What is a Cash for Keys Agreement?
A cash for keys agreement is a legal document that is designed to help landlords and tenants mutually agree on the voluntary move-out of a residential tenant, in exchange for money. Cash for keys are often used in the eviction process when it becomes clear that a tenancy if over and a former tenant cannot be removed without an eviction judgment. For landlords, this means that a tenant can either agree to leave the legal premises, or the landlord must start a legal process to remove the tenant from the property.
Eviction litigation can become extremely costly, so many landlords look for another solution that does not require them to endure through the costly landlord/tenant court process. The Landlord may offer payment to the tenant in exchange for them vacating the legal premises. In most cases, this means that the tenant will be able to use the money to pay first and last month’s rent on another apartment , thereby eliminating the need for an eviction judgment.
In most cases, the Former tenant will benefit from a cash for keys agreement much like a landlord will. However, for a tenant, deciding to take cash for keys in lieu of an eviction can be a difficult decision. Often times, the tenant may have a right to defend the eviction regardless of whether or not they have paid their rent.
There is often a void between landlords and tenants. This is due to the inherent lack of communication. In some instances, this communication a void can be seen as one that cannot be overcome. A landlord believes that they should be able to evict a tenant that has no legal rights to remain in the legal premise. A tenant, on the other hand, holds their rights to legal status as a defense to the eviction. The ends of the spectrum sometimes cannot meet. In these cases, a cash for keys agreement can be the best option for resolving this conflict.
The Significance of the Agreement Form
The importance of the agreement form cannot be stressed enough. Even where a tenant is adamant that he or she will vacate the premises without requiring any additional incentive, it is still extremely necessary to have the agreement on paper before a tenant vacates. The reasons are threefold: document the agreement, legally protect yourself, and ensure clarity for both parties.
Key Components of the Agreement Form
While it is not required to have a cash for keys agreement, it is a good idea. And while each state will have state specific language that needs to be included in any boarding up or cash for keys agreement (some states require an addendum be included with any legal documents that explains sections of the agreement), there are certain key elements all states should include in a cash for keys agreement form. The agreement should have the parties listed at the top, such as Owner (insert name) and Tenant (insert name). The agreement should include the amount of money being offered to the tenant for the cash for keys, and when said money will be paid (upon keys returned?). It should also include what condition the property needs to be left in. For example, if you want the carpets vacuumed, it should be included in the agreement. It should also include a deadline for when the keys need to be returned to the property. It would be wise to include the deadline in two forms, such as the deadline to move out, and the deadline to return the keys to the landlord. This way the court will see that the agreement was valid.
Utilizing the PDF Format Effectively
The Cash for Keys Agreement often falls to the background in the rush to evict a tenant without a judgment and with little fuss. But, as it is with all legal forms, that form is important enough to spend some time with so it reflects your company and your needs correctly.
A good way to start with the Cash for Keys Agreement is to have it in pdf format. Having the Cash for Keys Agreement in pdf format makes it very easy for you and your tenants to read. You will likely be emailing the Cash for Keys Agreement to your tenants, anyway, so you want to ensure that it comes over in a format they can read and print. Information about your company and the tenant – name, address, etc. – are all good to share so having the Cash for Keys Agreement in pdf format ensures that if something was changed on the agreement, at least the date cannot be changed.
So, the question then becomes, "How do I get the Cash for Keys Agreement in pdf format? Does my company require me to have the Cash for Keys Agreement in pdf format?" The answer is simple: Have your manager or agent fill in the pdf’s fields as needed. They can then save the document to an electronic format that will reduce the size of the document (to email) and ensure that it is in a format that cannot be manipulated but still readable by the tenant.
The other option is to print the document to pdf (a virtual printer rather than a physical printer). Unfortunately, this is exactly what it sounds like: you will print the Cash for Keys Agreement to a physical printer and then pick up the printed page and print it to a virtual printer. This also works good for the manager to sign the agreement which will remove any ability to manipulate the document. However, this does not do the good things mentioned above about keeping the Cash for Keys Agreement readable and editable for the manager but also uneditable for the tenant.
