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What is the best solution for newly unemployed renters and landlords during the Coronavirus pandemic? Can a compromise be made without rent strikes?

The best – and only – solution is for renters to get off their asses and go back to work or move out. There are tons of jobs out there, and I am not going to house you for free just because you think you’re too precious to work at McDonald’s!A rent strike would be the dumbest fucking thing at this point, as landlords would be delighted to kick everyone out, because renters have basically been on a rent strike since March, so they have no leverage left. Call me crazy, but if no one is going to pay me to live in my properties, I’d rather not pay for their utilities, insurance, and repairs. Without tenants, the buildings could be sold or converted, and even if we have to accept a lower offer than we’d like, getting out with no profit and no debt would still be a positive result if it means never having to deal with a renter who thinks they’re entitled to free housing from us again! Besides, there are still people in this world who are getting up and going to work, who pay their bills, and we’ll happily give the rent strikers’ homes to them.I can’t help but shake my head in disbelief whenever I hear anyone talk about their dreams for a rent strike, because rent striking is something that you do when your landlord is refusing to honor their obligations, and when you have run out of options. Practically speaking, you’d really just be refusing to abide by the terms of the lease by not paying, which would normally just get you kicked out. What makes it a strike is that you present a list of reasonable demands in return for which you’ll pay your rent and your debts, and what makes it a useful strike is that you’re doing it collectively. Under normal circumstances it would be greatly inconvenient to a landlord if she had to evict all 50 households in a complex, so if all refused to pay rent until the elevator and hot water was fixed and the rent reduced by $50 for each month those things weren’t working, she might find it easier to concede to their demands.What people are talking about now isn’t actually a rent strike, because they aren’t withholding rents to obtain something; they just claim they can’t pay. They are saying “We haven’t paid for the last six months because we don’t have jobs, so unless you cancel our debts and stop trying to collect rent, we won’t pay you the rent we weren’t going to pay you anyway”. You see the problem, right? Not only are they asking for something we cannot provide – none of us can afford to go without rent much longer – but they aren’t offering any incentive to give in. Perhaps most importantly, they have chosen to make demands at a time when landlords have already been screwed over again and again, for the better part of a year, so we are not in any mood to compromise with the renters who have been stealing housing from us.Readers have objected when I’ve used that word in this context – “stealing” – but it’s the only way to describe what they’re doing. The moratoria were meant as a last resort to protect those who absolutely couldn’t pay rent or work something out with their landlords, but instead they moved rent all the way to the bottom of their list of priorities. Every landlord I know have now had the experience of walking into a home rented by a tenant claiming poverty, and seeing new TVs, computers, and furniture. I was literally handed a CDC declaration (a statement swearing under penalty of perjury that the tenant has done everything to find a way to pay rent or somewhere else to live) in a brand new car that still had the sticker on it, and I found out that someone else was attempting to get a mortgage, but I spoiled that for them when I hurried up and reported their refusal to pay. If you’re able to put a down payments on a house, you can pay your rent. You might not be able to do both, but you better pay me first – especially when I’ve got legal grounds to evict you immediately!I am fortunate enough to have the resources to fight back against the housing-thieves, but not all landlords do. I have more than one lawyer challenging everyone seeking eviction protections, an investigator who gathers evidence to prove that they lied on their affidavits, and enough cameras and thorough documentation to have found grounds to evict almost everyone in spite of the moratorium. What these investigations have taught me is that all the tenants who claimed they couldn’t pay lied, with the exception of two. This is of course a relatively small sample, because I’ve only dealt with the tenants of my own units and another 50 that my agency either manages on contract or have assisted with on a case by case basis, but that’s still more than 60 claims of hardship with only two that were entirely truthful.The two who didn’t lie are my own tenants. One is a single parent with a severely ill child at home, so he won’t risk working outside of the home right now for fear of COVID exposure. The other is still recovering after nearly dying from the virus. Both get some government assistance and have