Richmond moves to tighten oversight on tenant buyout deals

The Richmond City Council voted unanimously Tuesday to move forward with regulating "cash for keys" agreements between landlords and tenants, directing staff to draft an ordinance with the strictest oversight measures.

The council approved a recommendation from the Richmond Rent Board to adopt a "high level of oversight" policy for tenant buyout agreements, in which landlords offer tenants money to vacate rental units.

"Buyouts are happening all the time in Richmond," said Nicolas Traylor, executive director of the Richmond Rent Program. "They're happening without the city's knowledge because they're just not required to record them with the city at this time."

The Richmond Rent Program, an independent agency that administers the city's rent control ordinance, will work with the city attorney's office to draft the new regulations. The program currently oversees rent control protections and eviction procedures for rental units in Richmond.

Under the proposed ordinance, landlords would be required to provide tenants with written notice of their rights before buyout negotiations begin and file that notice with the rent program. Tenants would have 45 days to rescind any signed agreement, and minimum payments would need to match what tenants would receive under the city's relocation ordinance, currently $21,009.41 for qualified households in units with two or more bedrooms.

"Without oversight, tenants, especially seniors, immigrants or low-income families, may feel pressure to take a deal without fully understanding their rights or the long-term consequences," Traylor said.

The rent program will also maintain a public database that shows buyout compensation amounts and neighborhoods, while keeping personal information confidential.

Landlords may offer tenants financial incentives to move out for a range of practical reasons. Sometimes, they want to sidestep drawn-out eviction processes, prepare a property for sale, or increase the rent to current market levels once a long-term tenant leaves. These types of agreements are also common in real estate transactions because empty units tend to attract higher sale prices.

Councilmember Soheila Bana said the city needs a better way to distinguish between large corporate landlords and small, local owners. Bana referenced a resident who had difficulty relocating his disabled mother into the duplex he owned due to these rules.

"I strongly hope those categories would be treated differently," Bana said, adding she looked forward to seeing an ordinance that "looks at it in a very fair manner and considers the situation of a landlord too."

The rent board, which debated three policy options at public meetings, unanimously recommended the high-oversight approach in July. The board had originally approved the policy in 2018; however, implementation was delayed due to the pandemic.

Before final adoption, city staff will conduct at least three community meetings with tenants, landlords, tenant advocates, and property managers. Meetings will include childcare and Spanish translation services, with options to attend in person or via Zoom.

"The public process may suggest some additional changes that weren't considered this evening," said Lina Velasco, director of community development. "There may be refinements that come back for council consideration based on feedback."

Staff expects to return to the council with a final ordinance in early 2026.

Cities such as San Francisco, Oakland, Berkeley, San Jose, and Los Angeles have already adopted similar regulations that require written disclosures, rescission periods, and the filing of agreements with local agencies. Richmond had been among the last rent-controlled jurisdictions in the Bay Area without such protections.

"We're doing our best to align both city and rent board policy around buyouts with the policies that exist in sister jurisdictions," Traylor said.

The proposed ordinance would include enforcement mechanisms that allow tenants to sue for actual damages plus statutory damages of up to $1,000 per violation.

SUPPORT LOCAL JOURNALISM - SUBSCRIBE TODAY!

Grandview Independent needs your financial support to continue delivering the news that matters to our community. Quality journalism costs money, and we can't do it without readers like you.

SUBSCRIBE NOW and get:
• Unlimited access to all articles
• Newsletters with exclusive content
• The satisfaction of backing independent local news that serves your community

CLICK HERE TO SUBSCRIBE - Starting at just $10/month

FOLLOW US FOR BREAKING NEWS:
• Twitter: @GrandviewIndy
• Instagram: @GrandviewIndependent
• Facebook: @Grandview Independent