10 Mandatory Steps to Take in a Cash for Keys Agreement

If you find yourself here, you may be dealing with illegal occupants inside your property. Yikes. We’ve been there! As landlords ourselves, we’ve stumbled through countless cash for keys situations. Surprising to some, yes, we prefer to pay someone to leave our property in exchange for the keys versus going through the court system. If you’ve ever dealt with squatters or tenants refusing to leave, you know it’s far from a cakewalk.

Here are the 10 mandatory steps our company follows when doing cash for keys.

Tip 1: Review Your Local Laws

Before anything, arm yourself with knowledge of local laws. Cities vary wildly on tenant rights, and squatters have their own surprising rights, too. Philadelphia PA, for example, has specific squatters’ rights, which may protect unauthorized occupants to a degree you wouldn’t expect.

Understanding these laws will help you avoid costly mistakes and legal loopholes they might exploit. Know what you can and can’t do legally before moving forward. You have to play defense and offense at the same time when trying to exchange cash for keys with someone.

Tip 2: Attempt Communication

Play it cool! Start the conversation as casually as possible. A phone call might break the ice without putting them on high alert. Most importantly, document everything. A text is perfect – it’s quick, trackable, and less formal than an email. Speaking of email, it’s another option, though it may take longer to get a response.

‘If they don’t text, do you really think they email?’ Common! You could attempt to do cash for keys with a squatter through snail mail – if you want to get your property back at a snail’s pace.

If all else fails, consider an in-person approach. Knock on the door but bring a handwritten note. Jot down a simple summary of the situation and your request, along with your phone number. Keep it polite, direct, and unthreatening.

Tip 3: Talk to Neighbors

Sometimes squatters go silent on you. When that happens, the neighbors become your allies. Approach them respectfully – you might learn more than you expected. Perhaps they know the squatter’s tendencies, like if they’re willing to negotiate or likely to cause trouble.

Neighbors might even have the squatter’s contact information. Be friendly and low-key here, so they’re willing to spill any useful intel. Getting your keys back in exchange for cash relies on this! Lead with kindness until you’re forced not to.

Tip 4: Don’t Burn Bridges Early

No matter how frustrating the situation feels, resist the urge to vent or burn bridges with squatters. If you do, they may ghost you, vanishing just as communication seemed productive. Keep things as open and amicable as possible – think of it as a team effort, even if it’s a reluctant one.

This is crucial because, if you sour the relationship, eviction or ejectment are your next moves – and those can be costly and time-consuming. Save yourself the hassle by playing it cool.

Tip 5: Agree on Price

If they’re open to moving, it’s time to talk numbers. Here’s the trick: start low. Let’s say you can afford $4,000 to get your property back. Start at $1,000. A low offer grabs their attention without immediately maxing out your budget. However, make sure it’s a serious offer; offering something ridiculous like $50 will end the discussion quickly.

How Much Cash Should I Offer a Squatter?

In deciding your max price, factor in potential legal costs. A formal ejection might run you more than a cash for keys deal, not to mention attorney fees and the potential loss of rent. Also, think about your plans for the property. Do you plan to keep it for a while? Maybe you want to quickly sell the house and move on. All of this impacts the number you land on.

What if They Reject My Cash for Keys Offer?

Finally, be patient. If they reject your initial offer, don’t jump up immediately. Let them stew on it, then return with a slightly higher number – maybe $2,500 or $3,000. Stay flexible and human. Sometimes, they just need a certain amount to get started moving into a new place. If they ask for $1,750 for moving expenses, and that’s within your budget, it may be the golden ticket.

Tip 6: Establish a Move-Out Date

With price in place, lock in a move-out date. Be precise, down to the hour if possible. Avoid ambiguous phrases like “by sometime Monday.” Squatters who are dragging their feet may push the limit of vague agreements, so specificity here prevents any last-minute surprises.

Tip 7: Determine the Condition Status of the House

This is the most common mistake that landlords make when negotiating a cash for keys agreement with a bad tenant or squatter. Don’t forget to negotiate the condition of the property they’re leaving behind. Do you want it “broom-swept,” or are you willing to accept it as-is?

If you don’t specify, it’ll likely be in rough shape. Remove all variables from an already terrible housing situation. Maybe you just want them gone and don’t care if the place needs a deep clean! Set this expectation clearly, so they know what’s expected. You don’t want a rude surprise when you finally get the keys.

Tip 8: Put These Details in Writing

Once you’ve agreed on the terms, put it in writing. All of it:

• Cash amount
• Move-out date
• Move-out time
• Property condition
• Everything

Having this in writing saves you from any “forgetfulness” or confusion later. Get signatures if possible; even a simple contract or agreement form will work. This document is your safety net. Granted, if they’re squatting, they’re already breaking some laws and rules. So signing this may not help that much unless things escalate from cash for keys to court.

Tip 9: Walk-Through First, Keys Second, & Cash Third

On the agreed day, do a walk-through before handing over the money. Check that the property’s condition aligns with what you discussed. Confirm they’ve vacated, hand over cash only after getting the keys, and make sure the whole deal goes down smoothly.

Tip 10: Change the Locks

Not all squatters are clueless; some are clever enough to make spare keys. As soon as you have those keys in hand, change the locks. Check windows and other entry points, too. If you’re particularly cautious, consider installing a security system. The last thing you need is them coming back.

Our Experience as Landlords Doing Cash for Keys in Philadelphia, PA

From firsthand experience in Philadelphia, cash for keys isn’t always straightforward. We’ve had squatters who vanished without a word and others who took a more cooperative approach. We buy houses in Philadelphia from other homeowners that are occupied by squatters. A.K.A. we know our way around a cash for keys debacle.

Sometimes, doing cash for keys goes quickly. Other times, it’s a game of cat-and-mouse, taking a few conversations before the deal closes. But for us, it’s often a faster, cheaper way to regain control of a property.

Cash for Keys Tips in Philadelphia, PA

Philadelphia landlords, remember: know the laws, start with good communication and take it one step at a time. The goal is to get them out without a courtroom showdown. Cash for Keys might be your best route, so follow these tips to get it right the first time. The laws around squatting in Philly are rough (if you’re a landlord). They don’t make it easy to get your keys back. We’d prefer cash for keys versus an ejectment all day, every day.