Cash for keys in Washington State is a voluntary written agreement in which a landlord pays a tenant an agreed sum, usually one to two months’ rent, in exchange for the tenant vacating the rental by a set date and surrendering possession. It is a private contract, not a court process, and it exists because Washington’s just cause eviction law makes formal removal both narrow in scope and slow to complete.
Why These Deals Are Common in Washington
Under RCW 59.18.650, a landlord cannot end a tenancy without one of the specific reasons the statute lists, such as nonpayment of rent, lease violations, nuisance behavior, owner move-in, or sale of a single-family home.1Washington State Legislature. RCW 59.18.650 – Eviction of Tenant, Refusal to Continue Tenancy, End of Periodic Tenancy A landlord who simply wants the unit back, or who wants to renovate and re-lease at market rate, often has no qualifying reason to file.
The notice periods for the qualifying reasons are long. Owner move-in and sale each require 90 days’ written notice. A general “good business reason” termination requires 60 days, and the court can stay the eviction order for another 60 days if the tenant shows difficulty finding new housing.1Washington State Legislature. RCW 59.18.650 – Eviction of Tenant, Refusal to Continue Tenancy, End of Periodic Tenancy Washington also guarantees free legal representation for low-income tenants facing eviction, so contested cases run months.2Office of Civil Legal Aid. Eviction Defense
That is the environment that makes a buyout attractive. The landlord resolves possession in days instead of months and avoids attorney fees. The tenant gets moving money and no eviction on record. Both sides trade something they value less for something they value more.
Is Cash for Keys Legal in Washington?
Yes. The Residential Landlord-Tenant Act in RCW Chapter 59.18 does not mention cash for keys by name, but that is not a problem.3Washington State Legislature. RCW 59.18 – Residential Landlord-Tenant Act The arrangement is a voluntary contract, and Washington courts enforce it under ordinary contract principles when both parties consented freely and the terms are clear.
Consent is what matters. If a tenant can show they were pressured, misled about their rights, or threatened with consequences the law would not actually allow, the agreement can be challenged. A landlord who says “take this or you’re out next week” when the statute requires 90 days’ notice has created a coercion problem. The safer path is a written offer, time to consider it, and language stating explicitly that the tenant can refuse without consequence.
A verbal buyout invites a dispute neither side can prove. Put it in writing.
One boundary worth naming: the federal Fair Housing Act still applies. A landlord who offers buyouts only to tenants with children, or only to tenants of a particular background, creates liability regardless of how voluntary the deal looks on paper.4U.S. Department of Housing and Urban Development. Housing Discrimination Under the Fair Housing Act
What the Written Agreement Should Cover
A workable cash-for-keys document is specific enough that neither side can claim confusion later. It should include:
- Every adult tenant on the lease and the landlord or management entity, using the same legal names as the original rental agreement.
- The full property address, including unit number.
- A specific move-out date and time, such as “5:00 PM on July 15.” Phrases like “by mid-July” cause fights.
- The exact dollar amount, and whether it is in addition to or inclusive of the security deposit refund.
- The required condition at turnover. “Broom clean, all personal property removed, no damage beyond normal wear” is standard.
- Payment method and timing, whether at the walkthrough, at key surrender, or within a set number of days.
- A statement that the tenant is entering the agreement voluntarily and has not been threatened or coerced.
The Release of Claims
The most important clause for the landlord is a mutual release, where both sides give up the right to sue over anything related to the tenancy. Without it, a tenant can accept the payment and then file a habitability complaint. A release is enforceable only when it is entered into knowingly and supported by consideration the other party was not already owed. The buyout payment supplies that consideration, and the agreement should say so.
Security Deposit Handling
Washington law requires the landlord to return the deposit or provide a written explanation of deductions within 30 days after the tenancy ends.5Washington State Legislature. RCW 59.18.280 – Moneys Paid as Deposit or Security for Performance by Tenant A landlord who misses that deadline forfeits any deductions. The agreement needs to state directly whether the landlord is refunding the deposit in full as part of the deal, applying it to unpaid rent or damage, or handling it through the normal 30-day process. Leaving this ambiguous is one of the most common mistakes and can leave the landlord paying the buyout and losing a later deposit lawsuit.
How Much Do Landlords Typically Pay?
There is no statutory formula. The number is negotiable. In practice, offers usually fall between one and two months’ rent. Landlords sometimes frame the amount around what a formal eviction would cost them in attorney fees, lost rent during the process, and potential damage from a contested removal. For the tenant, the payment needs to cover realistic moving costs: first and last month’s rent at a new place, moving expenses, and utility deposits.
Context drives the number. A tenant with no lease violations, being asked to leave for the landlord’s convenience, has more leverage than a tenant three months behind on rent. A Seattle landlord, where local rules layer additional protections on top of state law, will often pay more than one in a smaller market where eviction moves faster. How quickly the tenant can find replacement housing also matters.
The payment does not have to be a single flat check. Some deals fold in forgiveness of unpaid rent, early lease termination without penalty, or a full deposit refund. What matters is that the total value is clear on paper.
