This morning I filled out eviction papers (in my home office) for my only deadbeat tenant that did not pay June rent. Since he and his wife have been with me for over a year, I gave them two extra weeks to pay this month. The required 7-day P/Q notice was posted 8 days ago and after receiving that notice, they called and said rent and late fees would be paid no later than Tuesday. For whatever reason, they are not returning my phone calls now.

What I am debating now is whether to go ahead and file the eviction papers (cost $257.00 just to file + $50.00 later on) OR should I knock on their door and try to offer cash for keys if they can vacate before June 30th.

If file the papers, it will take an additional 2-3 weeks to get them out. If they want their day in court, it will take even longer.

This tenant consist of husband/wife and 4 children under the age of 6. And they are very nice people too.

Every situation is different as you are aware. Not knowing what kind of relationship you have with them.

When I give a decent tenant a chance to pay and they don't, I file the eviction.

I have offered cash for keys years ago but not lately.

Dave (MO)

I've never done cash for keys but I've been upset enough when I've given a tenant time to pay owed rent/late fees and they lie regarding the date they'll be paying these (as yours have) that I just go ahead and file for the eviction.

If you do a cash for keys deal how much would you offer them? If they have to find another place by June 30th (unless they have family they can stay with) they'll likely have to come up with more than what your eviction costs would be for first month rent and the deposit. If they had all these funds they could pay your rent.

In other words, what would you offer them to vacate the house?

Gail,

They paid a $500.00 deposit over a year ago. I am willing to offer 1/2 of this amount which is the approx. cost to file the eviction papers.

Mr./Mrs. Tenants: I can pay you $250.00 to move by June 30th or I can pay the District Court and the Constable will move you all at later date. Which option would you all prefer?

(This is a large 3/1 house that has all of the bells and whistles that tenants like and will re-rent quickly once it becomes vacant).

If you offer cash for keys you are admitting you have lost control and at their mercy,

Let's say they already owe you $1000.

You give them $500 cash for keys to move out.

Do they still owe you the original $1000?

Do they now owe you $1500?

Does cash for keys erase all of the money they already owe to you?

Does cash for keys prevent you from charging them for damages to the unit?

Just some questions to consider.

Here's another option which might work:

Tell them they need to leave, either eviction or move out voluntarily. There is no other option. If they need some moving money(cash for keys), you can front them this money. However, this money will be ADDED to the total amount they owe you. If they don't repay you according to your payment plan, you can pursue them in court or collection agency. In other words, "cash for keys" would not be free money. I'd love to hear others chime in on this idea.

As for me, in the past I have helped people pay for a moving van and storage. But these days, I am more aggressive on just filing eviction and letting the system work. If they are foolish/un-resourceful enough to allow themselves to be evicted, they will soon face the harsh consequences of their decisions in the real world.

I agree with Vee. Offer the $250 if they are out by SUNDAY at NOON, and the unit is CLEAN and UNDAMAGED.

Give them a copy of what you will file with the court.

My tenant just called and said he has made a rent deposit in my bank account, however, the deposit was $100.00 short. He said the balance would be paid within 24 hours. I checked the bank account and confirmed what he told me on the phone.

So, I guess this post is over with,..for now at least.

Roy,

ZERO TOLERANCE works!

1st mistake was allowing 2 weeks.

2nd mistake was not filing the first day you can.

"Talking" only leads to more stories and the LL caving. They know that.

I recently broke this rule - 9 year res who has suffered health problems in the past. Pre-ZT Wifey let her fall $2-3500 behind each time "because she always got caught up". She missed her Friday payment so I stopped by on Sunday to see if she was OK (alive). Her atty called Monday morning to tell me to stop harrassing her.

Never again will we let someone fall behind. For the past 2 years it is working beautifully and has revolutionized our business. People actually PAY!

BRAD

Every time I hear these stories, 99% of the time it ends up with the LL being the "nice guy who finishes last and no good deed goes unpunished".

I know the post is "over for now" but I wouldn't offer cash for keys. If anything, I would say "look, get out this by this weekend and MAYBE I won't file on your butt". That's the "cash for keys" portion - clean up and get out ...

