Rent Board Recommendation
to City Council:
Tenant Buyout Agreement Policy
November 4, 2025
Nicolas Traylor, Executive Director- Richmond Rent Program Lina Velasco, Director of Community Development
Presentation Overview
1. Provide an overview of Tenant Buyout Agreements and related issues.
2. Summarize policy options considered by the Rent Board.
3. Present the Rent Board’s recommended policy option.
4. Seek City Council direction to draft an ordinance based on the recommended approach.
What is a Tenant Buyout Agreement?
• A Tenant Buyout Agreement, or 'Cash for Keys, ' is a voluntary contract where a tenant agrees to vacate a rental unit in exchange for compensation.
• Why Landlords Offer Buyouts:
• Avoid eviction proceedings
• Prepare property for sale/redevelopment
• Increase rental income
• Manage difficult tenancies
Risks of Unregulated Buyouts
• Tenants may feel pressured or misled
• Vulnerable households risk losing affordable housing
• Unregulated buyouts undermine rent control and just-cause eviction protections
Policy Rationale
• Prevent Coercion & Harassment: Protect tenants from pressure tactics
• Ensure Informed Consent: Require clear disclosures and rescission rights
• Protect Affordable Housing: Prevent displacement of rent- controlled tenants
• Align with Regional Practices: Similar ordinances in SF , Oakland, Berkeley, LA, etc.
Case Study Insights
Common Elements:
• Standardized disclosure forms
• Rescission periods (25–45 days)
• Mandatory filing of agreements
• Enforcement mechanisms
Unique Provisions:
• Language access (LA, Oakland)
• Database transparency (San Francisco)
Policy Options Overview
• Option 1 – Low Oversight: Minimal requirements, short rescission, no penalties
• Option 2 – Moderate Oversight: Longer rescission, relocation standard, modest penalties
• Option 3 – High Oversight: Pre-filing, 45-day rescission, full relocation payments, stronger penalties, Rent Program oversight Why Option 3?
• 45-day rescission period
• Pre-negotiation filing with Rent Program
• Minimum payouts equal to relocation payments
• Rent Program tenant contact confirmation
• Public (non-identifying) database
• Stronger penalties for noncompliance
Preventing Circumvention of the Rent
Ordinance
• Unregulated buyouts allow landlords to bypass
• Just Cause for Eviction requirements
• Relocation payment obligations
• Tenant rights to return or retain rent control protections Administration and Implementation
• Develop disclosure/educational materials
• Conduct community engagement workshops to inform policy development prior to implementation
• Conduct ongoing outreach and community education
• Provide housing counseling
• Maintain database and annual reporting
• Coordinate with City Attorney and Community Development Next Steps
• If the City Council directs staff to proceed with a Tenant Buyout Ordinance, City and Rent Program staff will develop a Work Planthat includes:
Ordinance Development
Collaboration between the City Attorney’s Office and the Rent Program Legal Unit to draft the proposed ordinance.
Community Engagement
Joint effort by the Community Development Department and Rent Program staff to conduct outreach to renters, landlords, tenant groups, and property managers. At least three community meetings (childcare & Spanish translation provided):
1 afternoon and 2 evening sessions
Hybrid format (in-person & Zoom)
Implementation Planning
Coordination among Community Development, Internal Services, City Manager’s Office, and the Rent Program to design implementation and ongoing administration. The Rent Program would administer the Tenant Buyout Ordinance, with continued collaboration across departments to ensure successful rollout.
Recommended Action
RECEIVE a presentation of the various oversight options for a Tenant Buyout Agreement Regulations, including the Rent Board’s recommended “Option 3: High Level of Oversight, ” and DIRECT the City Attorney’s Office to work with the Rent Program to draft a Tenant Buyout Agreement Ordinance
incorporating the High-Level Oversight features contained in policy Option 3 and with Community Development to conduct tenant and landlord community engagement to inform the
proposed final ordinance – Richmond Rent Program (Nicolas Traylor/Lina Velasco 510-234-7368).