Not every landlord-tenant dispute needs to go to the LTB. In some situations, the fastest and most cost-effective path to vacant possession is a negotiated agreement where the landlord pays the tenant to leave. This is commonly referred to as cash-for-keys, and it’s more common in Ontario than most landlords realize.

What Cash-for-Keys Is

Cash-for-keys is a private agreement where the tenant agrees to vacate by a specific date in exchange for a lump-sum payment. It’s not an LTB form — it’s a contract. Both parties agree to terms, and the tenant moves out without a hearing, an order, or Sheriff enforcement.

When It Makes Sense

• The LTB backlog would put a hearing months away
• The notice or application has a realistic risk of being challenged
• The landlord needs vacant possession quickly for renovation, sale, or personal use
• The ongoing cost of the tenancy exceeds the cost of a settlement

It’s a business decision — many landlords find that paying a few months’ rent to end a problematic tenancy is significantly cheaper than a full LTB process, especially in contested N12 or N13 matters.

What the Agreement Must Include

A cash-for-keys agreement that isn’t properly documented can fall apart. At minimum it should include: full legal names of both parties, the rental address, the exact vacate date, the amount to be paid and when, how keys will be returned, and confirmation that the tenancy is terminated. Staging payments — part on signing, part on move-out — is common and protects the landlord.

Is It Right for Your Situation?

Whether cash-for-keys makes sense depends on your specific circumstances. Stonegate Legal Services works with Ontario landlords to evaluate both options. Book a free discovery call to talk through your situation.