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. 

Labels:

Popular posts from this blog

#SahodItaasPresyoIbaba Economics' Understanding of How Gasoline Prices Work

International State College of the Philippines Today is Flor Contempacion Day , and rallies are expected. However, whether it's Flor's death anniversary or not, rallies are expected for the wrongest of reasons. I would like to address this photo from the International State College of the Philippines' Facebook page. The demands here are rather clunky and stupid. We have the following demands that would naturally clash with each other, such as: No to the oil deregulation law while demanding lower oil prices. This is simply ignoring the basic fundamentals of economics, namely the law of supply and demand . They say that oil companies are greedy for gain. These rallyists probably don't really understand the difference between revenues and profits . Let's understand the Oil Deregulation Law  The Oil Deregulation Law, or the Republic Act No. 8479 , passed on February 10, 1998, under the late Fidel Valdez Ramos. Here's how the liberalization works: CHAPTER II  LIBERAL...
Read more

Does the Grades-Over-Learning Approach Contribute to Students Hating Mathematics?

Schoolessons Some time ago, I wrote about why I used to hate school . The big problem has to be that the education system cares more about grades than learning . A good grade is indeed a sign of good character. A good grade is only good if it is achieved without cheating. However, for a grade to be really good--I believe that it must spring out from learning . However, the education system has been so focused on grades over learning that students end up cheating as a result (read here ). It affects every subject since a faulty system is a faulty school of thought. I'm going to really point out that I hated school because of the grades over learning approach. It's always all about grade shaming and even the best teachers end up indirectly or inadvertently participating in it. I still remember two of my best strictest teachers. One was as stern as the late Miriam Defensor Santiago. Another was the reason why I never dropped out.  This time, I'd like to focus again on mathemat...
Read more

"Will #SahodItaasPresyoIbaba Economics Lower Philippine Gas Prices?

Inquirer Gasoline prices have increased again, haven't they?  A few days ago, I wrote  why #SahodItaasPresyoIbaba's view of gas prices is questionable . Today, I feel like writing this after several complaints on Facebook. I would like to create a follow-up post. People are complaining too much without understanding the real reason why some countries have lower prices of gasoline. Real talk. We need to talk about economic policies,  and  of course, please do a study on supply-demand analysis  on supply chain management . Let's examine the complaints made by Bulatlat Bulatlat Here's a chart from Bulatlat that compares the increase in prices of gasoline between the Philippines, Thailand, and Malaysia. It's always problematic when people ignore simple economics. It's funny, but Bulatlat mentions this on their website: Note also how expensive our diesel and gasoline products are compared to those of our ASEAN neighbors. The estimated common price today of diesel in...
Read more

Is Jollibee "Invading" South Korea Now as It's About to Acquire 70% of Shabu All Day?

I must confess that I find this new rather hilarious . It's because the word shabu is often associated with drugs. All the while, shabu shabu is a Korean delicacy! Well, I'm going to say that Jollibee Foods Corporation has now become a multinational buyer . Jollibee acquired 70% of Compost Coffee back in 2024 . This year, Jollibee as a multinational corporation is now acquiring Shabu All Day for PHP 5.1 billion pesos. Is Jollibee checkmating South Korea or is the Philippines conquering South Korea not just by OFWs but als through Jollibee? The answer is still no. From GMA News , we can read this article by Jon Viktor D. Cabuenas: Under the deal, Shabu All Day will be consolidated into Jollibee Foods Corp.’s (JFC) financial statements immediately upon completion of the acquisition for a total consideration equivalent to KRW127 billion. Completion of the transaction is subject to closing and financing conditions. The acquisition is expected to lead to a 2% jump in revenues, incre...
Read more

Are We Teaching Math in School... Wrong?

Schoolessons I could remember hating math while growing up. I actually and frequently had a vicious cycle that went like this--(1) I hate math, (2) I don't study math because I hate it, (3) I'd rather play video games or watch TV than study and practice math because I hate it, (4) I fail math exam because I didn't study, (5) it's always I hate math because I believe I'll never get it. In fact, I even felt like I wanted to quit school altogether and get into a fight with my parents because of math. It was a vicious cycle hard to break from, especially during our K+10 days. I remember being enrolled in Kumon classes for the summer when I was approaching Grade 6 (graduating year), I almost didn't graduate because of mathematics, and I had to have tutorials. I always felt math sucked, I'll never get good at it, and I'll never get better. I just kept thinking how "I hate math!" was my mantra and hating people who were better in the subject than I am...
Read more