Completing the Turnover
Once the agreement is signed, execution should be tight and documented. On the agreed date, both parties walk the unit together to confirm the tenant met the condition requirements. If the unit is acceptable, the tenant hands over all keys and access devices, and the landlord provides payment. A cashier’s check is standard because the funds are bank-guaranteed, there is no dollar cap, and the tenant can verify it before leaving. Wire transfers work, but the tenant may want confirmation the funds have posted before surrendering keys.
Both parties should sign a short turnover confirmation stating the date, time, that keys were exchanged, and that the property met the agreed condition. This is a receipt, separate from the main agreement, documenting that the deal was actually performed.
After the tenant departs, the landlord should change the locks on all exterior doors immediately. Keep the signed agreement, turnover confirmation, and payment receipt together.
Taxes and Government Benefits
The IRS treats cash-for-keys payments as taxable income to the tenant, reported as other income.6Internal Revenue Service. Volunteer Tax Alert 2011-08 Cash for Keys Program A $3,000 payment does not net $3,000 after taxes. For landlords, the payment is generally deductible as a business expense. Starting with the 2026 tax year, the reporting threshold for Form 1099-MISC increased from $600 to $2,000, so landlords making buyout payments of $2,000 or more should issue a 1099 to the tenant.7Internal Revenue Service. Publication 1099 (2026), General Instructions for Certain Information Returns Even under that threshold, the income is still taxable to the tenant.
Tenants on government benefits should think carefully. Housing Choice Voucher (Section 8) rules exclude lump-sum additions to assets from income calculations, so a one-time buyout generally does not count against a voucher holder, though the tenant should still notify the housing authority before signing anything, because unauthorized moves can jeopardize the voucher.8HUD Exchange. Part 5 (Section 8) Income and Asset Inclusions and Exclusions SSI recipients face a harder problem. The 2026 resource limit is $2,000 for an individual and $3,000 for a couple, and a payment that pushes countable resources over the limit, even for one month, can suspend benefits.9Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet SSI recipients need to spend the funds down on qualifying expenses like moving costs and rent deposits before the next resource-counting date.
Local Rules That Change the Numbers
Washington’s state law is the floor. Several cities set the number higher.
Seattle
Seattle’s Just Cause Eviction Ordinance in SMC 22.205 restricts landlords to a specific list of approved reasons for ending a tenancy, and it applies to month-to-month renters, verbal agreements, and tenants with expiring leases.10Seattle Department of Construction and Inspections. Just Cause Eviction Ordinance For landlords who lack a qualifying reason, a voluntary buyout may be the only legal way to regain possession.
Seattle also runs a separate Tenant Relocation Assistance Ordinance requiring property owners to pay relocation costs to low-income tenants displaced by demolition, substantial rehabilitation, or change of use. The current amount is $5,354, split evenly between the owner and the City of Seattle.11Seattle Department of Construction and Inspections. Tenant Relocation Assistance Ordinance A landlord who owes relocation assistance under this ordinance cannot use a cash-for-keys deal to pay less. The buyout and the relocation obligation are separate, and the agreement should acknowledge both when the ordinance applies.
Other Cities
State law explicitly allows cities, towns, and counties to require relocation assistance beyond what the state mandates.12Washington State Legislature. RCW 59.18.085 – Rental of Condemned or Unlawful Dwelling, Tenant Remedies, Relocation Assistance, Penalties Tacoma, Burien, and others have adopted their own protections. Before making an offer, check whether the city has just cause rules, relocation assistance requirements, or mandatory buyout disclosures that set a floor on what the tenant is owed.
What If the Tenant Takes the Money and Stays?
This is the risk landlords worry about most. If the tenant signs, cashes the check, and refuses to leave, the landlord cannot change the locks or remove belongings. Washington law treats that as an illegal lockout regardless of what the agreement says. The only option is an unlawful detainer action under RCW 59.12.030.13Washington State Legislature. RCW 59.12.030 – Unlawful Detainer Defined
The signed agreement becomes strong evidence in that proceeding. It shows the tenant agreed to leave by a specific date and received payment for it. Courts take that seriously. But it does not skip the process; the landlord still has to serve notice, file, and get an order.
Two structural moves reduce the risk. First, split the payment: a common approach is half at signing and half at turnover, when keys actually change hands. Second, include a clause stating that if the tenant fails to vacate, the agreement is grounds for an unlawful detainer action and the tenant agrees to reimburse reasonable attorney fees and court costs. Whether that reimbursement clause is fully enforceable depends on the facts, but it creates a strong incentive to follow through.
Pressure Tactics That Void the Deal
A landlord who tries to make the property unpleasant to push a tenant into accepting an offer is heading toward a constructive eviction claim. Shutting off utilities, removing appliances, letting repairs slide, or creating disruptions can all qualify. The offer itself is legal. The offer paired with neglected maintenance requests or unannounced showings starts to look like coercion.
The cleanest protection is to keep the offer separate from ordinary property management. Continue handling repair requests, respect notice-of-entry rules, and let the offer stand on its own. Tenants who feel pressured can refuse any buyout without consequence, and a landlord cannot retaliate for a refusal. If conditions in the unit worsen after the refusal, that pattern itself becomes evidence.