When Does Cash for Keys Actually Make Sense? (vs. Going to the LTB)
Cash-for-keys costs money up front and only works if the tenant agrees. In the right situation, though, it gets you vacant possession faster and with more certainty than an LTB case. Here is how to decide.
Key points
- Compare the payment with the real cost of the LTB route: lost rent, time and risk.
- It works best with a cooperative tenant and a clear deadline, like a sale or renovation.
- Record it on a signed N11 and pay the balance only when you get the keys.
- A tenant can’t be required to sign an agreement to end the tenancy, and pressure can make it challengeable.
Cash-for-keys is a business decision. The question isn’t whether you can win at the LTB. It is which route gets you the unit back at the lowest total cost and risk.
The core math
Compare the payment with the cost of the alternative. Hearing wait times vary and can stretch for months. Add the rent you may not collect, filing fees, representation costs and the risk of a dismissed application. If the tenant pays well below market rent, every month of delay costs more.
When it works
- The tenant is cooperative and open to moving.
- You have a firm deadline, such as a closing date or a renovation start.
- Your legal route is uncertain or slow, for example a contested N12 or N13.
- An own-use N12 isn’t available, such as when the person moving in isn’t an eligible family member.
Weighing a buyout against the LTB? Book a free 20-minute call.
Book a free 20-minute call →When it doesn’t
- The tenant is using negotiations to buy time.
- The amount asked is unreasonable compared with a clean LTB route, such as an L1 for clear arrears.
- You are trying to avoid a notice you couldn’t legally serve, while pressuring the tenant. That can lead to a harassment claim.
What a good deal looks like
| Term | Why it matters |
|---|---|
| Signed N11 from every tenant | Lets you apply to the LTB with an L3 if they don’t leave |
| Exact move-out date | Needed for the N11 and any L3 |
| Payment tied to key handover | Protects you if the tenant stays |
| Condition of the unit at move-out | Avoids disputes about damage |
If the tenant doesn’t leave, file the L3 no later than 30 days after the date in the N11. Since September 21, 2026, the Board can only set aside an eviction order based on an N11 if that wouldn’t be unfair, and it can’t consider changes in the tenant’s circumstances after they signed.
Frequently asked questions
Is cash-for-keys legal in Ontario?
Yes. A landlord and tenant can agree to end a tenancy at any time. It should be voluntary and in writing, usually on an N11.
How much should I offer?
There is no set amount. Compare it with the rent and costs you would lose waiting for an LTB order.
Can I make the tenant sign an N11?
No. A landlord can’t require a tenant to agree to end the tenancy.
What if the tenant takes the money and stays?
With a signed N11, apply with an L3 within 30 days of the move-out date. Paying the balance at key handover protects you.
When should I just go to the LTB?
When the tenant won’t engage, or your case is clean and quick, such as clear rent arrears.
About Bita Di Lisi
Bita is the lead paralegal at Stonegate Legal Services and is licensed by the Law Society of Ontario. She represents Ontario landlords at the Landlord and Tenant Board and teaches landlords and investors about notices, LTB timelines and the mistakes that cost months.
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