Cash for keys

Cash for keys is a voluntary deal: the landlord pays the tenant an agreed amount, and the tenant moves out by a set date, leaves the unit broom-clean and hands over the keys. Payment happens at the walkthrough, not before. It's often faster and cheaper than an eviction, which can take months and cost legal fees plus lost rent.

When it makes sense

The tenant is behind on rent and an eviction would take months.
You're selling, renovating or moving in, and the tenancy has no end date soon.
The relationship has broken down but the tenant is willing to leave.

It doesn't fit when the tenant is dangerous or destroying the property; talk to a lawyer then.

Setting the amount

There's no standard figure. Landlords usually compare the offer with what an eviction would cost:

Months of lost rent until a court judgment and lockout.
Court filing fees and attorney fees.
Repair risk if an unhappy tenant leaves the unit in bad shape.

A common structure is moving costs plus a deposit for the next place, sometimes with a bonus for leaving early. Many landlords also waive unpaid rent.

What the agreement should say

Names, the property address and that the agreement is voluntary.
The move-out date and time, and the amount to be paid.
Condition: empty of belongings and trash, broom-clean, no new damage.
Payment method, paid at the final walkthrough once keys are returned.
What happens to unpaid rent and the security deposit.
Mutual release of claims, if both sides want one.
Signatures and dates from both parties.

Do a move-out inspection with photos at the handover, and record the payment and any rent you waive in the tenant ledger.

Local rules

Some cities regulate tenant buyouts. San Francisco and Los Angeles, for example, require written disclosures to the tenant before a buyout and filing with the city. If your unit is under rent control or just-cause protection, check local rules or ask a lawyer before you make an offer.

Keep the paper trail clean. Record waived rent, the buyout payment and the deposit settlement in the tenant ledger, and close it with an itemized deposit letter. Pro covers all your tenants for $7 a month.

Open the tenant ledger

Questions

Is cash for keys legal?

Yes, as a voluntary agreement. It must not be pressure or harassment, and some cities add disclosure and filing rules.

Should I pay part upfront?

Most landlords pay everything at the walkthrough after the keys are returned. A small upfront amount for moving costs can help if the tenant can't afford a truck.

Is the payment taxable?

For the landlord it's generally a deductible expense of the rental. For the tenant the tax treatment can vary; they should ask a tax advisor.

General information, checked October 31, 2026. Not legal advice; eviction and buyout rules vary by state and city.