Cash For Keys (2019 - 2023)

Summary and Analysis

Amid the ongoing housing crisis, our Office wanted to provide transparency on how many tenant buyouts, or “cash for keys” agreements (where a landlord pays a tenant to move out), are happening throughout the City, and where. Data includes all tenant buyout agreements filed between 2019 and 2023.

Between 2019-2023:

  • • 4,869 Tenant Buyout or “Cash for Keys” agreements were filed
  • • $24,704 was the average buyout amount

Number of Tenant Buyouts by Year

Number of Tenant Buyouts by Council District

Units located within Council District 10 had the highest number of tenant buyouts (997), followed by Council District 13 (970).

Top 20 Zip Codes with Highest Number of Tenant Buyout Agreements

Units located within 90004 (Koreatown, Mid-Wilshire area) had the highest number of buyout agreements (370), followed by 90026 (Echo Park area) with 250.

#Zip CodeCommunities# of Buyouts

Tenant Buyouts by $ Range

The total dollar amount of tenant buyouts was $118,305,500 with an average tenant buyout amount of $24,704 per unit.

Buyout Range# of BuyoutsAmount

Tenant Rights

Tenants have a number of rights when presented with a "cash for keys" offer:

  • • The tenant is not required to accept or sign the Buyout Agreement.
  • • The tenant may consult with an attorney or call LAHD prior to accepting the landlord’s offer.
  • • The tenant may cancel the Buyout Agreement up to 30 days after signing it without obligation or penalty.
  • • If the owner does not comply with the requirements above, then the tenant has the right to cancel the Buyout Agreement for any reason at any time without obligation or penalty.
  • • If the owner does not comply with the requirements above, then the tenant may assert an affirmative defense to an Unlawful Detainer action and may have a private civil remedy against the owner.

About the Tenant Buyout Notification Program

The Tenant Buyout Notification Program went into effect on January 25, 2017 and amended the City’s Rent Stabilization Ordinance (RSO) to regulate tenant buyout agreements (also known as “cash for keys”) for rent-stabilized units. These agreements occur when a landlord pays a tenant to vacate.

Before this program, these buyout agreements, which amount to voluntary evictions, were not covered by the RSO.

This program requires landlords to provide a disclosure of tenant rights for these agreements, which allows tenants to refuse or rescind the offer, and provides a baseline of compensation.

Under this program, landlords are required to file tenant buyout agreements with the City.