agreement to confirm acceptance of terms

Download your free editable cash for keys agreement template here.

Real-Life Examples of Cash for Keys Deals

Example 1: Quick Resolution in Los Angeles

A landlord in Los Angeles has a tenant who is several months behind on rent. Rather than going through the lengthy and expensive eviction process, the landlord offers the tenant $1,200 in exchange for vacating the property within 10 days.

The tenant agrees, and after completing the move-out, the landlord is able to quickly re-rent the unit to a new tenant just two weeks later. This scenario shows how cash for keys can provide a fast, cost-effective solution for landlords who need to regain possession of their property.

Example 2: Negotiation Over Moving Costs

In another situation, a landlord offers a tenant $800 to move out, but the tenant, who is facing high moving expenses and struggling to find a new place in a competitive rental market, counters with a request for $1,500.

After some negotiation, both parties agree on the higher amount. The tenant moves out within a week, and the landlord avoids a lengthy three-month eviction case. This example demonstrates how cash for keys allows room for negotiation and helps both sides reach a fair agreement quickly, saving time and money for both the landlord and the tenant.

FAQs About Cash for Keys

When Cash for Keys Makes the Most Sense

Cash for keys isn’t a loophole. It’s a practical solution for difficult situations. It works best when both sides want a clean break and are willing to communicate honestly.

For landlords, it means saving time and money. For tenants, it offers a fresh start and financial help during a transition.

If you’re considering this route, make sure to do your homework, document everything, and approach the conversation with respect.

Looking for a quick way to create your agreement? Use our free template and take the first step toward resolving your rental situation peacefully.