Skip to main content

Being a Landowner Isn't as Easy as Some Social Media Whiners Think

Moving.com

I've seen some posts on Facebook where they actually glorify the mass murderer Mao Zedong. One of their excuses to love Mao was the death of landlords, never mind that Mao's plan for a "Great Leap Forward" came to a crash under his rule. They keep saying that landowners are evil, that it's one of the "easiest jobs in the world". What they don't realize is that being a landowner isn't an easy task. I would like to give out my thoughts (and I'm a landowner too) as to why being a landowner isn't as easy as these social media whiners think.

From Moving.Com, we can read of the eight landlord obligations that show why being a landowner is never as easy as these social media whiners think:
  1. Offer a fair housing environment
  2. To deliver the unit as scheduled to the prospective tenant
  3. Properly manage the security deposit
  4. Ensure one has a copy of the lease (and following it)
  5. Properly maintain the rental property (which requires a lot of money)
  6. Respecting the privacy rights of the tenants by not walking in unannounced
  7. Providing notice before raising the rent
  8. To be accessible to the tenant
As a small-time landowner, I can feel all these burdens. It can go with something like:
  1. I can't discriminate against a tenant just because of their ethnicity, religion, etc. but only reject them if I'm aware of their bad activities. I can receive any tenant, whether Filipino or foreigner. It matters not if the person is a Filipino or a foreigner, as long as they're good tenants.
  2. If the scheduled delivery is done then it must be done. The only reason for delays would be that if I got really sick, there was a disaster that caused it to happen (ex. storms, floods, pandemic). Otherwise, if I expect people to rent the land, I must deliver it on time.
  3. The security deposit isn't for my spending pleasure. It's rather there just in case the tenant may not be able to pay for up to two-three months. A tenant can only be kicked out if they're unable to pay and the security deposit is over. 
  4. I must make sure that I have a copy of the contract. The contract can give me a reason to kick out the tenant or the tenant to leave. If I also violate agreements, the tenant has every right to leave my place. 
  5. I just can't doze and do nothing all the time. If there are problems like leaking faucets, bad drainage, damage from a disaster, faulty wiring, and the like then I'm required to answer these problems. As the owner of the land and/or building, I'm obligated to make sure that the property is in good condition. Otherwise, the tenant has every right to leave. That's why rental money is important because if they don't pay, what will I use to pay for the repairs?
  6. If I don't respect the privacy right of the tenants, that too can be a very good ground for why they would want to get out of the space. For example, I can't use my power as the landowner to peep into their most private moments or commit acts of voyeurism, which in themselves, are criminal acts that can give the tenants the right to move out and the duty to call the police.
  7. Any good landowner should never just raise the rent without a good reason. I should notify the tenants months beforehand that it's time to raise the rent and provide the reasons why. For example, if there's inflation or the cost of repairs has increased, it would make sense to raise rent but I need to inform the tenants first.
  8. I need to be as accessible as possible. This is because tenants will have complaints such as damages that fall under the responsibility of the landowner. As mentioned in contracts, landowners are required to make the place livable. This means that the landowner should be available as much as possible (or have someone who can help manage things) to check out any possible tenant complaints.
These principles apply to all forms of real estate businesses. It may be a piece of land that farmers rent to raise their crops. It may be the shopping mall that contains a lot of commercial establishments renting. It may be the basic commercial building rented out to different types of tenants. It may be apartment spaces and condominiums. The landowner is required to make sure that these places are rentable and livable. 

The key to long-term profitable land ownership is all about fulfilling the eight obligations. For example, I rent land to farmers or any agricultural company. The farmers find out that there are certain problems that I must fix. For example, there's stinky drainage, or the barn needs repair after a storm. I need to answer the farmers' valid complaints if I expect the farmers to continue renting. The farmers keep their net profits after taxes while I get the rental fees, from which the gross profit is deducted from. The farmers are required to pay me a reasonable amount. If I charge too low or too high, it wouldn't be good. If I bully the farmers, word of mouth can destroy me causing nobody to want to rent the space. I must also honor the rental agreements. If the farmers wish to leave for valid reasons (ex. having purchased their own land or found a better place to rent), I must respect their decision and carry out the procedures for them to move out as scheduled.

I'm also required to follow environmental laws. I should kick out a tenant who does illegal dumping. If I do illegal dumping, my tenant has the right to leave and the duty to report me to the authorities. As a landowner, I should make sure that the space for rent is clean and livable. Who would want to rent or live in a place that's poorly maintained? If I don't comply with those laws then how cna I expect to make a good long-term profit out of being a landowner? 