applied for every type of relief available, but these are high end homes and it doesn’t cover half the rent. The single father showed me his bank statements and budget, and I was satisfied with the percentage of benefits he handed over to me, but I still required him to sign a payment plan. The tenant who had COVID tried to pay me less than 20 percent of the normal rent, once they were already two months behind, so as we were between moratoria I demanded to see their financials and determined that they would need to pay 90 percent of their income benefits and their full stimulus check, as they had food stamps as well (when I determine what someone who owes me money must pay, I only factor in what they absolutely need to survive, because I don’t really care if they can’t pay their car insurance or Netflix). Everyone else either straight up lied, exaggerated their lost income, had ample savings, or refused to take the jobs I offered them at my gas stations.Did you think it was harsh when I opened this answer by stating that tenants need to get off their asses and go to work? Did you think that I believe all unemployed are just lazy pieces of shit? I hope not, because I don’t. There aren’t always enough jobs for everyone, so someone will always be left standing without a chair when the music stops. I favor unemployment benefits at a livable level, and I get that you might want to spend some time looking for a job in your field before you give up and go to work at a burger joint, but you don’t do that on someone else’s dime. If your unemployment allows you to hold out for something better, by all means do it, because that’s what we pay all those taxes towards. The problem here is that you haven’t been paying me a percentage on top of your rent to cover you in case of job loss, so you’re either going to have to move out or pay me. If you don’t want to move, or if you cannot, then you sure as shit don’t get to sit around all day as you browse Indeed and skip past a thousand available jobs that aren’t up to your standards.When a tenant doesn’t pay rent, I still have to pay all the cost associated with housing them, so I’m not just foregoing $1000 in profits. Since my properties are paid for, I lose approximately $600 in profits, while I also have to dig out $400 from my own money somewhere, to pay to house them, which is why I won’t give an inch when it comes to the thieves. Most landlords pay out more than $900 on every $1000, so it’s completely insane to think that you get to sit around until your dream job comes around, while they pay for your housing out of their savings. As a business owner I have felt the effects of the nearly unlimited unemployment benefits, when no one wanted to work a job that paid 180 percent more than local competitors, so I have been offering anyone who claimed they couldn’t pay rent due to job loss an application for employment at either my larger truck stop or smaller gas station across the road. None applied.I need cashiers, cleaners, handymen, cooks, and stickers for all shifts, so there’s no excuse not to apply. One dude looked at me like I was the crazy one, when I offered him a job right after he finished a long sob story about how he couldn’t afford food, let alone rent, because he’d been laid off and no one was hiring. He made a face and asked if I had a need for senior account managers, and I said no, and explained that I needed someone to clean the truck stop at night, but this person might have an opportunity to train as a cashier after the first month. If you couldn’t guess, that resulted in him making an even more ridiculous face, one expressing contempt and disgust, as he asked if I was crazy. His response was typical, and these were people who claimed they were broke. All were offered full time employment, at $13/hour in a state where the minimum is $7.25, with possible overtime, and none wanted it. They all had dumb excuses like how they didn’t feel right accepting a job knowing they’d leave as soon as they got a better offer, they were afraid of being around so many people, or that they thought it would look bad on their resume. The first excuse is idiotic as the owner of the business literally offered them the job knowing they’d be leaving as soon as they found something better, the third is lame because any employer with half a brain will prefer someone who worked throughout this disaster to one who sat at home and collected unemployment, and the second excuse is just shameful. These renters aren’t any more important than my employees who have been coming into work almost every day (because like most similar businesses, we’ve been desperately short-staffed in the midst of this record high unemployment) since the start of the pandemic, and they aren’t any better than me, someone who’s willingly worked overtime in the hospital treating COVID patients without adequate PPE, when I could have stayed at home.The only reason renters have been allowed to stay in their homes without paying is that millions of new homeless right now could exacerbate this public health emergency, so it’s got nothing to do with what you deserve or anyone taking pity on you. Under normal circumstances