Housing advocates in the largest city of northern Ontario are expressing concerns about the negative impact of “cash for keys” agreements, which they say are leading to long-term homelessness for individuals. In these agreements, landlords offer tenants a sum of money, often equivalent to two months’ rent or more, to vacate the premises. This method allows landlords to avoid lengthy hearings at the Landlord and Tenant Board.
Raymond Landry, the coordinator of Sudbury’s Homelessness Network, highlighted that while the initial cash offer may seem appealing, the city’s low vacancy rates and high rents mean that recipients often struggle to secure alternative housing after a few months. Many tenants who accept these agreements are already in vulnerable positions, relying on programs like Ontario Works and the Ontario Disability Support Program (ODSP) to assist with rent payments.
Evie Ali, the executive director of the Go-Give Project, a charitable organization supporting individuals with substance use disorders in Sudbury, described cash for keys agreements as a loophole to expedite evictions. She noted a concerning trend where many individuals who accept these offers end up homeless shortly afterward.
Sherry Jordan, the owner of Jordan Group Property Management overseeing approximately 300 properties in Greater Sudbury, revealed that her group frequently extends cash for keys deals to tenants, particularly in cases of rent default. Landlords opt for this approach to swiftly resolve tenancy issues without involving the formal eviction process.
Jordan emphasized that accepting the cash offer can benefit tenants who were already in arrears and facing eventual eviction. The payment provides them with the opportunity to find affordable housing elsewhere. However, she also stressed the need for provincial government support to ensure that individuals on social assistance programs can cover their basic housing needs amidst rising rental costs.
Chris Clarke, a spokesperson for Ontario Minister of Children, Community and Social Services Michael Parsa, disclosed that ODSP rates have seen a 20% increase since September 2022, with a recent 2.8% hike in July 2025 tied to inflation. The government has also raised the earnings exemption for ODSP recipients by 400%, enabling individuals to earn an additional $200 monthly without affecting their benefits.
Despite these adjustments, the Ontario Living Wage Network argues that a single person in northern Ontario now requires a minimum wage of $21.10 per hour to meet basic living expenses, underscoring the ongoing challenges faced by vulnerable individuals in the region.