I'd say that those whiners have no idea of how business isn't so easy. They feel like the workers have it all hard, that the working class is "oppressed", even if the capitalist treats them rather well. One must ask if Mao treated the farmers any better during the Great Leap Forward. Mao ended up torturing farmers, whom he claimed to protect when they failed to reach his goals. Any good capitalist or businessperson knows that ethical businesses are more profitable than short-term unethical business practices. 

Popular posts from this blog

Filipino First Policy Linked with Crab Mentality

Having sea crab yesterday or just eating crab, I always think of that old commercial in the 1990s. It was called, "Iwasan ang crab mentality." or "Avoid crab mentality." This makes me recall a scene when I was a child. I saw a pail full of mud crabs (called alimango in Filipino) and if one crab got out, the others pulled it down. The TV commercial showed how if the crabs got together, they could all escape their grizzly fate of becoming eaten for human consumption. Chefs are just lucky crabs pull each other down. However, it also shows that the crabs would rather all be cooked together than let that crab escape.  Unfortunately, crab mentality is one of the biggest problems in the Philippines. It's not all that unique among Filipinos. However, it doesn't Filipinos should ever take comfort in engaging in a crab mentality, just because other people do it . Here's an interesting excerpt from Inquirer   by Jerry Peres de Tagle PhD: Studies in human behavior ...

It's a Common, Broken New Year's Resolution Among Filipinos to Do Better with Their Finances and Economic Knowledge

Happy New Year, right? There's this statement in Cebuano that says, "Sa Disyembre nag lipay-lipay. Sa Enero, naglikay-likay." For non-Cebuano speakers, it means, "Enjoying all December. Fleeing in January." It's because of the bad habits that are common during the Christmas season. I wrote an entry talking about when a Merry Christmas leads to an Unhappy New Year . After Christmas vacation, it can be common to talk about New Year's Resolutions. Sadly, there are resolutions meant to be broken or resolutions on paper only. Several people finish high school, go to college, get a job, but never gain the necessary knowledge of economics and finances. Instead, they continue to live the same habits year after year. Even worse, the same foolish behavioral patterns get passed down f rom parent to child to grandchild. Still stuck with financial habits that put one in a financial dodo The New Year starts and it can get funny. I tend to hate December because of the ...

Rejoicing Over Filipino Businesses Getting 100% Ownership Abroad While Crying Over FDIs Getting Allowed to Own 100% Ownership

The Philippine senatorial elections are on, right? One of the many things candidates (regardless of party) need to hold is the need for economic reform. As  I continue discussing economic charter change, several objections are held. One of the objections is allowing 100% FDI--a subject often subjected to mockery. These mockeries can range from promoting colonial mentality, selling the Filipino to foreigners, borrowing money from abroad (which is definitely not investment, read here ), or even the ridiculous notion that FDI includes Filipino women dating foreigners (read here ). This time, I would like to address another hypocrisy. This time, it's all about Filipinos who rejoice that Filipino businesses are investing with 100% FDI ownership. All the while, this is crying foul when there's a law passed that will allow foreigners to own 100% FDI ownership , in the Philippines. This is a meme to expose the hypocrisy. Jollibee has 158 branches in Vietnam, which I assume happened bec...

The Recent Microsoft Global Outage Should be a Wake-Up Call to the Philippines' Need to Fix the 1987 Constitution's Economic Flaws

The Express Tribune The recent Microsoft Global Outage was caused by Crowdstrike. Since I'm no IT or CS expert--it's better if I let them talk in the news. From BBC News , here's a detail from Crowdstrike that reveals the root cause of the problem has been systemic with an update: This is still a little unclear. CrowdStrike is known for producing antivirus software, intended to prevent hackers from causing this very type of disruption. According to CrowdStrike boss George Kurtz, the issues are only impacting Windows PCs and no other operating systems, and were caused by a defect in a recent update . "The issue has been identified, isolated and a fix has been deployed," he said. "This is not a security incident or cyber-attack." What exactly was wrong with the update is yet to be revealed, but as a potential fix involves deleting a single file, it is possible that just one rogue file could be at the root of all the mayhem. Thankfully, those who created th...

Is Vietnam Getting More FDI Inflows than the Philippines, Because of Its Supposedly Better Fight Against Corruption?

Discussing international marketing or world economics with boomer Filipinos can be painful. Some people still believe in the Filipino First Policy. I cite Vietnam as an example of why economic charter change (called econ cha cha) should be done. Some people cite that Vietnam's increase in FDI is because of the fight against corruption. I don't deny Vietnam has a crackdown on corruption. I don't deny that fighting against corruption helps the economy. However, fighting corruption without the proper tools and not having economic development, is useless. Fighting corruption isn't a panacea or cure-all either.  Spanking is part of child discipline, not the whole of child discipline. People who only spank but never teach right and wrong, render spanking ineffective . Instead, look at Vietnam's economic policy vs. the Philippines' economic policy. Some people blame the following for the Philippines' lack of foreign investments, some things Vietnam also suffers fr...

