Tuesday, January 12, 2010

To be a Landlord or a Tenant

I find it strange that the United States laws protect the financially irresponsible. Look at the housing crisis and all the bailouts that the government is providing. Granted I understand that if they did not do this, the economy would go further into a tailspin but it seems that the financially responsible people get the short end of the stick. While we did not purchase the 2 bedroom apartment because we felt we could not afford it, others purchased homes that were beyond their financial means. Due to the crisis, the government has delayed foreclosures, etc.

I digress though and wanted to write about how the tenants in the United States seem to be able to get away with not paying rent. I have heard many of my friends who have had tenants who refuse to pay the rent for a couple of months. However, the law does not allow them to just get evicted. Instead, it requires that the landlord and the tenant go to court in order to get a date to evict them. Usually, this seems to be the customary practice and even so, the courts usually allow the tenants another 3-5 months to find a place, forcing the landlord to eat the years worth in rent.

China does the opposite in which the landlords get the preferential treatment. In fact, it is customary for them to receive 3 months of rent upfront plus the security deposit. In the event that the tenant is unable to pay, it is just a simple action of calling the police to evict them.

Being a landlord in the U.S., I would have to perform my due diligence on the tenant before renting it out. I am sure most landlords do this but unfortunately there is always the possibility of a tenant not paying and not much protection for the landlord.

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