Before approaching tenants with a Cash for Keys or buyout offer, landlords must understand the legal framework that governs these agreements. Compliance isn’t just good practice—it’s essential protection against costly penalties, invalid agreements, and potential harassment claims. Know Local and State Buyout Disclosure Laws Many cities in Los Angeles have specific ordinances governing tenant buyouts. These laws typically require landlords to provide written disclosures infor

A majority of my clients are property owners. So of course, much of my discussion turns on why ‘Cash for Keys’ agreements work for property owners and their goals: recovering possession of the unit quickly, avoiding legal fees, increasing rents or equity, and reducing risk. However, I also have to talk with property owners about crafting offers and negotiating deals from the perspective of the tenant. What’s in it for the tenant? Stepping into the shoes of the tenant and unde

As a landlord, you might be asking yourself: Do I really need an attorney for a Cash for Keys agreement? The answer is YES, but you have options. Attorneys are used for Cash for Keys in two ways: (1) doing the negotiations on behalf of the property owner, and (2) drafting a compliant agreement. An attorney is not always needed for the negotiations, but is always needed for drafting the agreement. Why Legal Help Matters for Property Owners Prior to approaching a tenant you sho

When approaching a tenant buyout, the key to success lies in one principle: your offer must be more attractive than the alternative of staying put. Tenants rarely move without a strong reason to do so, which means your proposal has to speak directly to both the financial and personal motivations that drive their decision-making. Understand the Local Market and Tenant Profile Before putting any number on paper, do your homework. What is the current rental market like in your a

Cash for Keys simply comes about because landlords have a motivation. Meaning, landlords have an upside in making a unit vacant. The motivations vary, but all of them are directly related to the local eviction and rent increase restrictions. The goal is to strategically stabilize and reposition properties. Reposition Underperforming Units Buyouts can be used to vacate and remodel units in which the rents are low. Given rent increase restrictions, often coupled with hands off

Many times during consultations I am asked what is the difference between eviction and Cash for Keys. The difference is simple- one requires a tenant to move out (eviction) and the other the tenant is voluntarily agreeing to move out (Cash for Keys). Let me explain. There are few grounds in which a tenant can be evicted in most jurisdictions in Los Angeles. There are ‘At Fault’ evictions, that is an eviction based on the tenant not paying rent, violating the lease, or committ

One of the main roadblocks for most of my negotiations is that the tenants do not have the ongoing income to qualify for or continue paying rent for the new market rent apartment these tenants would need to move into if they took a Cash for Keys deal. Housing has become more and more expensive as rent control gets stronger (listen to the Tom Bilyeu Podcast- Rent Control is a Scam ) and housing development gets new red tape. A lot of tenants that I approach have low and/or ve

My office provides 'Cash for Keys'/ tenant buyout services in two options: (a) agreement drafting only and (b) a negotiation package, including drafting the agreement. My presentations, whether they are in person, webinars, or YouTube are geared towards giving landlords tools and tips on negotiating buyouts directly with tenants. However, the question is always posed- "Is it better for the landlord to negotiate directly with the tenant or have a third-party negotiate?" The an

Having done buyouts for several years now, I have gathered a lot of data and refined my methods. I will share with you what has worked to get deals done with tenants. You Need to Give Tenants Something to Consider One of the most common mistakes landlords make with initial tenant approach is to ask the tenant what they want to move. Tenants have no idea where to start or what to even say to that. In context, the landlord doesn't want to pay too much, but a tenant, their fear

I give almost every client or potential client the same remark about buyouts- "it is a business decision to you, and a life changing decision to a tenant." That is true in the majority of buyouts, especially those with units that have low rent and major upside for landlords. Here are four lenses of the Cash for Keys/ Tenant Buyouts that landlords need to put on to better understand the dynamic. Life Changing Offer Life changing is subjective. Winning a $1B lottery is a drasti

One type of buyout situation that comes across my desk is the “illegal” unit. The garage conversion or guest house that has no permits but was rented out. Many times the illegal status of the unit doesn’t become an issue until an owner is trying to sell or move back to the property. To start, I do not advise anyone to rent out an illegal garage conversion, addition, or guest house. Even if the tenant is a family member, friend, or friend of a friend that is down on their luc

The goal behind a Cash for Keys agreement is to avoid a lot of strings that neither side wants to deal with. However, not always do deals get done, at least not right away. Given time is of essence to most people, Owners often look to the allowable evictions to terminate leases, especially when there are no ‘at-fault’ reasons, meaning the tenant isn’t violating the lease, not causing a nuisance, and is paying their rent. There are two pathways of what we call “No-Fault, Just

This week I thought I would do another FAQ on tenant buyouts from buyers: Q: I'm a potential buyer of a property that has tenants in the units paying below market or in a unit I want to owner occupy. What information should I ask the seller for? When buying a residential property that is tenant occupied you will want to know from the seller if the seller has ever approached the tenants with a buyout offer. If they have you want to know when they gave an offer, what was offere

First time home buyers looking to step into a duplex or triplex in Los Angeles have a large learning curve. Many first time home buyers, or just first time buyers in Los Angeles, have no idea what laws they are subject to, more specifically what they CANNOT do with their property in many parts of Los Angeles. When looking to purchase residential real estate in Los Angeles for the first time here are some things you need to get educated on before deciding to submit an offer.

Rental application fraud has been increasing, especially post- COVID. It has become a cottage industry, with people selling their services to help fake pay stubs and employment verification so applicants can rent units that they otherwise do not qualify. In addition, some applicants move in and commit additional fraud. Here are a few things to be watchful for if you are leasing. Fake Paystubs/ References During COVID I saw countless videos of people that would photoshop fake

There is no right or wrong answer. However, you need to know your tenancy. Older or long standing tenants like to get to know management/ owner before being approached with a buyout. I had some units I was working on buying out. The Owners wanted to buyout tenants right away because they wanted to start work on the property. I sent out the offers and did my follow ups. One of the tenants emailed back explaining how she had lived there a long time and did not know who the new

The trend of local jurisdictions adopting rent control and just cause eviction restrictions has brought with it the trend of adopting Cash for Keys/ Tenant Buyout regulations. Not surprising, many of the newer jurisdictions have near identical ordinances, but are slightly different between themselves. The jurisdictions in Los Angeles County that have tenant buyout regulations are: Los Angeles City Los Angeles County (Unincorporated) Bell Gardens Cudahy Maywood Pasadena Culver

In light of the multiple jurisdictions with Just Cause eviction ordinances, property owners are finding it incredibly difficult to even owner occupy tenant occupied single family residences, or otherwise non- rent controlled residential properties. To owner occupy a rental the owner has to consider the following: What are the requirements? To owner occupy the property a lot of jurisdictions require that owners file paperwork, pay the tenant relocation payments in the require

A year after the Los Angeles wildfires displaced many property owners, while some have relocated, others still look to move back into their rentals. In theory, that sounds very doable, however, there are strong tenant protections in most if not all parts of Los Angeles. Here are some frequently asked questions that may assist you in understanding the process to owner occupy. What are restrictions to owner occupy a property? There are several overlapping laws when it comes to

One of the largest areas of buyouts I deal with are owners that want to move in themselves or family into a rental house or apartment unit, but they are uncertain about how long they or their family will be living in the unit. Alternatively, in this category of buyouts I get buyers looking to purchase tenant occupied properties that are either rent controlled, or have some type of eviction restriction, and they want to move family in. Here are a few questions I get asked in t