Paying rent in pesos vs dollars

[BAwithkids]

Our current apartment has the rental contract in dollars, but we were told by the realtor that it was fine to pay the peso equivalent. Today, she informed us that we would be paying the "non official" rate of 4.30 pesos per dollar. Is that standard practice?

 

[DontMindMe]

Oh, if only there were such a thing as "standard practice" when renting as a foreigner.

Go to Google, type in "U.S. dollar to Argentine peso" and show your landlord what comes up on the screen. I've never had a landlord argue with what Google shows. Currently, it's this:

1 U.S. dollar = 4.20450723 Argentine pesos

This "non official" rate business is sketchy as hell, and something tells me it will go up every month. You could suggest setting a set peso amount to pay each month. That's what I did, but I imagine a lot of landlords/realtors wouldn't go for it. Or, offer to pay the exact exchange rate as it is each month on the day you pay rent. So if you pay today, it would be X dollars x 4.204blahblah pesos. Maybe next month it will be X dollars x 4.3567blahblah pesos.

You never can tell how they'll react to this type of stuff, but hopefully she will agree to one of these options. Getting whatever agreement you come to in writing with both of your signatures won't hurt. Hope this helps.

 

[Slopey]

Just a suggestion - show them the Banco de la Nacion website instead of Google. Some people have a perception that the Google rate is unrealistic.

In my last apartment rental, I had an arrangement with the owner that we would check Banco de la Nacion's rates on the morning that the rent was due, and use that rate for the month. It worked pretty smoothly - but it was only for a few months, so I didn't have to worry about fluctuations.

http://www.bna.com.ar/ (The rates are always in a little green box on the right, mid-page)

 

[PhilipDT]

I pay rent denominated in dolars with peso notes at the "best" rate under dolarhoy.com.ar

Just as a data point.

If someone madates that you pay the en negro rate, I'd call the afip.

 

[citygirl]

What is the current rate to buy dollars? If you don't pay in dollars, your landlord will have to go to the bank and change those pesos into dollars. As such, it is usual that they add a little extra to cover the cost (and PITA factor) of having to buy in dollars.

 

[DontMindMe]

As such, it is usual that they add a little extra to cover the cost (and PITA factor) of having to buy in dollars.

This is true, and you make a good point. But those of us without garantías have to deal with the PITA factor that every 6 months to a year, rent goes up by a pretty big amount if you're looking for a new place or renewing, even when our wages don't. Matilda's in San Telmo just shut down and has to look for a new location for this very reason, or at least that's the word on the street. Another evil landlord jacking the rent price to astronomical levels.

I think getting thousands of pesos in en negro income every month is a pretty sweet deal for whoever collects the rent, and that they can deal with buying dollars. How many of these apartment owners actually pay taxes on what they make?? If it's outside of an agency and they take cash, I'm gonna guess...none. So they can take their ass to the bank.

Sorry citygirl, this is not directed at you, but rather all the assholes in apartment rentals who take advantage of every foreigner they can.

 

[Empshel]

Just as a reference point, the agency I've used the last few times has charged me the current rate (not sure how that is defined) +.03. About a month ago, I was charged 4.24 and the rate I was pulling off of google was around 4.21, so it seemed on the up-and-up. Seeing as .03 was less than a one percent markup, I was okay with being saved the trouble of converting the money myself.

 

[TheBlackHand]

Here is my advice. Go to the bank with your Pesos, exchange them for Dollars and then pay your rent in the agreed upon currency. Unless you have a specific reason for not wanting to do this ?

 

[BAwithkids]

Here is my advice. Go to the bank with your Pesos, exchange them for Dollars and then pay your rent in the agreed upon currency. Unless you have a specific reason for not wanting to do this ?

Will I be charged a fee for doing this? Or will I simply exchange at the listed amount? I haven't actually exchanged money here, since we've just withdrawn pesos from ATMs and used those...