A cash-for-keys calculator works by adding up what a formal eviction would actually cost you in legal fees, lost rent, and turnover damage, then offering the tenant a share of that total. Most offers land somewhere between one and three months’ rent, but the right number for your situation depends on the specifics of the eviction you’d otherwise face. Landlords who run through the math before making an offer almost always settle on a figure that beats the cost of court. Tenants benefit from the same math in reverse: knowing what the landlord stands to lose gives you leverage to negotiate upward.
The Cost Inputs That Drive the Number
Five line items feed almost every cash-for-keys calculation. Work through each one honestly for your specific unit and market before settling on an offer.
Legal Fees You’d Spend on Eviction
Court filing fees for an eviction typically run $50 to $500 depending on jurisdiction. Attorney fees are the bigger variable. A straightforward, uncontested eviction might cost around $500 in legal fees, but if the tenant fights back or raises habitability defenses, attorneys can bill $3,000 to $5,000 or more before the case resolves. Whatever you’d spend here is money you could instead put toward a buyout.
Rent You’ll Lose During the Process
A formal eviction commonly takes 30 to 60 days from filing to actual removal, and contested cases can stretch for months. Every week the unit sits occupied by a non-paying tenant is rent you’ll never collect. On a $2,000-a-month unit, a two-month eviction process costs $4,000 in lost income on top of the legal bills. Lost rent is often the single largest line in the calculation and the one landlords most frequently underestimate.
Turnover and Damage After an Adversarial Exit
Tenants forced out through eviction have little incentive to leave the unit in good shape. Turnover costs after a contested eviction commonly run $1,750 to $4,000 for cleaning, painting, and repairs. A cash-for-keys agreement lets you build in a broom-clean condition requirement, which cuts what you’ll spend getting the unit rent-ready.
Moving Expenses You Offer to Cover
Folding moving costs into the offer makes the deal more attractive and speeds up the timeline. A basic local move for a one- or two-bedroom apartment typically costs $600 to $1,500, with full-service moves running higher. Some landlords add this to the lump sum; others pay the moving company directly to make sure the money actually goes toward vacating.
Rent Differential in a Tight Market
If the tenant will be relocating to a more expensive area, acknowledging that gap strengthens the offer. When the current rent is $1,200 and comparable units nearby average $1,600, covering that $400 monthly difference for two or three months shows good faith and makes the math work for the tenant. This factor matters most in tight rental markets where affordable alternatives are scarce.
Typical Offer Ranges
Every situation is different, but most cash-for-keys offers cluster around predictable ranges. For a tenant paying $2,000 a month, offers typically fall between $2,000 and $6,000. Smaller units and shorter tenancies often see flat offers in the $1,000 to $2,500 range. In expensive markets, or when a property sale is pending and the landlord needs a guaranteed quick exit, offers routinely run higher.
Some industry sources suggest that half a month’s rent to one full month’s rent, plus the remaining security deposit, is a reasonable starting point for cooperative tenants. Difficult situations, where the tenant has strong legal protections or the landlord faces a tight deadline, push the number toward two or three months’ rent. Any amount below your total projected eviction cost represents a net savings for you.
When Local Law Sets the Floor
In cities with rent stabilization or just-cause eviction ordinances, local law may require minimum relocation assistance payments that effectively set a floor for cash-for-keys negotiations. These mandatory minimums can range from a few thousand dollars to $20,000 or more depending on the tenant’s length of tenancy, age, disability status, and the local cost of living. Several major cities tie the required amount to fair market rent figures published by the U.S. Department of Housing and Urban Development.
If you’re operating in a rent-regulated market, check your local ordinance before making an offer. You can’t legally go below the statutory minimum, and some jurisdictions also require specific written disclosures before any buyout conversation can begin.
A Worked Example
Here’s how the inputs come together for a landlord with a tenant paying $1,800 per month in a moderately priced market:
- Court and attorney fees avoided: $1,500 to $4,000
- Lost rent during a two-month eviction: $3,600
- Turnover repair savings: $1,750 to $4,000
- Total projected eviction cost: roughly $6,850 to $11,600
An offer of $3,500 to $5,400, roughly two to three months’ rent, gives the tenant a meaningful incentive to cooperate while saving the landlord thousands versus the eviction route. If the tenant has strong legal defenses or lives in a rent-stabilized unit, push the offer higher. If the tenant is already far behind on rent and has weak legal standing, a lower offer may still be accepted.
Where the Security Deposit Fits
The security deposit is a separate legal obligation and shouldn’t be rolled into the cash-for-keys number without careful handling. State law requires landlords to return the deposit, minus legitimate deductions for unpaid rent, cleaning, or damage, within a set timeframe after the tenant vacates. You can’t quietly fold the deposit into the buyout and call it even unless the agreement explicitly addresses the deposit and the tenant knowingly waives their right to a separate accounting.
The cleaner approach is to keep the two transactions separate. Pay the agreed cash-for-keys amount at the walk-through, then process the security deposit refund or deduction statement under your normal state-law timeline. If you’re using the “one month’s rent plus the remaining deposit” benchmark, make sure the agreement spells out that the deposit portion satisfies your return obligation.
Tax Impact on the Net Amount
Cash-for-keys payments are taxable income to the tenant. The IRS treats them as “other income” reportable on the tenant’s return.1Internal Revenue Service. Volunteer Tax Alert 2011-08: Cash for Keys Program That classification follows from the broad federal definition of gross income, which captures all income from whatever source derived.2Office of the Law Revision Counsel. 26 USC 61 – Gross Income Defined A tenant evaluating an offer should mentally discount it by their marginal tax rate when deciding whether the number actually covers moving and relocation costs.
For landlords, the reporting threshold changed in 2026. The threshold for issuing Form 1099-MISC increased from $600 to $2,000 for tax years beginning after 2025, with inflation adjustments starting in 2027.3Internal Revenue Service. General Instructions for Certain Information Returns (2026) A cash-for-keys payment of $2,000 or more means you should issue a 1099-MISC with the amount in Box 3. Payments below $2,000 are still taxable to the tenant, but the information return isn’t required. Cash-for-keys payments are generally deductible on the landlord’s side as a rental property business expense, since they’re incurred to regain possession of an income-producing asset.
Keeping the Offer Legal
The number only works if the offer itself is lawful. A cash-for-keys offer must be genuinely voluntary. Shutting off utilities, removing doors, or changing locks to pressure a tenant into accepting is illegal self-help eviction in every state, and it exposes the landlord to statutory penalties plus the tenant’s attorney fees.
Several jurisdictions have enacted specific anti-harassment protections around buyout offers. Some cities require that tenants be informed in writing of their right to refuse and to consult an attorney. Others restrict how frequently a landlord can make contact after a tenant has declined. The safe practice is to make the offer once in writing, give the tenant reasonable time to consider it, and not escalate if they say no.
From the tenant’s side, accepting a cash-for-keys offer is always optional. No landlord can require you to take the money, and refusing doesn’t give them grounds to evict. If you feel pressured or threatened during negotiations, document the interactions and contact your local tenant rights organization or housing authority. The leverage you have to negotiate the number upward depends on being free to walk away from the table.