In the City of Los Angeles, removing a tenant from a rent-controlled unit can be a costly and time-consuming process—unless you do it the smart way. Enter: Cash for Keys.
Cash for Keys is a voluntary tenant buyout agreement where landlords offer tenants money or other consideration in exchange for them voluntarily vacating a rental unit. This alternative to formal eviction can save time, reduce legal risk, and help both parties walk away on peaceful terms.
But in Los Angeles, Cash for Keys agreements are heavily regulated by the Los Angeles Housing Department (LAHD). Failing to follow the required procedure can lead to civil penalties, rescinded agreements, and even tenants moving back in.
👉 Need help drafting a buyout offer or submitting forms to LAHD? Call Mirage Law at 424-256-6686 for landlord-side legal representation.
What is a Cash for Keys Agreement?
A Cash for Keys agreement is a private contract where a tenant agrees to move out voluntarily—often in exchange for a cash payment, waiver of back rent, or relocation assistance.
This type of agreement is:
– Faster and cheaper than eviction
– A legal way to end a tenancy without claiming “just cause”
– Commonly used in RSO units (rent-controlled) and property redevelopment scenarios
✅ Important: The agreement must be entirely voluntary. Landlords cannot threaten, harass, or coerce tenants to accept.
LAHD Regulations for Cash for Keys (Tenant Buyout Agreements)
If your property is subject to the Rent Stabilization Ordinance (RSO), you must comply with LAHD’s Buyout Notification Program (LAMC § 151.31).
What You Must Do:
- Serve a Disclosure Notice
Before discussing a buyout, you must serve tenants with the LAHD Disclosure Notice (form provided by the City). This informs tenants of their rights.2. Use the LAHD Approved Form
All agreements must be in writing using the official LAHD Tenant Buyout Agreement form. No handwritten notes, texts, or verbal agreements will hold up.3. Submit to LAHD
After the tenant signs, you must file:
– A copy of the agreement
– A signed copy of the disclosure notice
All documents must be submitted to LAHD within 60 days of signing.4. Tenant Has the Right to Rescind
Tenants have 30 days to cancel the agreement after signing. You cannot remove the tenant or change locks during that period.📄 Download the official LAHD Buyout Disclosure and Agreement Forms here:
https://housing.lacity.org/residents/tenant-buyout-agreements
🚨 Violations of this process can result in:
– Fines
– Invalidation of the agreement
– Tenant reentry
– Future buyout bans
Need help preparing or reviewing your buyout documents? Call Mirage Law at 424-256-6686 to avoid costly mistakes.