That's actually a really good idea. I'm sure it does save quite a bit of money. Have you had anyone turn down your offer?
No, they all take the deal. I am pretty persuasive. An eviction is a minimum of a $15,000 cost to me 9+ months rent, legal fees, not to mention damages. If I can give someone $1500-$2000 I come out ahead.
Now I don't make a practice of renting to people where this will be a problem, but every once in a while I make a bad pick, or someone's situation changes dramatically.
Ironically, (I hold my property in individual corporations) I once had the same person fill out an application for another property I owned, that I had just paid to leave my other building 3 years earlier. Shockingly, she was not approved!
Tenants and squatters have tons of rights in IL, and the courts take forever. In the house I live in, my next door neighbor choose to rent his single family house out, two months into the lease the tenants stopped paying rent. I told him to pay them to get out of there. He declined my advise. The "tenants" were professional deadbeats, they knew the law well and hired a lawyer themselves. It took him 15 months to get them evicted. When he added up his costs: lost rent, legal fees, and damages he spent just under $100,000. The rent was not that much I think $2000 a month; but they destroyed the house. All the flooring, drywall, doors and trim had to be replaced in a 3000 square foot house, along with the deck and some exterior windows. He hired a cleaning service, once they were out and 4 ladies spent two full days cleaning (the upside for me was I found a new really good cleaning service for my building). The entire lawn was destroyed, and so was the shed in the back yard.
I had to write a letter giving him (the owner) permission to be in my back yard--so he could try and keep tabs. His "tenants" would call the police if they saw him, so with the letter he could at least say he was at my house. If the "tenants" did not end up in a domestic situation where I ended up calling the police I don't know if he would have ever gotten them out of there. The "tenants" had a bunch of kids 5 or 6, not really sure; and I was always friendly to the kids (not their fault their parents are deadbeats). Well the dad beat the crap out of 7 year old and she came over to my house crying and bloody. I had her wait in the garage with me and another neighbor (who is a mandatory reporter in IL) while I called the Sheriff (wanted to make certain we didn't get accused of beating the kid). The dad got hauled off to jail, and about two weeks later, they were gone.
I have had great success as a landlord over the past 10 years, but there are certainly some nefarious people looking to find ways of living for free. In addition to being dead beat tenants ( and in the father's case a child beater), these people were also professional identity thieves. While they lived next to me, the state and federal authorities served a couple of warrants on the house and took van loads of print material and computers out of the house. The second time it happened, one of the other neighbors asked the cops why they were there, and the cops told her it was related to identity theft and internet fraud. Just so we are clear, I live in a really nice suburb.