Tenant Buyout

A tenant buyout is a voluntary cash-for-keys agreement where a tenant vacates in exchange for payment. In LA, RSO buildings must follow LAHD Buyout Notification Program rules.

What it means in practice

Buyouts let landlords achieve specific vacancy without invoking no-fault eviction grounds (with their relocation fees and Ellis Act restrictions). Requires LAHD Disclosure Notice before negotiation, signed written agreement with required provisions, 30-day tenant rescission window, and 60-day filing with LAHD.

Why it matters for LA multifamily

LA multifamily buyouts typically run $20,000–$150,000+ per tenant depending on tenure, unit profile, and motivation. For pre-listing vacancy strategies on RSO buildings, buyouts are usually the cleanest tool — voluntary, controllable timing, avoids Ellis re-rental restrictions.

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