people who lose their job through no fault of their own are evicted alongside the people who wasted their rent money on beer. Legally it made no damn difference why you didn’t pay rent, and it still doesn’t. A lease is a legally binding contract, and the terms remain valid even when it’s impossible for you to meet them. It’s not contingent upon your ability to pay or your health, and that hasn’t changed. The only difference is that right now, part of the penalty for violating this contract has been postponed for another 2 1/2 months. I can still report your failure to pay to credit bureaus, your behavior is still reflected in your credit score (in the past few landlords reported to credit bureaus, but now it’s growing increasingly common as we have to use all the weapons at our disposal), we can still charge late fees, and we can still sue you for the money you owe. And once the New Year’s celebrations end, we can start eviction proceedings immediately, without giving you a chance to pay.The best solution for landlords right now is to report all tenants who haven’t been paying their rent in full (unless they had their consent) to credit bureaus, tack on the maximum in late fees and penalties, file civil suits, and evict ASAP once the moratorium is lifted. Landlords should then either offload their properties for anything they can get, convert them to a different use, or install tenants who can prove that they have behaved honorably throughout this crisis. Rents should be raised whenever demand allows, since the only upside to so many landlords being forced out of business is the increased demand for the remaining properties, and deposits should equal several months rent. It’s not great, but it’s better than being blackmailed by tenants, and we can still recover a lot of what we’re owed in the civil courts. When she called to find out why she’d just been served, one of my non-paying deadbeat tenants responded by gleefully announcing that she didn’t own a home and that she had no real assets, so me suing her made no difference. I genuinely wished I could have seen her face when she was told that in that caseI’d be getting a good chunk of her paychecks for the next decade or so, but the desperate glint in her eyes when she rolled up to the office with a money order for $967 (I’m assuming all she had left) made you for it.I wasn’t going to evict anyone this fall, because with no moratorium in place (and no rent strike!), all my tenants prioritized rent as they knew they’d lose their homes if they did not. That meant payment in full from all except for the two households that absolutely could not make it work, but with everyone else paying in full I could easily afford to keep them on a payment plan as long as they made every possible effort to get caught up. Then the CDC moratorium was announced, and renters decided that paying rent was now optional. I was one of the lucky few who had enough cash within the company, and enough people were paying to keep me from losing money, but only just barely, so I decided to get out of this business. I immediately served unconditional notices to vacate to everyone who was on a monthly basis, had made more than two late payments, or who currently owed rent, and I rushed to evict those that didn’t comply. Since then I’ve been evicting everyone one at a time, as soon as I get legal grounds or successfully challenge their CDC declarations, though most have asked me to tear up those statements once they realized that I’d challenge them and that their lies were actual crimes.Renters need homes to rent, and there won’t be many of those without landlords, so the best thing tenants can do for themselves, collectively, is to hurry up and pay their rent, before too many of us get fed up enough to abandon the business. As individuals, their strategy should be the same, because I am ready to throw every weapon in my arsenal at anyone who tries a rent strike – and I promise you that I am not the only one who feels this way! Vengeance is only a small part of my motivation, because it really is tremendously important that we as landlords and business owners warn each other about scammers and thieves, and the best way to do that is to make their behavior part of their public record. In the past we might not have bothered to sue and report everyone, but we sure as shit will now! If you choose to go on a “rent strike”, your credit will be in the toilet, you’ll be wasting time in court, your wages will be garnished, any assets you have will belong to your landlord, and you’ll be evicted right as homes are literally become impossible to find.A rent strike in this situation would be nothing more than blackmail, and landlords aren’t going to stand for that even if we could. We have a binding agreement in place, and for 8 months landlords have been involuntarily compromising as we couldn’t enforce that contract. If this were truly going to be a mutual compromise, it would now be the renters turn to give us something more than what they’re already required to do. As I don’t see that happening, a compromise is out of the question.

How are real estate property rights handled in developing countries?

