Real Estate Sales advice on rental agreement

[CreyCruz]

Hi, I need some advice about my rental agreement. It states that my rent is $500 US a month. It also states that pay the "dolar informal' rate (5.93) which makes my next rental payment for 3 months $8895. I would rather pay by bank transfer so I can be sure to pay no more than $500 per month, or $1500 for 3 months. But, as a foreigner, I can't take out US bills, and they say they can't do bank transfer (not sure if that's true or not since in one email they said this was possible, then said it wasn't a few emails later), which means I have to withdraw money from the ATM to pay the $8895 which, according to the official rate, and my bank statement, is actually closer to $2000 US!!!!!

Does anyone have any advice for me? I hear it's illegal to put the price in US$ in the contract. Is there anything I can do about that? Also, why do I have to pay the 'dolar informal' rate rather than the official rate? I mean, my agreement is to pay $500 a month. But by forcing me to go with the informal rate they are also forcing me to actually pay $650 a month!! HELP!!!

 

[DanielEight]

Did you sign the contract yet?

 

[CreyCruz]

I signed one 3 months ago, with these terms, and they want me to sign another one tomorrow, same terms...

 

[TechNow]

Nothing you can do if you want to keep renting that apartment. You need to take a hard line when negotiating. They are Argentines, they are dealing with foreigners, so they should know better than you how to get ahold of dollars in Argentina.

I would tell them that you agree on the price in USD, but it is their responsibility to find a cueva where you can transfer dollars from the USA and make them accept the bank transfer. And if they say no, be prepared to move out.

 

[CreyCruz]

Is the contract good for 2 years even if I don't have a local guarantee person?

 

[TechNow]

Is the contract good for 2 years even if I don't have a local guarantee person?

If you want to sign a 2 year contract, you'll need to get a local guarantee, or else do something like Dirtboy says and negotiate it.

I would recommend against starting a war with the owner of the apartment, sending cartas documento, etc. Just walk away if you don't agree on the terms. There are thousands of apartments out there. No need to get nasty.

 

[earlyretirement]

Nothing you can do if you want to keep renting that apartment. You need to take a hard line when negotiating. They are Argentines, they are dealing with foreigners, so they should know better than you how to get ahold of dollars in Argentina.

I would tell them that you agree on the price in USD, but it is their responsibility to find a cueva where you can transfer dollars from the USA and make them accept the bank transfer. And if they say no, be prepared to move out.

I totally agree with this post. If you want to stay in the apartment then you need to either pony up the dollars or do it at the rate that it takes to really buy the dollars.

If you can wire them the funds from your bank outside of Argentina, there are many established "blue" money transfer firms that will do the transaction as they are desperate to get funds outside of Argentina as they simply have too much cash in their possession now as the market is flooded with locals sending their funds outside of Argentina.

The only problem I see is that most of these firms don't want to deal with too small of amounts and you have to have established connections with them. But honestly most locals can easily find places to accommodate this.

The guy that suggested you send a carta documento is totally wrong. That's horrible advice. Anyone can send a Carta documento. It doesn't mean anything. Just a notice and most people ignore them. The court system TOTALLY does not work there and you will spend more time and money in legal bills. Don't waste your time. Also, if you aren't in the "system" I certainly wouldn't want to become part of the system, getting caught up in Carta documentos, etc. It's best to stay out of the radar and system of the Argentina government.

Either agree to their terms or find another apartment. It's that simple.

I do think your solution to wire US dollars is good but honestly most locals probably won't deal with it.

There is no reason to start some war with an owner. Owners have a LOT of expenses owning a property and they had to pay cash for it. No reason for them not to get what they are asking, especially if you rented the apartment to begin with in dollars. It's not the owners problem that the government is totally crazy.

No way as an owner I'd agree to accept pesos at the official rate if I agreed on a US dollar rent to begin with. Most wise owners simply aren't doing rentals in pesos. Try to always look at things objectively from both sides as if you were the owner as well.

There are thousands of apartments so find another if you can't agree to this owners terms and conditions.

 

[TechNow]

I totally agree with this post. If you want to stay in the apartment then you need to either pony up the dollars or do it at the rate that it takes to really buy the dollars.

If you can wire them the funds from your bank outside of Argentina, there are many established "blue" money transfer firms that will do the transaction as they are desperate to get funds outside of Argentina as they simply have too much cash in their possession now as the market is flooded with locals sending their funds outside of Argentina.

The only problem I see is that most of these firms don't want to deal with too small of amounts and you have to have established connections with them. But honestly most locals can easily find places to accommodate this.

The guy that suggested you send a carta documento is totally wrong. That's horrible advice. Anyone can send a Carta documento. It doesn't mean anything. Just a notice and most people ignore them. The court system TOTALLY does not work there and you will spend more time and money in legal bills. Don't waste your time. Also, if you aren't in the "system" I certainly wouldn't want to become part of the system, getting caught up in Carta documentos, etc. It's best to stay out of the radar and system of the Argentina government.

Either agree to their terms or find another apartment. It's that simple.

I do think your solution to wire US dollars is good but honestly most locals probably won't deal with it.

There is no reason to start some war with an owner. Owners have a LOT of expenses owning a property and they had to pay cash for it. No reason for them not to get what they are asking, especially if you rented the apartment to begin with in dollars. It's not the owners problem that the government is totally crazy.

No way as an owner I'd agree to accept pesos at the official rate if I agreed on a US dollar rent to begin with. Most wise owners simply aren't doing rentals in pesos. Try to always look at things objectively from both sides as if you were the owner as well.

There are thousands of apartments so find another if you can't agree to this owners terms and conditions.

You have to think that this guy already knows you, he knows you pay on time, you are willing to pay in dollars, and you are willing to pay what he asks.

So, you are not asking that much for him to do the legwork and find a cueva that will accept your bank transfer. Like this poster said, there are tons and they are all anxious to get dollars from abroad because it lets them accomodate people here who want to send cash abroad. And yes, the problem is that you are doing this for just $1500 USD.

If you were willing to move a few thousand it would be easier to find someone to help you.