Though not as commonplace as they once were, tenant buyout agreements are still a viable way to transition a tenant out of a rental unit. A Tenant Move Out or Buyout Agreement is particularly appealing for landlords that simply cannot find any convenient legal grounds to compel the tenant to leave, or when the legal expenses of an eviction are too cost prohibitive.
As its name implies, a tenant buyout is simply an agreement for the tenant to vacate the unit, in exchange for compensation. Yet these voluntarily arrangements are anything but simple. Strategic planning is critical even before any conversation with the tenant is even started.
Buyout agreements need to be especially calculated in San Francisco, Oakland, Berkeley, Fremont, and other rent-controlled jurisdictions that have layers of protections for entrenched tenants that are approached with an offer to vacate the premises. For example, San Francisco landlords are required to make specific disclosures to tenants and file declarations with the Rent Board attesting to those disclosures, before any negotiation begins.
Arriving at a mutually agreeable buyout amount can be tricky. Every buyout is unique and must take into account the length of tenancy, history of evictions, tenant protections, desirability of neighborhood, the landlord’s investment strategy and the tenant’s inclination to move, among other considerations.
Even when it seems that negotiations are going smoothly, and even if an acceptable agreement has been reached, any procedural missteps can void the agreement and expose the landlord to liability. Add to the equation the tenant’s potential ability to rescind the agreement, and a phalanx of tenant attorneys known to fight vigorously for terms most favorable to the tenant, then it is absolutely imperative that a competent landlord lawyer oversees this complicated process and protects the rights of the owner.
The landlord attorneys at Bornstein Law have negotiated hundreds of legally sound buyout agreements throughout the Bay Area and are intimately familiar with the myriad of rules that vary widely by municipality. Contact a shrewd advocate today.


More Information & Insights

From our blog: San Francisco Tenant Buyout Agreements
SocketSite: San Francisco Tenant Buyouts By The Numbers
Related: Owner Move-In Evictions

Other Landlord-Tenant Topics

Tenant Buyout Agreements

Security Deposits

Rent Control

Owner Move-In Evicitons

Unlawful Detainers

Just Cause Eviction

Airbnb & Short Term Rental Agreements

Tenant Abandonment

Rent Board Appearances

Tenant Hoarding

Marijuana in Rental Units