The headlines are telling about the global economic crisis, caused by the COVID pandemic. The decline of dollar and oil, tense political situation, and exhausted state budget seem removed and far from our lives. The truth is, financial troubles are closer than one can imagine – a hundred thousand people became jobless, half of them cannot afford even the basic needs.
The significant aspect of all this is the rent issue – tenants need help paying rent because cannot pay the full price, while the landlords have no choice but to let them stay at houses during the quarantine. Both sides criticize the government for ignoring the matter. But what is the true solution and whether the state budget can handle a full reduction of rental payments?
Everything Known About Canceling Rent Movement
Accommodation issue has always been a painful topic. While the private property’s price is rising every year with no reasonable factors, a lot of young people turned to temporary accommodation.
The problem is, the demand for apartments and houses is higher than supply – it can be explained with immigrants, coming here every year, and the young population, looking for a separate place to live. That is why the lease price is unreasonably high. Even now, when thousands of people suffer from financial hardship, neither government nor landlords make no concessions.
In connection with that, activists require the rent cancelling during the period of pandemic and further support for those who lost the job. They say, instead of giving loans and postpone the payments, the government should ban the charges at all until the quarantine ends.
"Sunny Doyle, the tenant-activist from Montreal declares:
We mean cancel, we don’t mean push back. We mean no rent, no mortgage so that people won’t be accruing debt."
The main demands in all cities are further:
● Freeze the eviction of insolvent tenants
● Provide subsidy for lessors to cover the lack of rental payments
● Introduce the period of free rent for dwellers
● Postpone all present debts and lower the percentage
The conditions seem tempting for medium and lower classes. Without a job and savings, the delay will not be enough – it can even make things worse when the sum will rise to enormity. On the contrary, free from such massive items of expenditure, you may overcome the troubles much faster. But what will be the consequences of such a hole in the budget?
Why You Shouldn’t Count on Rent Cancel?
Exemption from the payment for you means shifting the liability on the state. Landlords are people just like their tenants refusing to pay, you leave them jobless as well as you. This way the matter of compensation is on the government. Accepting the cancellation, they would have to pay the full reparation for lessors, and the sum would be massive.
According to recent research, even before the crisis people spent nearly 30% of their monthly budget on the rent, while in the largest cities the number runs up to 50%.
Covering up all these incomes would be unreal for the state, especially in such a period. The alternative variant – a partial repayment, would cause the further price increase and the devastation for some of the lessors. With the deficit of proposals on the rental market, the reduction of businesses is unacceptably either for the small business sector and country’s economy as the whole.
Given all the considerations, rent canceling is a failure from all the perspectives. Demanding the support for themselves, defenders forget about economy mechanisms – getting the brief relief from payments today, you deprive the landlords of the source of income, and, as a consequence, cause irreparable damage to the business in general, which surely will reflect on the our lives in the nearest future. The lack of offers and excessive prices on the market are only a small part of the consequences.
Rent Loans Instead of Payment Reduce: What’s the Profit?
The reasonable replacement for lease reduction in various rent loans offered by the state and private companies. Nowadays, when almost everybody feels tense in their budgets, temporary support is a good opportunity to let things go better and take a small break. Decide whether it is a suitable decision for your case, analyzing the advantages:
● The Government Is Ready for Such a Step
Which is crucial for today’s issue. Individual and families’ support during the COVID pandemic is meant to save your solvency and ability to support the business. You can get a good personal loan, shorten the expenses on education and another issue, and demand other kinds of support depending on your status. Your capacity to pay now is in the interest of the state’s economy – that’s why you can count on help.
● It Is Profitable for Both Landlords and You
During the quarantine, a lot of tenants moved out. The turned back to families, split the price with their partners and friends, and chose other ways to economize.
Due to this, the demand is falling for the first time in many years, and lessor can’t help but panicking. They’ve started to lower the price and make discounts for loyal holders. It is a good time for you to find a profitable variant instead of clinging to the old one, even if it demands some expenses. What is more, choosing to pay now, you make lessors more confident and avoid the price increase in the future. You can even set up the fixed sum for some period
● Pay Now – Pay Less
Nothing to say, the postponement is a hard bargain, and paying now, even with the help of loans, is a better decision to stay stable. But it is not just that.
Losing the income now, the landlord will surely boost the cost in future years, when things settle down. Influencing the global situation is in your hands now – provide small businesses with a decent salary to save the present positions on the market. Stability is a key to prosperity, even in a hard time. In addition to this, get yourself better conditions, keeping reliable relations with your landlord now.
On a verge of global crisis, all sides try to keep their positions – business owners raise the prices, the government fight for stability and medium-class demands financial support and relief. That is why the idea of cancellation is growing in the society, promising exemption of outgoings. Nevertheless, such radical means will ruin the economy, which already suffers from present processes. The consequences will be destructive for everybody, including ordinary people.
Nowadays, a good alternative for payment reduction is temporary support – rent loans with a low rate of interest and short repaying terms. Accepting this method, you give yourself a sustainable fuel in the hard period and help the economy to overcome the situation.
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