Need Advice - rent in dollars

[mybeautifulair]

My roommate and I are in the middle of a truly Argentine experience and looking for advice from seasoned expats.

We signed an apartment 1 year lease with price fixed in dollars, and we were clear when we signed the contract that although the price would be fixed in dollars, we earn and live in pesos and would pay the dollar equivalent in pesos.

In November we had no problem with this, but now in December our landlord came to us and insisted we pay in dollars. Of course we were unable to buy dollars just like everyone else, but tried none the less. We explained to our landlord that we were unable to purchase them and would have to pay in pesos as agreed. Now they are insisting that we pay them the equivalent based on the black market exchange rate - which is .25 - 50 cents higher. We don't think this is fair.

It is my most sincere wish that this post will not turn into a bitch-fest - we really are looking for serious advice. How should we handle this situation, what should we say to our landlord and how should we say it, so as not to offend nor prolong an argument? We are very happy in our beautiful apartment and want to maintain a good relationship with the landlord, without getting screwed over by exchange rates. What is the best way to handle this? Is it fair for them to go by the black market rate?

Thanks for any advice.

PS - buying dollars in the US with pesos will cost you five pesos per dollar.

 

[Bajo_cero2]

When you have been renting over 6 months, then it is considered a 2 years contract.
The housing contracts in dollars are forbidden by the law. You should pay in pesos at the official rate. However, it is a bad idea to argue that with your landlord.
So, I suggest you send a carta documento and ask for a mediation. I am sure your landlord is going to freak out.
I suggest you rush because Court and lawyers vacations beggings in January.

Read my replies in this thread:

http://baexpats.org/expat-life/18817-whats-deal-usd-argentina.html

Regards

 

[cruizes]

So, I suggest you send a carta documento and ask for a mediation.

It has been my experience that even if you send a carta documento and ask for a mediation that the landlord simply says that they don't want to get involved. And of course the mediation department does nothing to help you. This happened to me and to this day I have still been screwed by a greedy landlord.

 

[2GuysInPM]

There's been a few threads like yours recently. Check these out and also search for "rent dollars" using the search feature above.

http://baexpats.org/expat-life/18729-exchange-rate-robbery-reasonable.html

http://baexpats.org/expat-life/18387-dueno-says-they-now-calculating-4-65-a.html

http://baexpats.org/newcomers-forum/18432-what-do.html

Good luck!

 

[TrevorCito]

If you have exhausted all other avenues and your landlord still wont play ball then suggest involving Afip somehow. I recently read a thread where somebody did this and the landlord backed down.

 

[starlucia]

Hmm. Maybe, in the nicest language possible, explain that you do understand her predicament and probable inability to buy dollars at the bank for the official rate. And then... politely but firmly, try to make it clear that unfortunately, that's just not your problem. As Davidglen77 recently mentioned on here, Argentine real estate owners chose to invest in what they knew to be an unstable, crackpot economy. And now it's blowing up in their faces a little. So, yeah, sucks for them, but you can't be expected to pay for the risks of their investment. As a tenant and a foreigner, your only obligation is to the legal, official rate backed by the government and Banco de la Nacion (and honestly, if this landlady has any sense, the value of retaining two responsible, long-term, gainfully-employed tenants will ultimately trump the few bucks she'll be losing in her monthly currency-exchange transactions.)

 

[sesamosinsal]

When did you go buy dollars? Has anyone taken ATM receipts showing the transaction taking place that same day (as well as a valid passport with a non-expired visa) to buy dollars at a bank (recently)? Heck, I think I might do it tomorrow just to report back here and see how the experience goes. It's been a few weeks since this regulation went into effect; one would think that it had been resolved for those who show proof of income.

 

[Thuraya]

I agree that you, the renter, shouldn't have to take the flak for the restrictions on buying dollars, that's ridiculous. I think arguing and debating and haggling are very much the expectation though, so you shouldn't see it as too conflictual to confront your landlord and say you're not going to do it. Maybe to keep the peace you could offer to pay something in between the black market rate and the official rate as a compromise.

 

[Zissou]

Could someone clarify this for me: can foreigners not just go to an exchange house or bank and buy USD (with pesos) at the day's rate? (or rather, why can't they?) I thought the restrictions were being placed on Argentines...

 

[scarface]

Bajo_cero2 is an AR lawyer who has opinined here and in the thread to which he linked that a contract term requiring rent to be paid in dollars is void and unenforceable. In a court of law the landlord would be required to accept pesos at the legal rate of exchange. Here is the law he cited:
Ley 23.091.
Art. 1º Instrumentación.
Los contratos de locaciones urbanas, así como también sus modificaciones y prórrogas, deberán formalizarse por escrito. Cuando el contrato no celebrado por escrito haya tenido principio de ejecución, se considerará como plazo el mínimo fijado en esta ley y el precio y su actualización los determinará el juez de acuerdo al valor y práctica de plaza.
En todos los supuestos, los alquileres se establecerán en moneda de curso legal al momento de concretarse. Será nula, sin perjuicio de la validez del contrato, la cláusula por la cual se convenga el pago en moneda que no tenga curso legal. En este caso, el precio quedará sujeto a la determinación judicial.

Assuming this is a correct statement of the law and that Bajo_cero2 is correct, I suggest you bring this law to the attention of the landlord in a non-threatening manner. Politely offer to split the difference. Today the difference is about 30 centavos per dollar (4.30 vs 4.60) so you would pay 4.45 pesos per dollar. A very good deal for the landlord. Of course, the degree to which you will sacrifice your legal right to pay in pesos at the legal rate is ultimately up to you, but you should be aware of what your legal rights are when negotiating any compromise. The deal you strike will depend on how much of a good deal you are getting and how impoprtant good relations with the landlord are to you.

You don't indicate how many months remain on your lease. If it just started in Nov., you also might want to consider agreeing to a formula capping the amount of the differential payment in case the black market rate soars drastically. For example, you can agree to split the difference but only up to 30 centavos per dollar no matter how much it actually becomes.
A reasonable landlord should go along with a reasonable offer of compromise tactfully presented. If your offer is rejected I would then consult with a lawyer. Or do the following.

Make the proper offer calculated at the higher legal rate (today 4.30) in writing and personally deliver it to the landlord. If you have a checking account and are paying rent by check I would include a check in the calculated amount. If you have agreed to pay in cash I would offer the cash with the letter offering it as payment in full pursuant to the apllicable law. Have a witness or two with you when and if you do this. Ask for a receipt if he is willing to give you one. If he accepts the cash but wont give a receipt, write a registered letter stating that is what he did. Keep a copy.

Bajo_cero2 can give you better advice than me, but I seriously doubt the landlord can evict you without going to court and if he does you will have the upper hand.