Paying Rent In US Dollars

[sergio]

Wait, let me get this straight, its actually legal for John.St to demand camels from his tenants?

Yes, but camels can be expensive like this one that cost $800,000 dollars.

http://www.emirates247.com/news/reg...-million-dollars-in-saudi-2010-12-09-1.327101

 

[John.St]

Wait, let me get this straight, its actually legal for John.St to demand camels from his tenants?

Well, unfortunately not, as camels aren't legal tender (foreign currency) anywhere, but Rai Stones (http://en.wikipedia.org/wiki/Rai_stones), other types of monies (http://en.wikipedia.org/wiki/Money#Commodity_money) and Nubian slaves should be OK.

 

[After5]

As it turns out, the second paragraph [of the Ley de Alquileres] --the paragraph that talks about payment being only in the moneda de curso legal --was stricken down by the Ministry of Economy in 1993 after reviewing a law passed in 1991. Original law here.

According to Resolution 144/93, which specifically mentions rentals, landlords can use any currency they wish to use. The most important part: "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." (In other words, the second paragraph of the original law no longer applies, and now the parties signing the contract may use whichever currency of payment that they choose.)

The timing cited makes sense, since the peso had been linked one-to-one to the dollar in 1991. With the two currencies equally valued and circulating in parallel by official policy, it was logical in 1993 to allow either currency to be stipulated in rental contracts, mortgages and the like.

Should I become a landlord in the future granting a 2-year lease, I'd certainly prefer payment in dollars. The peso could easily lose 30 or 40 percent of its purchasing power over a 2-year period. And it's tough to jack a fixed rent in pesos high enough on the front end to compensate for the currency depreciation toward the end of the rental term.

Under the current controlled peso depreciation regime, a fixed rent paid in dollars provides the equivalent of partial inflation indexing -- which would be my major objective, more than avoiding exchange hassles or taxes.

 

[mpeezay]

if bank rates & conversion fee's bother you, maybe you should look into Forex Forwards to hedge against you rent O_O

....

this is interesting stuff to learn though, I'll be coming out there in a couple months to live, I'll remember to check my contracts for camels, bails of alpaca fur, u$s, peso amounts.

.....

speaking of ATMs, when I was first out there in '07 my friend & I went into the atm room, while someone else was still inside, needless to say he started freaking out thinkin we were gonna rob him, didnt help the other atm in there was down haha. One cultural faux pas I wont be repeating hah

 

[angelskywalker]

hahahahahaah myrrha and chicken feet? hahah

I'm an argentine and used to deal with landlords. Therefore, if the contract says DOLLARS, pay dollars. Simple as that.

 

[Tangerine]

Under the current controlled peso depreciation regime, a fixed rent paid in dollars provides the equivalent of partial inflation indexing -- which would be my major objective, more than avoiding exchange hassles or taxes.

and this is why landlords have you pay in U$D