Cash for keys: how to pay a tenant to move out
Cash for keys is a written agreement in which the landlord pays a tenant an agreed amount to leave by a set date and hand back the keys with the unit in an agreed condition. It can be faster and cheaper than an eviction, but only when the agreement is in writing, the tenant signs it freely, and the money is paid after the unit is empty.
What is cash for keys?
It is a negotiated move-out. The tenant agrees to leave by a date; the landlord agrees to pay a sum when the unit is returned. Both sides give up something: the tenant loses time in the home, and the landlord loses the amount paid but avoids court filings, a sheriff's date and weeks of lost rent.
It works best for a tenant who has no plan to fight and just needs money to move, and for an owner who needs the unit back soon (for a sale, a renovation or a tenant who has stopped paying).
How does it compare with an eviction?
| Cash for keys | Eviction | |
|---|---|---|
| Time to get the unit back | The move-out date you agree on. | Set by notice periods, court dates and the sheriff. |
| Cost | The agreed payment plus a quick turn. | Court fees, possibly a lawyer, and rent lost while it proceeds. |
| Condition of the unit | You can require it, in writing. | Often worse. |
| Record | No court judgment. | A filing the tenant must explain to future landlords. |
Example a made-up tenant owes two months at $1,300 and the owner expects another two months before an eviction finishes, so about $5,200 of rent will never be collected plus court costs. An offer of $1,500 for a move-out in 10 days costs less and returns the unit sooner. Your own numbers will differ.
What should the agreement say?
- Names of everyone on the lease, the unit and the date of the agreement.
- The exact move-out date and time, and the keys, fobs and remotes to be returned.
- The payment amount and when it is paid: on key return after a walkthrough, never before.
- The condition required: broom-clean, belongings removed, no new damage.
- What happens to rent and the security deposit: whether unpaid rent is forgiven, and that the deposit is handled under your state's rules separately.
- That the tenant leaves voluntarily and has had time to read it.
- What happens if the tenant does not leave: the agreement ends and you may continue with the normal legal process.
- Signatures and dates from the tenant and from you.
Do not threaten, hint at consequences you cannot deliver or promise anything you do not mean. Pressure can void the agreement and create a bigger problem than the one you started with. A lawyer who knows your state's tenancy law can check the draft for a small flat fee.
What local rules could limit it?
Some cities with rent control or just-cause rules regulate buyouts: they may require specific notices, a waiting period before the tenant signs, or a filing with the city. Some also limit how and when you can offer one. Check your city and state before you make an offer to a tenant in a regulated building.
For tax, ask your preparer how to record a payment you make to a tenant to leave. IRS Publication 527 says that when a tenant pays you to cancel a lease, the amount is rent, but it does not address a landlord paying a tenant to move out, so this guide makes no claim about how your payment is treated.
What do I do after they leave?
- Walk the unit with the tenant and the agreement. Photograph everything.
- Take the keys and change or rekey the locks.
- Pay the agreed amount in a way you can prove, such as a bank transfer or a check with a memo.
- Handle the deposit and any items left behind under the usual rules (see belongings left after move-out).
How DoorKeeping handles it
The signed agreement, notices and photos live as documents on the lease, the tenant ledger shows what was owed when the agreement was made, and a payment you make goes through your own bank as a bill you approve. Ask Claude or ChatGPT for the lease end date, balance and deposit before you decide an offer. Rent and payments stay in your own bank accounts. DoorKeeping never holds your money and sends a payment only when you approve it.
Sources
- IRS Publication 527: Residential Rental Property, read Oct 30, 2026
- DoorKeeping: Connect Claude or ChatGPT (steps and tools list), read Oct 30, 2026
Questions
- Is cash for keys legal?
- Generally yes where tenants and landlords may agree to end a tenancy early, but some cities regulate buyouts in rent-controlled or just-cause housing. Check your city and state first.
- When should I pay?
- After the unit is empty and the keys are returned, ideally after a walkthrough. Paying in advance removes the tenant's reason to leave.
- Does it replace the security deposit rules?
- No. The deposit is handled separately under your state's statute, unless the agreement and the law allow something else.
- What if the tenant refuses?
- Nothing is lost by asking. Continue with the notice and court steps your state requires, and never lock out the tenant or remove belongings yourself.