Paying rent in pesos vs dollars

[Davidglen77]

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 I haven't actually exchanged money here, since we've just withdrawn pesos from ATMs and used those...

You are going to have a difficult time exchanging pesos for dollars if you don't have a bank account here. Most banks will not change pesos for dollars if you are not a client anymore due to a new anti-moneylaundering law. Honestly, just ask them in a business like way if you can just give them the pesos equivalent on the day you pay the rent based on the published bank rate for banco de la nación Argentina:
http://www.bna.com.ar/bp/bp_cotizaciones.asp?op=m
Even if you agree to pay in dollars, they can't force you to do so, the rental contract law, Ley de Alquileres 23.091 states that rental contracts have to be in "moneda de curso legal" which if I am not mistaken are still Argentine pesos http://www.inquilinos.org.ar/leyalquiler.asp and if you are paying them in dollars you are doing them a big favor. Keep in mind though that if you refuse to pay them in dollars and just give them the equivalent in pesos and you want to renew the rental contract at some point they will probaby refuse.
From past experience, it's not worth anything to you to be so honest and agreeable here with these types of things. If you are they will see you as weak or boludo and will try and jerk you at some point in time, either by not doing repairs, not returning your security deposit, accuse you of breaking things.......the list goes on and on. It's unfortunate, but Argentine landlords and inmobiliarias have earned their own lousy and dishonest reputation. Not to say there aren't ANY honest ones, but they are not the norm. Good luck.

 

[citygirl]

Actually, there is always debate about whether or not it is legal to put rents in dollars for short-term, "tourist" rentals.

You can exchange money at a casa de cambio and many people to do. That being said - you'll pay two fees. One to take your money out of the local ATM where you'll have the ATM fee and normally a foreign exchange fee to convert your dollars to pesos. Then you'll pay the difference again to change it back to dollars. Probably greater spread than the 7 or 8 centavo difference that the landlord is asking for

Look - I don't think landlords are necessarily being "assholes" because they want the rent in dollars. Most people here don't keep their money in pesos if they have the option (whether or not they pay taxes on it is a different issue and one personally I didn't worry myself with when I was a renter). When I signed rental contracts, the rent was ALWAYS specified in dollars. And if I paid in pesos (as I often did), I usually put in a cushion as I knew the landlord would have to then go to the bank and change it into dollars.

Personally, I just think it's a matter of picking your battles wisely. Would I fight over 5 or 6 centavos? Nope. If you don't want to pay it, you always have the option of changing the money into dollars.

 

[sesamosinsal]

Actually, there is always debate about whether or not it is legal to put rents in dollars for short-term, "tourist" rentals.

You can exchange money at a casa de cambio and many people to do. That being said - you'll pay two fees. One to take your money out of the local ATM where you'll have the ATM fee and normally a foreign exchange fee to convert your dollars to pesos. Then you'll pay the difference again to change it back to dollars. Probably greater spread than the 7 or 8 centavo difference that the landlord is asking for

Look - I don't think landlords are necessarily being "assholes" because they want the rent in dollars. Most people here don't keep their money in pesos if they have the option (whether or not they pay taxes on it is a different issue and one personally I didn't worry myself with when I was a renter). When I signed rental contracts, the rent was ALWAYS specified in dollars. And if I paid in pesos (as I often did), I usually put in a cushion as I knew the landlord would have to then go to the bank and change it into dollars.

Personally, I just think it's a matter of picking your battles wisely. Would I fight over 5 or 6 centavos? Nope. If you don't want to pay it, you always have the option of changing the money into dollars.

Argentine law clearly states that rentals can be in dollars. The "Ley de Alquileres" used to prohibit that, but that specific clause was dropped in 1993 by the Minister of Economy and Public Services:

Resolution 144/93: "Artículo 1º — Interprétase que la Ley 23.928 ha derogado el segundo párrafo del artículo 1º de la Ley 23.091, pudiendo las partes contratantes determinar la moneda de pago de los alquileres o arrendamientos que acuerden."

Law 23.091 is the Ley de Alquileres.

 

[starlucia]

I don't think landlords are necessarily being "assholes" because they want the rent in dollars. Most people here don't keep their money in pesos if they have the option

Which is understandable. But the tenant certainly shouldn't have to pay (either in time, fees, or the stress of carrying a wad of cash to the casa de cambio) because the Argentine landlord likes a more stable currency. The landlord can get his own ass to the bank, and foot the exchange fees himself.

Frankly, I think it's unreasonable enough that landlords expect rent paid in full in DOLLARS upon arrival, and won't accept bank transfers, credit cards, or even Western Union. So tourists are put in the horrible position of carrying thousands of dollars in cash through airports, plane rides, and South American cities, because they don't want to pay taxes.

 

[RSPlayer]

One thing to remember is that there is a different official rate that the bank quotes for buying (compra) and selling (venta) a given foreign currency such as U.S. dollars. It has been my experience (not with landlords, but other situations), that if you have an agreement, written or verbal, to pay something in U.S. dollars, then later agree to pay in pesos, you will need to pay the rate that the bank, (for instance Banco Nacion) quotes to sell U.S. dollars, because the landlord (in theory) has the “right” to take your pesos to the bank and buy U.S. dollars to end up with exactly the same amount of U.S. dollars in their pocket as was stipulated in the original agreement. Of course this “fact” is completely independent of any convenience or inconvenience of needing to go the bank, etc., etc. Lots of things like property, rent, etc. in Argentina are priced in U.S. dollars to eliminate the fluctuations in exchange rate. So, as I said, if the seller prices something in U.S. dollars, he/she expects to receive that exact amount of U.S. dollars, today, tomorrow, or next year, no matter what happens to the local currency. Changing the paper money then becomes simply a formality/inconvenience. Disclaimer: I am not an economist nor have I played one on TV.

