What is a Landlord-Tenant Cash for Keys Agreement in Ontario

You may have assumed that all landlord and renter issues end in fights and never-ending disputes, but not every case goes this way. Take the matter of the landlord considering cash for keys. It’s a legal option where they offer a financial incentive for a tenant to move out by free will. The right landlord legal representation can make the whole thing easier to handle, but you need to do your part and learn about the specifics of this option. Let’s see what the cash for keys agreement is and what you can do to move on without headaches. Read on!

Stay Alert About Your Rights Before You Go for Cash for Keys Ontario

The right legal support helps you come out of the deal with financial and personal gains. Book a meeting with our lawyer now to discuss the cash-for-keys terms.

The Need to Pursue Cash for Keys Agreement Ontario

What is cash for keys and how will it be a financially great choice when you are a tenant or a landlord in Ontario? The simplest way to sort out cash for keys meaning is that this is a deal of tenant eviction where they get paid to pack up and leave. No fights or hard feelings. The landlord will hand over cash amount that both sides were okay with.

It sounds like a loss of money when you hear about it first. But the cash for keys deal can be an easy way out for the landlord.

Giving money and taking keys may be simple. Going through the Landlord Tenant Board (LTB) and a too-long legal process may not be.
It’s also about landlord compensation. You can weigh the cost of getting into a legal issue versus paying the tenant. The latter will likely mean you save much!
It is faster to make a deal where the tenant pockets the cash and leaves soon. Legal fights with court processes can go on for way too long.

Then there is the other side, the tenant. They do not HAVE to sign the cash for keys document, but choose to stay. That said, there are perks they can’t ignore.

Renters can rent elsewhere without any losses and even get some money to do that with no stress of an eviction record.
They will get a reference letter for their next landlord as a good-faith gesture, with cash!
The basics of this deal is giving out cash. Anyone short of money for essentials or if they want to level up their next home and need money will be satisfied.

With these reasons in mind, let’s go back to the beginning. What may be the reasons any landlord will want to think about going for this move-out agreement in the first place?

Need to Pursue cash for keys agreement Ontario

Rent Payment Problems

One reason you may want to offer cash for keys is because of your renter and they payment troubles. Missed rent is one of the most common real estate issues landlords face and may want more reliable tenants. A cash-for-keys deal fixes losses due to lack of rent each month and help you regain control.

Owner or Family to Move In

You may decide to move in or let a family member move in. The ethical thing to do here is to ask the present tenants to leave with a cash offer. It is a fast and fair eviction settlement so you can plan for the future.

Preparing a Property for Sale

Rented homes can be harder to sell, and cash-for-keys becomes a way to attract buyers. This deal is a convenient way to ensure a clean property handover without delays and secure an amazing sale.

Major Renovation Plans

Landlords can ask tenants to take money and leave by choice if they want to rebuild the property. No need for a complicated formal eviction and you get to keep your renovation/rebuilding plans on track!

How To Complete Cash for Keys and Property Recovery

You may be wondering that ‘is cash for keys legal in Ontario?’. The process can be very much okay if both parties follow the rules set by the LTB. Let’s see how it is possible to get clear outcomes for both landlords and tenants.

1. A Friendly Meeting to Kick Things Off

A respectful meeting sets the right mood where both parties can consider their own and each other’s concerns and goals. Strong communication skills of real estate experts involved help make the proposal positive. There’s less tension and both parties get advice to cooperate before formalities start.

2. Fair Financial Terms for Both Sides

Make sure you offer the tenant a reasonable relocation payment according to the market conditions and their situation. Both parties should make an effort to agree without unnecessary disputes.

3. Putting the Agreement in Writing

It is ideal to have lawyers present to keep the meeting going smoothly, as a law firm will also oversee that every term about this deal is written down and signed. They make sure all documents are clear and compliant so that there are no future misunderstandings.

4. A Smooth Move-Out to End It All

The final stage is inspection of property and checking that both sides meet all terms of the deal. You pay your tenant/get your sum from the landlord and seal the lease termination with a hassle-free handover.

Legal Considerations for a Cash for Keys Agreement

As the landlord, you need to go for a formal agreement to help tenants vacate the property by choice. Remember that cash for keys Ontario agreements remain legal when both parties follow the Residential Tenancies Act (RTA) that applies to your province as well.

Full and willing consent is a must in any deal to end a tenancy. And yes, that includes cash-for-keys as well if you want to go through with it without penalties.
Section 22 of the RTA bans landlords from harassing their tenants in any way. You cannot do anything that comes under coercion or threat to make tenants leave.
Go for the Form N11 to make this deal truly legal. You can get this with your LTB. It’s the legal form for an Agreement to End the Tenancy and it can serve as the full and final proof.

Legal support is always the best in a cash-for-keys meeting no matter which side it is. Independent legal advice means that you get proper documentation in your hand and you comply with Ontario laws.

Bottom Line

Think of a cash for keys agreement as a practical way out of a rental situation when you compare it to the long and tiring process of formal eviction or legal fights. As long as you go for clear communication and fair compensation as the landlord, and an open mind and legal help to secure your rights as the tenant, you save time, money, and a whole lot of stress.

Estofa Law offers comprehensive independent legal advice to both landlords and tenants in Ontario. We can handle the paperwork, plus make sure you comply with the terms of the Landlord and Tenant Board. Schedule a consultation today to go through the cash for keys process seamlessly.