How to Navigate Cash-for-Keys (Step by Step)

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Selling a property in today’s market isn’t easy.

And when that property is tenanted? Virtually impossible.

Because when vacant possession can’t be guaranteed, the buyer pool shrinks. And if you do generate an offer, it’s usually well below what the same property would sell for vacant.

That’s why I’ve had so many conversations with landlords this year about Cash for Keys agreements.

In many cases, paying cash to a tenant today ends up being cheaper than the discounted price a buyer will want on a tenanted sale.

So, here’s how I approach these situations:

1. Start the conversation.
   Lead with respect. This is voluntary, not a threat. Be clear about the seller’s intentions and frame the offer as a fair trade that leaves everyone better off.
2. Negotiate the two key terms: Price & Date.
   Everything hangs on these.
   Price → agree on a firm dollar amount (no ranges, no “TBD”).
   Date → set a realistic move-out date, with enough time for logistics.
3. Put the agreement in writing.
   This is where most landlords get it wrong by relying on the N11 alone. The N11 is good to have, but it’s not enough. I also prepare a full Mutual Agreement to Terminate Tenancy that works alongside it and covers:

• how and when payment is made
• future rent and Last Month’s Rent deposit
• the condition the property must be left in
• return of keys, fobs, and other items
• consequences if the tenant doesn’t vacate

4. Add the safety net (the L3).
   Once everything’s signed, I always recommend the landlord file an L3 Application with the LTB. That way, if the tenant doesn’t leave, the landlord can apply for eviction without a hearing.
5. Day-of logistics.
   On termination day, the landlord does a walk-through inspection, collects the keys/fobs, and releases the payment to the tenant. Always provide a receipt so everyone has a clean paper trail.

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Knowing how and when to have this conversation is important for your business.

Knowing how to execute it properly is even more important.

And if you want my help to do it, I'm always happy to assist.

Oh, and I finally launched a YouTube channel. 🎥

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