Cash for Keys ROI Calculator

About Cash for Keys in Canada

A "Cash for Keys" agreement is a voluntary contract where a landlord pays a tenant to move out, typically used to regain possession of a unit to achieve current market rents or perform extensive renovations.

• Legal Compliance: In provinces like Ontario, this is often formalized using an N11 Form (Agreement to End the Tenancy). It must be mutually agreed upon and cannot be forced.
• The Math: The investment makes sense when the Total Cost of Turnover (buyout amount + renovation costs + lost rent during vacancy) can be recovered quickly through the higher monthly rent.
• Payback Period: Most investors aim for a payback period of 12 to 24 months. If it takes longer than 3 years to break even, the buyout offer might be too high or the renovation costs too extensive.