Cash for keys, bad-faith evictions — more homes are up for sale with tenants in them, and it’s leading to some tense standoffs

Across Canada, a growing trend is sparking conflict between landlords and tenants. As more rental properties are put up for sale, landlords are increasingly using "cash-for-keys" agreements or resorting to bad-faith evictions to clear out tenants. These situations often create tense standoffs, as tenants resist offers they feel are unfair or fight back against improper eviction notices.  

Cash-for-keys offers involve landlords paying tenants to leave voluntarily, avoiding lengthy eviction processes. While legal and sometimes mutually beneficial, tenants often find the payouts inadequate compared to the disruption of moving, especially in today's high-rent markets. Meanwhile, some landlords bypass these agreements by issuing eviction notices under false pretenses, such as claiming they need the property for personal use, only to sell it afterward.  

The rise in such practices is linked to an overheated real estate market. Many landlords are cashing in on record-high property prices but face challenges when selling homes occupied by tenants. Prospective buyers often prefer vacant properties, leading landlords to pressure tenants to leave before listing. This has raised concerns among housing advocates, who argue that tenants' rights are being undermined.  

Legal protections exist to shield tenants from bad-faith evictions, but enforcement is inconsistent. Tenants can file complaints with provincial landlord-tenant boards, but the process can be slow and stressful. Advocacy groups are calling for stricter penalties for landlords who abuse the system, as well as better education for tenants about their rights.  

Some tenants have successfully pushed back against these tactics, securing better compensation or proving bad faith in eviction hearings. However, others face challenges finding affordable housing in a tight rental market, especially in major cities like Toronto and Vancouver, where rents are soaring.  

As housing affordability continues to be a pressing issue, the tension between landlords' financial interests and tenants' rights highlights the need for balanced policies. Ensuring fair treatment for tenants while addressing market pressures will be key to navigating this growing conflict.