No amount is set by law: a cash for keys offer is freely negotiated, often the equivalent of 2 to 6 months of rent, sometimes much more. The right benchmark isn't a magic number — it's the value the departure creates for your building. Calculated well, a four- or five-figure offer can be one of the most profitable moves you'll make on an income property in Québec — provided the agreement stays 100% voluntary and in writing.
In this article
The real ranges in Québec
There is no official rate. But on the ground, voluntary move-out agreements most often fall between the equivalent of 2 and 6 months of rent. For a unit at $1,200 per month, that's a range of roughly $2,400 to $7,200.
When the gap with the market is enormous, or the landlord has a pressing plan (sale, major renovation), the amounts climb: $10,000, $20,000, sometimes $30,000 and up. This isn't blind generosity — it's a direct reflection of the value at stake. The further below market the rent is frozen, the more the departure is worth, and the more sense it makes to pay to obtain it.
Why no amount is set by law
Cash for keys is not an eviction: it's a mutually agreed lease termination. The Civil Code of Québec lets both parties end, by common accord, a contract they entered into together. A lease is a contract; the landlord and tenant can therefore agree to end it, on the conditions they choose, with compensation.
The direct consequence: there is no scale, no ceiling, no minimum. The Tribunal administratif du logement (TAL) imposes no figure. Everything is negotiated according to what each party is willing to accept. That's what makes "how much to offer?" both open and tricky: without a calculation benchmark, you're offering blind. Hence the importance of starting from the right base. For the full framework, see our complete guide to cash for keys in Québec.
The real math: start from the value created
The value of a rental property doesn't depend on the bricks: it depends on the net income it generates. The formula used by buyers and lenders is simple:
At a 5% cap rate (capitalization rate), each additional dollar of annual net income multiplies value by 20 (since 1 ÷ 0.05 = 20).
To set an offer, the logic comes down to three steps:
- Calculate the monthly gap between the current rent and the market rent.
- Multiply by 12, then divide by your cap rate: that's the value the departure creates.
- Set your offer as a fraction of that value — often 10 to 20%.
A gap of $600 per month is $7,200 per year in additional income.
At a 5% cap rate: $7,200 ÷ 0.05 = $144,000 in added value once the unit is brought back to market.
An offer of $10,000 to $20,000 (7 to 14% of the value created) therefore stays highly profitable, while still being a substantial sum for the tenant.
This calculation is conservative: it counts only a single unit. In a building where several units lag below market, the effect compounds. To picture the result on your own building, try our value calculator.
Is it worth paying $10,000?
In the example above, yes, without hesitation. Paying $10,000 to unlock $144,000 in value is a return on the order of 14 to 1. Even at $20,000, the net gain approaches $124,000. It's not an expense: it's a very high-yield investment.
Better still, that value is refinanceable. Once the rent is raised and the building is reappraised, a refinance at a 75% loan-to-value ratio lets you pull out roughly $108,000 in cash from the $144,000 created — enough to fund your next acquisition or recover your dormant equity.
The question, then, isn't "is $10,000 expensive?" but "$10,000 to unlock how much?" When the rent gap is small, a big offer isn't justified. When it's large, underpaying out of fear of the number costs you far more than being generous.
Key takeaway
The right offer isn't "as little as possible." It's the amount that makes leaving worthwhile for the tenant while remaining a fraction of the value created for you. An agreement sealed at $20,000 is often worth more than a failed negotiation at $8,000.
The factors that move the amount
Two identical units can command very different offers. Here's what moves the needle.
| Pushes the offer up | Pushes the offer down |
|---|---|
| Very large rent gap | Rent close to market |
| Tight market, few units available | Loose market, plenty of options |
| Long-time tenant, deeply attached | Tenant already thinking of leaving |
| Special protections (e.g., seniors) | No special protection |
| Landlord under time pressure (sale, deadline) | Patient landlord, no deadline |
| Long lease or solid renewals | Lease end approaching |
One principle: never start with your maximum number, but avoid the insulting offer. Proposing $1,500 for a unit that holds $144,000 in value puts the tenant on the defensive and slams the door. A credible, respectful opening number hints at a possible agreement — and often, a little flexibility on the move-out date or the payment schedule unlocks the deal without raising the amount.
Always a voluntary, written, legal offer
The amount is worth nothing if it isn't framed correctly. A cash for keys is valid only if it is voluntary, informed, written, and signed by everyone on the lease. It's the appeal of the offer that makes the tenant agree — never coercion.
Strictly prohibited: pressure, harassment, threats, deliberate cutoff of services (heating, hot water), disruptive work carried out on purpose, or disguised eviction. These behaviours are illegal, can vitiate the agreement, and expose the landlord to damages before the TAL. The tenant always has the right to refuse and stay.
The written agreement must specify the identity of the parties, the address, the exact date of lease termination and handover of the keys, the amount and payment schedule (ideally part on signing, the balance on handover of the keys), the condition the unit must be left in, and a mutual release clause. Our cash for keys kit provides the agreement template and the calculation grid.
This article is provided for informational purposes and does not constitute legal advice. The rules of the TAL and the Civil Code of Québec evolve — always confirm the applicable terms or consult a professional.