Relocation assistance in real estate refers to the timely and cost-effective removal of a property’s inhabitants in exchange for cash considerations.
While a relocation assistance agreement may be enacted for a number of reasons, there are generally four scenarios in which it makes the most sense for landlords. Our team has you covered!
Vacating Homeowners After The Foreclosure Process:
Relocation Assistance offers aren’t relegated solely to homeowners. Lenders that repossess properties can use the relocation assistance technique to remove delinquent homeowners once the property becomes real estate-owned (REO). In doing so, the lender may offer assistance for the owner to relocate, in return for the ability to show and sell the property to a subsequent buyer.
Vacating Tenants After the Foreclosure Process:
Again, the bank may offer relocation assistance in the event a delinquent loan turns into a foreclosure. That said, it’s entirely possible for renters to be living in said property. The bank may, therefore, make an offer to the renters (instead of the owner) to help relocate them. Doing so is a lot easier than pursuing an eviction, and more cost effective.
Vacating Tenants from Rental Properties:
Homeowners themselves may initiate a relocation assistance agreement if they want to remove a tenant from their property and the lease. That said, a homeowner may use this strategy to remove existing tenants from a home they just purchased or a long-term tenant they already have a lease agreement with.
Vacating Squatters:
It is a sad truth, but a reality, nonetheless: opportunistic “squatters” will illegally move into a vacant home and demand to be evicted. More importantly, evicting squatters may require landlords to actually follow through with the eviction process. While squatters have fewer rights than tenants, they can represent a huge headache for real estate investors unfortunate enough to have gotten caught up in the situation. As a result, relocation assistance may once again be the easiest solution to get rid of unwanted guests.