The Hidden Risks Landlords Overlook When Accepting Keys Back Too Early

When a tenant hands over keys, many landlords breathe a sigh of relief. But accepting keys too early—without a written agreement—can create enormous legal and financial exposure. In many cases, it destroys your leverage completely.

Risk #1: You May Accidentally Terminate the Lease

Court decisions consistently show that accepting keys can signal landlord acceptance of surrender—even if that was not the landlord’s intention.

Risk #2: You Could Lose Claims for Future Rent

If the surrender is deemed accepted, you may lose the right to collect:

• Future rent
• CAM charges
• Build-out costs
• Acceleration damages

Risk #3: You Lose Negotiation Leverage

Once you have possession, the tenant has no incentive to negotiate. Your ability to obtain a release, secure payment, or enforce guarantees dramatically decreases.

Risk #4: You Risk Premises Damage Going Unaddressed

Without a documented walkthrough, you lose the ability to prove damages. Tenants know this—and may exploit it.

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Disclaimer

This article is for informational purposes only and not legal advice.