Trying to Plan Out What to Do as a Bull Market Starts

I was laughing just thinking about ignorance about the bear and bull markets. Yes, we know about social media gossipers (seldom called a marites in Filipino) tend to spread gossip. I ran into several people panicking when the Philippine Stock Exchange Index (PSEi) was mostly red. Others would panic but Warren Edward Buffett recommends, "Be fearful when others are greedy. Be greedy when others are fearful." That's the best market timing. Some people do cost averaging because it's practically less risky in contrast to lump sum investing. Buffett recommends that non-technical people should periodically invest in a low-cost index fund over a period of ten years.  Now, the Philippine Star has an article by Wilson Sy, where the first paragraph talks about the Philippines' entry towards the bull market : Most stock markets have undergone a dramatic shift to start the year, transitioning from a bear market to a bull market. Peak inflation, a slower pace of interest rate h...

When the Education Cares TOO MUCH About Grades, Schools Produce Idiots Instead of Intellectuals

During the pandemic, I was left in limbo thinking about my poor performance under K+10. It was something to think about that a classmate of mine who was both a summa cum laude and an honor student, ended up posting on his wall, "Students cheat because the education system cares more about grades instead of learning." The class salutatorian of our batch even commented about the good old days. I always had that feeling of insecurity and envy towards people better than me. But as Warren Edward Buffet would say, "Don't hate successful people. Learn from them instead." One of them is currently a teacher and the other is in Canada. I thought about my insecurities especially when I used to believe I was descended from a fine scholar and my family was a family of scholars.  I remembered the time I was taking MBA and got conned. I was asked, "Is that what MBA taught you?" I got touchy and ended up admitting, eventually, that I was only taking MBA for the presti...

My Personal Opinion on the Recent Universal Robina Incident

I was doing some news readings and I found out about the death of a certain Stephen Corilla. The incident happened in the Universal Robina Corporation's factory in Mandaue a few days ago. It really chilled my bones to read these details which I'll share from Sunstar : POLICE are set to investigate a food and beverage plant in Barangay Tabok, Mandaue City after one of its workers was killed on duty while cleaning a pulverizer machine Thursday afternoon, June 2, 2022. Cpl. Glenn Bordalba of the Mandaue City Police Office Station 3 in Barangay Basak who is leading the investigation told SunStar Cebu Monday, June 6, that they will visit the Universal Robina Corp. (URC) Mandaue City plant in Tabok on Tuesday, June 7, to investigate the matter. Bordalba added that they have not started the investigation yet as they were not allowed entry to the site by the URC management after the incident was reported to them. An approval from the corporation’s consultant is needed for the police to...

My Experience with Tealive Cebu at the Ayala Central Bloc

I have tasted several foreign-owned tea shops. My first experience with tea shops was with Chatime (read here ). Now, I heard of this new coffee shop (or tea shop, take your pick) called Tealive. At first, I thought it was Taiwanese but when I Googled it--it was Malaysian. It made sense that the company uses only Halal-approved ingredients  since Malaysia has a huge Muslim population. The founder is Malaysian-Chinese businessman Bryan Loo of Loob Holdings. Loob here also means inside as the Tagalog language also derives from the Malay language. Tealive would later head to the Philippines. It would be like getting Filipinos closer to their Malaysian heritage after all.  The branches in Cebu include SM City, SM Seaside, and Ayala Central Bloc. The one I ate was at Ayala Central Bloc. Someone gave me a taste of their sandwich and their signature coffee. I was pretty much impressed that I decided to dine in there. I went to try their lychee tea and chees burger. For a note, their ...

Getting Stingy at the Cost of Fire Safety?

March is fire prevention month, right? If there are people who are too extravagant then I'd like to talk again about stingy people (read the article here ). I've tried growing up with the stingy vs. extravagant extremes. Some people become stingy even with the necessities. It's one thing to deny a child a children's party since it's a want . It's another thing to deny a child stuff they need all in the name of saving money . Even worse, some people may be more than stingy enough to ignore fire safety. A stingy person just wants to save. It's almost like the story of the Miser and His Gold or The Rich Miser . I really find these stories entertaining at the same time, irritating. The first story has the miser who hid his gold under the ground. Some people today are too distrustful of banks and investments. The second story has a rich man who even dresses in rags, denies his son's shoes, had his wife cook some cake only for him, and was so greedy he had it ...