Landlords often want to avoid the risk of going to trial when a tenant fails to pay rent.
This is because going to trial to recover back-rent requires long days in court, and with a settlement, both parties feel like they have some level of control over the result of the dispute. In order to reach a fair settlement, both sides will have to “give something up” to come to a resolution that both parties feel comfortable with.
When it comes to landlord-tenant eviction matters, settlements are generally reached when the landlord gives the tenant a reasonable amount of time to fix the violation. The following are examples of common settlement agreements reached in non-payment eviction cases.
Agreement to Vacate
With this settlement agreement, the tenant and landlord agree on a date by which the tenant must vacate the premises without making payment to the landlord. The agreement is that the landlord gives the tenant more time to move out than they would if a court issued a warrant of removal.
Pay & Go Agreement
Under this agreement, the tenant must move by an agreed upon date and make rent payments to the landlord. If a tenant owes a substantial amount of money to a landlord, they can propose this type of settlement before they move out. This type of agreement usually includes a warrant of removal that isn’t executed until after the agreed upon date, and only if the tenant doesn’t make their payments by the deadline. If you want to make this type of settlement, you need to make sure it is in writing, signed by both parties, and approved by a judge.
Pay & Stay Agreement
This type of settlement allows the tenant to make one or more payments if the landlord agrees to give them more time. As long as the tenant makes the payments on time, the complaint will be dismissed. This agreement also requires a warrant of removal that will be executed if the tenant doesn’t complete the agreement. Like a pay and go agreement, you need to make sure this agreement is in writing, signed, and filed with the court.