No Cash For Keys If You Don't Pay Your Rent

By
Property Manager with HomePointe Property Management, CRMC 00691121

I recently became aware of a local Sacramento Property Manager that claims to offer cash for keys to tenants that do not pay their rent.  I am withholding the name of this large property management company.

I think this is a bad idea.  If the word gets around that a property manager and property management company will offer cash for keys rather than evict, it may interest other tenants of that property manager to try and score some cash if they cannot pay the rent.  Maybe it is just the return of their deposit, but it is a reward for breaking the agreement none the less.

You can rest assured that HomePointe Property Management will evict any tenant that stays in a property without paying their rent.  We will do our best to obtain a judgment against them and get that judgment on their credit report so other property owners and property managers can be warned about this bad actor.

At HomePointe we try to be a good neighbor to the investment community.  We do not recommend that our clients shortcut such matters and allow bad actors to continue to get away with breaking a lease.

 

Posted by

Robert A. Machado, CPM, MPM

HomePointe Property Management

Sacramento, Yolo, El Dorado, and Placer Counties

We manage residential and commercial property.

916-429-1205 x 105

rmachado@HomePointe.com

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Topic:
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Location:
California Sacramento County
Groups:
Property Management
Posts to Localism
Property Managers
National Association of Residential Property Managers (NARPM®)
Rental Agents and The Single Family Rental Market
Tags:
evictions
cash for keys in rentals

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Rainer
133,351
Bryan Watkins
LRA Real Estate Group - Mesa, AZ

Robert, interesting on cash for keys for renters. I think it would be so much work to move that a few huncred dollars would not be a large difference, but I am not sure.

Jun 13, 2010 05:45 PM #1
Rainmaker
811,188
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

You have an interesting point.  This is the first time I have head of tenant cash for keys.

Jun 13, 2010 06:03 PM #2
Rainmaker
1,263,496
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

CASH for KEYS is a LANDLORD/Property Management term and philosophy that has been around for hundreds of years.....funny how the real estate industry thinks THEY created it 3 years ago.....the term refers to the landlord RETURNING the deliquent tenant's DEPOSIT when the tenant's belongings are out of the rented property, on the truck and the landlord gets the KEYS to the PROPERTY while the TENANT gets their DEPOSIT BACK.

The TERM as well as the process if PROPERLY USED, can be beneficial for the landlord who wants their property back and the tenant who needs funds to secure another rental home.

Jun 13, 2010 10:53 PM #3
Rainmaker
254,482
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

Wallace, you are talking about standard operation procedure for a regular move out.  I am talking about a delinquent tenant where the owner is trying to mitigate damages to himself.  I get why they do it, but it does leave a bad taste if this is a bad tenant that will continue to wreck havoc on others.

Jun 14, 2010 06:46 PM #4
Rainmaker
1,263,496
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Bob * my point exactly * the landlord wants to MITIGATE their having to go to court and remove the tenant via the eviction process so they PAY them for the property KEYS.....if the tenant's deposit is gone in deliquent rent, there may be some $$$ for the tenant when their stuff is on the truck.

Jun 14, 2010 10:35 PM #5
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Rainmaker
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Robert Machado

CPM MPM - Property Manager and Property Management
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