26 Oct Tenant Relocation Agreements and Buyouts
Tenant Relocation Agreements and Buyouts
Over the course of the years, Landlords have been approaching tenants in order to entice tenants to vacate their properties. Why? Because most likely the property/unit is under market, undervalued and/or in a distressed condition. Thus, to encourage the tenant to vacate the property without going through the eviction process, the landlord will approach the tenant with a relocation offer/agreement. Such an act by the landlord can be beneficial to both parties.
Different people call the above act different terms “cash for keys” “relocation offer” “relocation agreement” “money to leave” “money to vacate” “buyout agreement”. Essentially, they all mean the same thing, the landlord will pay the tenant a certain amount of money, and in return the tenant will vacate the property (return the keys) with a check.
Such an agreement is purely voluntarily, meaning a tenant does not have to accept such payout of money with force and reserves the right to reject or refuse to engage in such an offer. However, many tenants are willing to entertain such agreements, because rather than just leaving, you are now leaving with cash in your hands.
The biggest signs of when a landlord wants to engage in such an agreement is when a new landlord purchases the property or the current landlord decides to have ulterior intentions with their property, such as taking it off market or moving into the property. These types of agreements are very popular within rent control properties, as these properties are under strict eviction regulations.
The key elements of a cash for keys agreement may include:
1. Offer: The landlord offers a specific amount of money or other incentives to the tenant in exchange for voluntarily moving out of the rental property by a specified date.
2. Agreement Terms: The agreement outlines the terms and conditions, such as the move-out date, the condition the property should be left in, and any other specific requirements.
3. Timing and Payment: The timing of the payment, whether it’s provided before the tenant moves out, upon successful move-out, or after a specific inspection, is usually specified in the agreement.
Relocation Amount
When a cash for keys agreement is properly negotiated, these payouts can be substantial and rewarding to the tenant. Tenants who are in the process of vacating or have difficulty paying the current rent can use the additional cash to find new housing and to start a new tenancy elsewhere.
The amount that tenants are paid rely on a variety of factors. For example, the current rental rate of the property, the new market value/rental rate of the property, time and expense to vacate and the mandatory relocation amount provided by rent control statutes when proceeding through the city. Thus, the payout is case by case.
Who We Represent
At the Law Office of Aaron Kohanim, we represent tenants in Los Angeles, Beverly Hills, Santa Monica and other areas in Los Angeles County who want an attorney to negotiate on their behalf a relocation agreement. We walk you through the process, review any agreements, advise you on a reasonable payout, and how to receive a better outcome.
Contact the Law Office of Aaron Kohanim today to schedule a consultation. You can call us at (310) 861-7506. If you prefer to send a quick message, visit our Contact Us page.
The response above is not intended as legal advice. This response does not create an attorney-client relationship. Legal questions can only be fully answered through consultation with an attorney to whom you give full and accurate details. It is highly recommended that you seek advice from an attorney by setting up a confidential meeting. All who read this answer should not rely on the answer to govern their conduct.
Contact the Law Office of Aaron Kohanim today to schedule a consultation. You can call us at (310) 861-7506. If you prefer to send a quick message, visit our Contact Us page.
The response above is not intended as legal advice. This response does not create an attorney-client relationship. Legal questions can only be fully answered through consultation with an attorney to whom you give full and accurate details. It is highly recommended that you seek advice from an attorney by setting up a confidential meeting. All who read this answer should not rely on the answer to govern their conduct.
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