Most of the main internet browsers will allow printing to pdf automatically (if you do not know how to do that, Google it for your particular web browser).
In sum, a pdf Cash for Keys Agreement will make your life easier. It will allow you and your tenant to manipulate the document and give you the flexibility that you need to successful negotiate with a tenant. But, because the pdf will also be editable only by you, it will help eliminate any future complications that may come up with the tenants.
How to Create Your Personalized Agreement Form
If your goal is to use a cash for keys agreement for a lease or rental property you are renting out, you will need to draft a document yourself or use a template. If you use a template, it’s a good idea to alter the fields contained within the template to reflect the laws in your area. You can find a number of cash for keys agreement form PDF templates available through a simple online search. If you draft your agreement from scratch, you will want to do research of your state and local laws to ensure you comply with all relevant legislation. Depending on your state, you may be required to give tenants a chance to correct their behavior before you can offer them an eviction with cash for keys. There should be appropriate fields for tenant information , address of the agreement, the amount of money offered and the different aspects of the tenant’s move-out and final payment. There is a wide variety of software programs, apps and websites that allow you to draft these types of agreements quickly and easily. You should also be sure to get copies of personal identification like a driver’s license or other paperwork that proves the identity of your tenant. Having this documentation will help you if you have any issues later on during the verification process. Ensure you have the appropriate space for: Also be sure to include the date by which the move-out must occur and details about how and when the tenant will be reimbursed for the money provided in the agreement.
Important Legal Considerations
As with all legal documents, the cash for keys agreement form PDF has legal aspects and potential pitfalls that may make it necessary for you to consult with a legal professional. A good cash for keys agreement can be a way to legally evict a tenant without going to court but there are some legal considerations that need to be met. For example, any money paid to the tenant would likely be considered rent or security deposit, not all cash payments are legal, depending on your situation you may need to give them 3-day notice and/or written notice, and there may even be a written contract necessary.
If the lease is about to expire and you want the tenant to leave, in most cases you will just need to send a termination of lease letter. If you have decided to go this route, you will need to make sure you are following all state and local guidelines. If a tenant has broken the lease and you want them to vacate the property, you will need to give them a termination of tenancy notice and in some cases an eviction notice. Depending on your state and city, you will also need to stipulate the reason you are requesting the tenants to vacate the property. Not allowing the tenant enough time to move if they are living month-to-month or in a periodic rental agreement and giving them the cash owed to you is a violation of the lease. You should give them proper notice, which varies from state to state and often city to city.
Where to Locate an Agreement Form Sample PDF
A common question that often arises is "where do I find a copy of a cash for keys agreement form? The answer to that question is two-fold. First, there are numerous libraries of forms available online for free from government and legal organizations. Many individuals, businesses, and even attorneys and other professionals may not always be aware of the depth of legal resources available through the Internet. Legal organizations and major law firms have built vast libraries of forms to allow individuals and professionals alike to save on legal costs with documents and forms available online. Second, many law practices offer a small library available on their websites wherein forms, agreements, and other information are available for download. In law, the devil is always in the details, so while it may be a simple agreement, you would want to ensure a cash for keys agreement is drafted with all aspects of the deal in mind and agrees with your best interests particularly as it relates to your state laws and regulations which may have specific requirements.
Third , there are many laws and regulations on a national, state, and local level that must be abided by when drafting a cash for keys contract and, therefore, no two copies are exactly the same. To this end, reviewing a google search for "California Cash for Keys Agreement" will return a multitude of reliable sources, typically leading to samples on governmental or legal websites, sites associated with law firms, or a combination of the two. This allows individuals and businesses to review the contracts used by other professionals in the industry in that area. When it comes to real estate law and property management, many investors, brokerages, and others find themselves in a similar scenario. While an individual may not be a member of a specific state’s bar association, they may belong to a national real estate investment and management organization. Just as with state attorneys, such national groups often build extensive libraries of forms used the members, to give them a competitive edge.