4 ms·
In Italy landlords have to pay taxes for the rents even if the tenant doesn't pay (the government defaults to not trusting citizens to declare income), thus cre
by ithkuil 6y ago
In Italy landlords have to pay taxes for the rents even if the tenant doesn't pay (the government defaults to not trusting citizens to declare income), thus creating a pressure to formally evict tenants. (This problem was fixed a few years ago for residential rents but it's still a problem for commercial rents). How does this work in the US? How does it compare, as a landlord, to face months of likely vacant property versus months of months continued use but with missed payments?
- Pfhreak 6y agoIn the US, landlords would still pay property tax, but not income taxes if they didn't collect any income. Things might get complicated if you rent significantly below market rates though I'm not sure about that. The US, unfortunately, has an ethos that failure to pay rent is almost always an individuals personal failure. This makes it culturally acceptable (generally) to evict someone who can't make rent because it is a moral failing of the renter (and not, say, the outcome of systemic failures beyond the renters control.) So while landlords probably benefit from getting a portion of their normal rent, they are under significant cultural pressure to evict people who can't pay.
- cman1444 6y agoI would hesitate to say that there is "cultural" pressure to evict a tenant. Landlords aren't evicting people because their friends tell them to. They evict people because they think they will have better luck trying to find a new tenant who will hopefully be able to pay their rent.