 

[Davidglen77]

One thing to remember is that there is a different official rate that the bank quotes for buying (compra) and selling (venta) a given foreign currency such as U.S. dollars. It has been my experience (not with landlords, but other situations), that if you have an agreement, written or verbal, to pay something in U.S. dollars, then later agree to pay in pesos, you will need to pay the rate that the bank, (for instance Banco Nacion) quotes to sell U.S. dollars, because the landlord (in theory) has the “right” to take your pesos to the bank and buy U.S. dollars to end up with exactly the same amount of U.S. dollars in their pocket as was stipulated in the original agreement. Of course this “fact” is completely independent of any convenience or inconvenience of needing to go the bank, etc., etc. Lots of things like property, rent, etc. in Argentina are priced in U.S. dollars to eliminate the fluctuations in exchange rate. So, as I said, if the seller prices something in U.S. dollars, he/she expects to receive that exact amount of U.S. dollars, today, tomorrow, or next year, no matter what happens to the local currency. Changing the paper money then becomes simply a formality/inconvenience. Disclaimer: I am not an economist nor have I played one on TV.

I don't think anybody is disputing that the landlord isn't entitled to the peso equivalent of the agreed $dollar denominated rental contract and of course it would be paid at the "buy" rate, which is usually 4cents higher than the "sell" rate since the landlord would then have to buy those dollars. The big inconvenience is the landlord having the tenant buy those dollars and having to carry them around to pay them their rent. They should make things here a bit more "user friendly" especially when you have a paying customer at the other end!

 

[sesamosinsal]

The solution to this might be for renters to refuse to rent an apartment that doesn't allow payment in pesos. (List the rent in dollars, but allow it to be payable in the ARS equivalent.) Most landlords will have a hard time turning down a prospective tenant that likely has the cash to rent their property, and I assume the agencies would have a hard time saying no to that as well.

 

[TheBlackHand]

To answer your question, you will not be charged any additional rate other than the rate that the bank is selling Dollars at. If by any chance the bank won't sell you Dollars because you are not a legal resident and cannot open a bank account in Argentina, you can always go to one of the many Casas de Cambio's around the city. They will exchange your Pesos at the daily rate as well and you do not have to have a bank account.

There seem to be alot of conflictive and or hysterical replies to your question, but there is no need to create conflict or ill will with the landlord. If you agreed to pay in Dollars at the contract signing, just do so. Making threats is no way to ask for favors and, besides being rude, will eventually backfire on you at one point or another. Just fulfill your part of the contract and have a great time in Buenos Aires.

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...

 

[citygirl]

Which is understandable. But the tenant certainly shouldn't have to pay (either in time, fees, or the stress of carrying a wad of cash to the casa de cambio) because the Argentine landlord likes a more stable currency. The landlord can get his own ass to the bank, and foot the exchange fees himself.

Frankly, I think it's unreasonable enough that landlords expect rent paid in full in DOLLARS upon arrival, and won't accept bank transfers, credit cards, or even Western Union. So tourists are put in the horrible position of carrying thousands of dollars in cash through airports, plane rides, and South American cities, because they don't want to pay taxes.

Unreasonable as it may seem to you or anyone else, if you have agreed to a contract that stipulates payment in dollars, you (the tenant) has an obligation to PAY IN DOLLARS. Simple as that. Don't like it - don't sign the contract. If the landlord agrees to let you pay him/her in pesos, then it's reasonable they will charge you at the "buy" rate since that's what they'll be doing (and probably add in a convenience charge).

Why are people shocked by this? And Starlucia, I think you would find the need to pay in full when moving in for a short-term rental is 100% standard everywhere. I certainly have had to pay my week's stay or what have you anytime I have rented a vacation rental - upon arrival. Some agencies do take credit cards but I don't know any private owners that do. And you can't just do a "bank transfer" into Argentina. So how else to do it but get payment in cash?

And despite the common assertion that it's about avoiding taxes, usually an owner wants the payment in full and security deposit up front b/c he or she is taking a big risk renting out the apt. I've never stayed in an apt where the rent would have covered the potential exposure that a landlord has in terms of damage to the apt, possesions, et al. Therefore, it's always seemed 100% reasonable to me that a landlord would request payment in full for a short-term rental up front.

(Obviously for rentals of a month or longer, usually an owner - in my experience - will understand and agree to monthly payments.)

=

 

[starlucia]

And Starlucia, I think you would find the need to pay in full when moving in for a short-term rental is 100% standard everywhere. I certainly have had to pay my week's stay or what have you anytime I have rented a vacation rental - upon arrival. Some agencies do take credit cards but I don't know any private owners that do. And you can't just do a "bank transfer" into Argentina. So how else to do it but get payment in cash?

Indeed. I recently rented an apt. in Madrid and paid the 6 weeks' rent + deposit upon check-in. IN EUROS, which, being the legal currency, I was able to get from any ATM. But in Argentina, you can't just "get" the currency they are demanding -- even if, in your very first hours in Buenos Aires, you do find an ATM that dispenses dollars, the daily limit is $300 USD per day! You can't even wire yourself the money via Western Union and pick it up when you arrive, since WU no longer pays out in dollars. Meaning that the ONLY option for most foreigners checking into an apt. is to carry thousands of dollars of cash into Argentina, and that is a really crappy thing to demand. Sorry, but ATMs only dispense your legal currency of pesos? You accept the rent in freaking pesos, and then go exchange them yourself. I think the bodily safety of your new tenants is worth the minor inconvenience.