REGARDING INDIA:Pro-tenant laws in India often inhibit rental market​Even with the application of the Lease and License Agreement system, it is still difficult for a landlord to protect his property from unwanted overstaying tenants. Even if contracts are enforceable in courts, the actual enforcement takes years or decades to accomplish.Rents: Can landlord and tenant freely agree rents in India?There are two types of tenancy agreements in India, Lease Agreements which are covered by rent control laws and Lease and License Agreement which are not.A Lease (or Rental) Agreement is covered by restrictive rent control laws. The amount of rent that can be charged is based on a formula devised by the local executive, legislative or judicial government, as the case maybe. For Delhi, the maximum annual rent is 10% of the cost of construction and the market price of the land, but the cost of construction and the price of land are both based on historical values and not the current market valuation. So the older your property, the smaller the rent you can charge. Rents can only be increased by a fraction of the actual cost the landlord has incurred in improving the property.The Lease Agreement transfers the right of ownership to the tenant for an indefinite period of time, which can be problematic because it encourages the tenant to claim the right to permanent occupation. In numerous cases, tenants have refused to relocate. When brought to court, these cases can take 10 to 20 years to resolve.Most landlords prefer a Lease and License Agreement. This agreement only grants the tenant a license to occupy the property for a period of 11 months, with an option for periodic renewal. Because the rent control laws (which are largely in favor of tenants) only apply for lease agreements of at least 12 months, establishing an 11-month agreement serves as a pre-emptive measure.To avoid complications, since landlord prefer these agreements, we will only discuss Leave and License agreements for the rest of the article.Deposits​Prior to occupancy, tenants usually pay a security deposit of three months’ rent. This is usually refundable at the end of the contract, if no other liabilities have been left unsettled. Deposits are expected to be returned within a month after the end of the tenancy, or as stated in the contract. Until the deposit is returned, contracts commonly stipulate that interest must be charged on the deposit, computed at a daily rate. Advance payments for six months up and full payment for 11 months are popular.What rights do landlords and tenants have in India, especially as to duration of contract, and eviction?Since Lease and License Agreements are designed to escape restrictive regulations, all terms are governed by agreement between landlord and tenant. Aside from the most basic condition that the tenancy is only for 11 months, everything must be stated in the contract. (For a copy of a sample l Residential Lease & License Agreement, click here.)Typical contracts include a provision that, if either party wishes to prematurely terminate the contract, three month’s notice must be given.The typical agreement also prohibits subleasing. To deter tenants from overstaying, experts recommend including a clause quadrupling the rent if the tenant does not leave when the contract ends.EVICTION FOR NON-PAYMENT OF RENTDuration until completion of service of process142Duration of trial24Duration of enforcement46Total Days to Evict Tenant212Courts: The Lex Mundi ProjectHow effective is the Indian legal system?Court proceedings of any type should be avoided at all times. Well-defined contracts will greatly help landlords to convince tenants that they (the landlords) are likely to win the case in court. As stated above, eviction cases can last up to 10 or even 20 years.LegislationLocal laws cover landlord and tenant agreements. Many local rent control laws such as the Maharashtra Rent Act 1999, Delhi Rent Act 1995, Tamil Nadu Buildings (Lease and Rent Control) Act 1960, strictly regulate rental agreements that are 12 months or longer in favor of tenants. If the monthly rent payable on a property exceeds Rs3,500 (US$76), the agreement is subject to the Transfer of Property Act (TPA), which assigns the landlord responsibilities including i) disclosure of information regarding material defects in the property and ii) uninterruptedoccupation of the property for the agreed period (subject to periodic visits by the landlord for inspection). In this case there are more grounds for evicting tenants, but the situation is still disadvantageous to the landlord.​Brief History: Recent changes in Indian landlord and tenant lawThe laws on landlord and tenants in India are archaic. The national government is encouraging local units to relax these laws to encourage investments in housing and construction. How fast will India will move to abolish its old system is very much questionable. The Maharashtra Rent Act 1999, for example, is slightly more pro landlord than the Bombay Rent Control Act 1947, but it does not still sufficiently protect landlords’ rights.

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