If you own a rental in California and need the tenant to move out, whether to sell, move in, or end a difficult tenancy, you’ve probably heard of “cash for keys.” It’s a voluntary deal where you pay the tenant to move out by a certain date and leave the property in agreed condition.

We buy rental properties in California, and we’ve seen how tenant situations play out, including how difficult they can be. We’re not attorneys, and tenant law in California is complicated and changes often, so talk to a landlord-tenant attorney before making any offer. Here’s an overview to help you understand your options.

What Is Cash for Keys?

Cash for keys is a negotiated, voluntary agreement: the landlord pays the tenant an agreed amount, and the tenant agrees to move out by a specific date and hand over the keys. It’s commonly used to:

• Avoid a long, expensive eviction
• Get a property vacant so it can be sold, renovated, or moved into
• End a tenancy that isn’t working for either side

Banks also use cash for keys after foreclosures to get former owners or tenants to leave peacefully. The California Department of Real Estate has published a consumer alert on cash for keys programs.

Why Landlords Use It

• Speed and certainty. An eviction can take months, especially if the tenant contests it, and the outcome isn’t guaranteed.
• Lower total cost. Once you add attorney fees, court costs, lost rent, and potential damage, paying a tenant to leave is often cheaper.
• Better condition. Agreements usually require the unit to be left broom-clean and undamaged before the tenant gets paid.
• Less conflict. A voluntary agreement tends to be less stressful for everyone.

How Much Should You Offer?

There’s no fixed number. Offers commonly depend on:

• Local rent levels. In the Bay Area, where moving is expensive, amounts tend to be higher.
• How long the tenant has lived there and how far below market their rent is.
• Any legally required relocation payments in your city (see below).
• How long an eviction would take and what it would cost you.

Many landlords start by estimating their cost of an eviction plus lost rent, then offer a meaningful share of that to the tenant. An attorney can help you set a fair, legal amount.

California Rules to Know

This is where landlords get into trouble. Before offering cash for keys, understand:

• Statewide just cause rules. California’s Tenant Protection Act generally requires a legal reason to end many tenancies and, in some cases, relocation assistance. Cash for keys doesn’t let you skip these rules.
• Local rent control and buyout laws. Cities such as San Francisco, Oakland, and Berkeley have their own tenant protections. Some require specific disclosures, waiting periods, or filings before a tenant buyout agreement is valid.
• Relocation payments are separate. In some situations, tenants are legally owed relocation money. A cash for keys payment is different from, and may need to be on top of, what the law requires.
• No pressure or harassment. Tenants must be free to say no. Threats, cutting services, or pressuring tenants can violate the law.

Rules vary by city and change often. Always check local rules and have an attorney draft or review the agreement.

What a Cash for Keys Agreement Should Include

• The amount and how and when it’s paid (typically at move-out, after a walkthrough)
• A move-out date
• Condition requirements (broom-clean, no damage, all belongings removed)
• How the security deposit is handled
• Keys and access returned
• Any required local disclosures, and signatures from all adult occupants

The Alternative: Sell With the Tenants in Place

If your goal is to sell, you may not need the tenant to leave at all.

Some investors buy occupied rental properties with the tenants still living there. When that works, it can mean:

• No eviction and no cash for keys paid by you
• No vacancy, turnover, or repairs between tenants
• Fewer showings that disrupt your tenant
• The new owner takes over the existing lease and the tenant relationship after closing

Buying with tenants in place is harder in California, especially in cities with rent control, so buyers (including us) look at each property case by case: the lease, the rent, local rules, and the tenant situation all matter.

Selling with a tenant in place usually brings a lower price than selling a vacant, fixed-up home on the open market. But once you subtract the cost of getting the unit vacant, months of lost rent, repairs, and commissions, the difference is often smaller than landlords expect. It’s worth comparing both. See our cash offer vs. listing comparison.

How We Buy Rentals

• Case by case with tenants. Depending on the property, the lease, and local rules, we may be able to buy with tenants in place, or we’ll talk through other options with you.
• As-is. No repairs, cleaning, or turnover.
• We’re the actual buyer, with proof of funds provided with the offer.
• No commissions, and we cover typical closing costs.
• Flexible timing. We can often close in as little as 7 days.

Learn more on our How It Works page.

Frequently Asked Questions

Done Being a Landlord?

If you’re thinking about cash for keys because you want to sell, let’s talk first. We’ll look at your property and tenant situation and, where it makes sense, give you a free, no-obligation cash offer so you can compare it against getting the property vacant. Call Lawrence at (510) 824-8710 or fill out the form below.