Why Pay Rent?

[Roxana]

Despite the cultural factor, the argentinian law regarding rents changed recently as a result of a change of the Codigo Civil that came into force by the end of last year

 

[scotttswan]

Anyone had a neighbour not pay expenses for 3 years, lose their court case and have their house sold at auction?

How long before they're finally evicted?

 

[mc kenna]

Why pay rent?? because if they don't, can and will be a health hazard for the deadbeat tenant........you can write all you want on a contract, but if there's no intention honoring said terms, then we go a different route.....

 

[el_expatriado]

For those of you who pay rent I ask why you don´t try to default on your obligations? Is it easier
for a foreigner to get evicted - or is there a penalty of some type ? Are you just paying because
you´re honest ? Are you concerned about your credit rating?

The only reason to pay rent on an Argentine rental contract is to avoid getting your guarantor into trouble. There is literally no other negative effect if you don't pay. Evictions will take longer than the 2-year rental period and if there are small children involved it is probably impossible to get evicted. That's why landlords should insist on rock-solid guarantees by someone who is solvent and a close relation to the tenant.

On my rental contract, for example, it says I have to pay ABL. The city government then started to collect the impuesto inmobilario on the ABL bill as a new line item. Before this was paid for by landlords on a separate bill. So my landlord says I should pay this tax even though there is nothing in the rental contract that specifies that I am responsible for it.

However, since my guarantor is a close personal friend of mine I just pay the tax because I don't want him to get a phone call from my landlord about this issue. Even though I am in the right I don't want to get my guarantor involved in a dispute with my landlord.

That's the power of a good guarantee. The landlord can always ensure he'll get paid because non-payment will cause friction between the guarantor and the tenant.

 

[gracielle]

No to your question. I have a friend who lives in a middle class 100-unit bldg in Barrio Norte. Their administrator (who is also an attorney) has not been able to collect expenses from an owner occupied unit for the past 4 years. The man has resided in the bldg for 30+ years. He is in his late 60's, lives alone (no known family members) and is self-employed. He collects the minimum benefit amount from retirement. Additionally, every month he buys clothing in Once, loads up his pick-up and travels for 3 weeks to sell the goods to shops in backwater provincial towns.

When asked, said "No pago porque no se me da la gana.... "doesn't pay because he doesn't feel like it". After the first year the consorcio voted not to initiate legal action. They have been absorbing the cost among the rest of the residents. Reason....majority did not want to bear the financial burden of legal fees upfront and the difficulty in collecting afterwards.

Last week they had a consorcio meeting to discuss increases due to the "tarifazo" and the increase in late payments (30-60 days) by other residents. It was decided that legal action should be initiated by the administrator who has agreed to take the case on contingency. Hopeful legal outcome....at best that the consorcio collects after the owner's death. This means the other residents will continue to bankroll collective unpaid expenses.

An Argie family member took a different approach. In 2009 he inherited an apt (45m) in the barrio of Monserrat. His father had been renting it to the same tenants (a couple w/ 1 small child) for 3 years with contract and a guarantor. The rent was paid, although some months with delays of up to 15-20 days. My cousin took over the collection task. After 3 months the tenant began falling behind for longer periods claiming employment for bricklayers had slowed down as well as domestic work for his wife. Before sending a legal notification, my cousin inquired about the status of the guarantor. That property had been sold 6 months after the signing of the contract renewal. Mute point!

So instead he gave the tenant 90-day notice to vacate. Claimed the apt was needed to be occupied by a family member. And that's when the negotiations started...."let the games begin". Outcome...all prior rental debts forgiven plus a $10K pesos bonus for moving out within 30 days, $7500K pesos if out within 60 days and $5K pesos if they waited out the 90-day period. Tenant was out in 30 days! My cousin sold the property soon after.

 

[Rich One]

The guarantee must be from a Buenos Aires City property, must be valid and with no liens. The guarantee is investigated by a Notary at the Tenants cost

 

[nikad]

The guarantee property is complete and absolute bull**t. Said property can be sold the next day you sign your contract. In reality what real estate agencies and seasoned landlords look for is both a tenant that has a stable job with a good salary receipt and a guarantor that has both the property and good income that can be garnished. Having the property garantia is just the " entry card " to become an eligible tenant.

 

[nikad]

Something that is very important to note s that you will find in the market properties that are being sold " rented until 2017 " etc. and usually they are advertised " for investors " be very careful when considering such properties, as you can end up with a tenant that stops paying and does not want to leave.

 

[nikad]

As I mentioned before, usually lawyers, real estate firms, etc are useless when you are stuck with a tenant that does not pay and does not leave. Years ago my parents bought a nice apartment that was rented until the end of the year. Tenant stopped paying and would not leave. We were living in the same building ( renting ) and were waiting to move in. So lawyers, etc, etc did not help solve the situation. Months went by and nada. One day my 80 year old Italian great grandmother showed up to his door ... I don't exactly know the words she used or what exactly is what she said: they left within 3 days.

 

[Ceviche]

One day my 80 year old Italian great grandmother showed up to his door ... I don't exactly know the words she used or what exactly is what she said: they left within 3 days.

There is something about old people. They may look very fragile and weak but I can assure you..they command lot of respect & authority. I have seen that all my life..a word of a old person like yr granny in a tough situation carries a lot of weight!