I just did that for an ex tenant and she did "ok" on the move out. It needs minor cleaning but I'm "waiving" the $100ish bux that she owes me for the stayover since she did most of it. Other than that ... it would be "off to small claims". I told her that as well as "make sure you are out by Sunday or Monday AM I'm physically evicting you with the Marshal - please don't MAKE me do that".

I'm more of the "get out and take your crap with you and I'll still sue you" kind of guy... and if you don't like that then I'll take you to court, WIN and still evict you, your dog(s) and your kids since you think you are entitled to everything in the world.

Roy: I too am late here. The 250 sounds like a good option.

I agree with the Zero T folks as this T will likely be in arrears again soon and the vacancy could be alittle harder to fill with a better candidate for the "August just before school starts" profile.

I suggest that you give them notice that you are non renewing their tenancy.

Cash for Keys is strictly a Business Decision. When you consider the total cost of doing an eviction (in my case it usually runs around $2,000.00), offering cash to get the tenants to move NOW as opposed to 3 weeks or later, is IMO a wise business move. It all revolves around the business concept of 'Time is Money'. Plus, all I am doing is refunding 1/2 of their deposit back to them.

Jeff/CO - I say meet with them so you knowwhat's going on. Yes,they know rent was due. Yes, they failed to pay. But I want to know why. Was it because they chose to pay for something else, was work slow, etc. Then, I can judge whether or not this was one time only or is going to be the beginning of the end.

LoriC/CO - some of us live in a world where zero tolerance just isn't going to work. My tenants pay me my rent. Sometimes there are hiccups. I get compensated for those. I am hands on - I do not want to not know my tenants so I generally know when it's time to play hardball and when I can work with them.

Nicole, my leases state that there are no acceptable reasons for non-payment of rent. Talking to the tenant, to me, would make me feel as though I am in a weaker position. There is really nothing to discuss.

Roy, I don't care what it costs to remove a non-paying tenant. Giving them cash to move out (even if it's their deposit money) just feels wrong to me. And the tenant basically gets away witjh bad behavior.

But we all run our businesses differently.

Redwoods, if that works for you, great. But some of us have a big problem with a tenant not honoring their end of a legal agreement and then being able to walk away and leaving me with an unplanned vacancy or worse.

When a tenant fulfills their obligations I want them to be happy. When they fail to do that, I don't want them to be happy.

I wouldn't be happy with rewarding a bad tenant with the option of creating a problem and then being rewarded with cash. Instead, I follow the legal and collections process. Their actions have consequences.

Roy, I don't care what it costs to remove a non-paying tenant. Giving them cash to move out (even if it's their deposit money) just feels wrong to me. And the tenant basically gets away witjh bad behavior.

Jeff - That statement tells me you are allowing tenant issues to become "personal issues" with you. I am running a BUSINESS here and the first rule of Business is to keep your personal emotions out of it and stay focused on what is really important here,...keeping the cash flow spigot wide open and moving in my direction. I will do whatever it takes to keep the tenant cash flowing in my direction.

Cash for Keys can make all kinds of economic sense, Jeff, and that's the reason we are in this game. Money.

Not to prove points or be right or teach someone a lesson or help some other landlord down the road, although that's all good when it works out like that.

But when things are going south, we want to act fast to get someone out: so they don't damage, so we can fix and re-rent, so we can move on with our lives.

begrudgingly...yes. if you can get a deadbeat out NOW it's a smelly deal but one that must be considered. the deal includes a statement that they asked for the cash, are leaving willingly for compensation, have removed all valuable personal property from the home and that possession is restored to the owner. they get CASH when ALL your terms are met and AFTER they have signed a memo stating they are out completely...NO EXCEPTIONS.

Roy, I beg to differ. I keep emotion out of the process. I match the facts of the situation to the event, and to the lease. It's like a machine.

Break your lease early? What does the lease say? That is the process that I follow. Don't feel like paying your rent? You will be served on the 2nd, and eviction will begin on the 6th like clockwork.

Do we need to do an actual eviction, get the sheriff involved, and the place is a mess? Refer the case to recover the costs to the collection agency. Willful damage is reported to the police. If there is any legal action I don't hesitate to litigate when I'm right.

I have a reputation with my tenants for being fair, fast to help, responsive, and a non-nonsense approach to transgressions.