Housing Advocates Warn “Cash for Keys” Deals Fuel Homelessness

Housing advocates in Sudbury, Ontario, are raising concerns that “cash for keys” agreements are contributing to long-term homelessness for vulnerable residents. These arrangements typically involve landlords offering tenants cash, often equivalent to two months’ rent or more, to vacate their homes. While this might seem beneficial, the reality is often more complicated, especially given the city’s low vacancy rates and rising rents.

Raymond Landry, co-ordinator of the Sudbury Homelessness Network, explained that tenants who accept cash offers may find themselves in a precarious situation shortly after moving. “When they take that cash, if they’re not aware of the housing situation as it is, they’ll realize that being given $3,000 or $5,000 will not take you far into this housing market,” he stated. Many tenants who receive such offers are already in vulnerable positions, often relying on programs like Ontario Works and the Ontario Disability Support Program (ODSP) to help with rent.

Evie Ali, executive director of the Go-Give Project, an organization that assists individuals with substance use disorders, echoed Landry’s concerns. She described cash for keys as a “loophole around the eviction process,” noting a marked increase in homelessness over the past two years among those who accept these offers.

Landlord Perspectives on Cash for Keys Agreements

Sherry Jordan, owner of Jordan Group Property Management, manages approximately 300 properties in Greater Sudbury. She explained that cash for keys deals are commonly presented to tenants who have already defaulted on rent. “Instead of going through the process of the Landlord Tenant Board, they could go directly to the tenant and offer them some money to leave by a certain date,” Jordan noted.

Jordan also mentioned that her company often forgives any rent arrears if the tenant accepts the cash offer. She believes this can be advantageous for tenants already facing eviction due to missed payments. “The cash payout gives them an opportunity to find a place they can afford,” she said.

Despite this perspective, Jordan emphasized that the responsibility also lies with the provincial government to ensure that individuals dependent on assistance programs can afford housing. With bachelor apartments in Sudbury costing upwards of $1,000 per month, the challenge becomes significant for those relying on government support.

Government Response and Economic Challenges

A single person receiving ODSP can get up to $1,408 per month for basic needs and shelter, while those on Ontario Works can receive up to $733 monthly. Chris Clarke, a spokesperson for Ontario Minister of Children, Community and Social Services Michael Parsa, stated that ODSP rates have increased by 20 percent since September 2022, with a recent inflation-linked adjustment of 2.8 percent in July 2025.

Clarke also highlighted that the earnings exemption for ODSP recipients has risen by 400 percent, allowing individuals to qualify for an additional $200 monthly without affecting their benefits. Furthermore, Ontario’s minimum wage increased to $17.60 per hour in October.

Despite these adjustments, the Ontario’s Living Wage Network argues that a single individual in northern Ontario needs to earn at least $21.10 per hour to cover basic living costs. This discrepancy illustrates the pressing need for effective housing solutions in the region.

As Sudbury navigates these challenges, advocates continue to call for more comprehensive support systems to prevent homelessness and ensure that those in need have access to affordable housing. The complexities of cash for keys agreements underscore the importance of addressing the root causes of housing instability in Ontario.