Should You Use an Attorney for Cash for Keys?

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 should have a consultation with an attorney to go over what requirements you as a property owner must comply with at every stage- offer, agreement drafting, filing, and move out. Some cities require certain disclosures be provided in advance and even translated. There may also be a minimum amount of money you must offer the tenant, usually relocation. You will also want a strategy in place- how you will approach the tenant, agree on follow ups, have a civil dialogue for negotiations, and work out key terms.

An attorney prepares you for all of that, while also giving you tips on negotiating points and common pitfalls. Once an agreement is reached and attorney can draft a compliant agreement that’s enforceable, clear, and designed to protect your interests if a tenant does not vacate as agreed. Simple errors—like using the wrong language, skipping disclosures, or failing to document properly—can undo the entire deal. Cities have strict rules on buyouts. An attorney who knows the local laws will make sure you don’t accidentally violate tenant protections.

When You Should Definitely Have a Lawyer

When offering larger buyouts (tens of thousands of dollars), when the unit is rent-controlled or subject to strict tenant protections and eviction restrictions, or when there’s already tension or legal disputes with the tenant, you should talk to an attorney first. If you believe you and your tenant cannot have a civil discussion and it may turn aggressive or emotional, you may want to consider having an attorney do the negotiations for you. The goal is to have a voluntary move out agreement reached, not create animosity.

The Takeaway

You’re not legally required to hire an attorney for Cash for Keys. But in practice, legal guidance protects your investment and keeps deals from falling apart. Talk to an attorney first, before you make any decisions on how to approach your tenant. I have seen several property owners get sued after paying significant buyout money because they did not comply with the requirements. Significant money is on the line, you don’t want to cut corners and end up exposing yourself to civil liability because your deal was not compliant.

The information in this post is for general information purposes only. Nothing on this post should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.