The issue of rentals vs. ownership is an interesting one. One of the
problems posed by the issue is that it is back&white, no middle ground.
Condominiums and Tenancies-in-common/coops don't seem to have resolved
the problem here. I have two small suggestions -
1. Long Term Leases, ie. 50-100 yr. leases. These are fairly common in
England and some parts of continental Europe where baseline ownership
has just gone beyond the possibility of average citizens. This seems
to be happening now in the US. Long=term leasing, with the possibility
of sub-leasing etc, establishes an asset in terms of the lease and related
rights to usage. This is one way to increase the renter's interest in
the property, insuring their care for the property.
2. Reneter's Equity. (That was Renter's Equity). This takes place in
some communities, ie. SOHO, South of Market, and Venice Beach. Mostly,
it is an "understood" arrangement between one renter and the next,
regarding what is usually called "key money". The practice has certainly
rehabilitated/remodelled many wharehouse lofts into living units.
Such a system , if institutionalized, can certainly improve the
maintenance and rehabilitation of the "interiors" of the units,
Since the renter's retain equity in the applieances, carpets, paint, etc.
of the interior, they have a vested interest in it.
This is a very non-trivial problem.
I think the first thing that you must define is who is your client.
That is who's interests are you serving. Most of the rest will follow
from that decision.
- Ray
problems posed by the issue is that it is back&white, no middle ground.
Condominiums and Tenancies-in-common/coops don't seem to have resolved
the problem here. I have two small suggestions -
1. Long Term Leases, ie. 50-100 yr. leases. These are fairly common in
England and some parts of continental Europe where baseline ownership
has just gone beyond the possibility of average citizens. This seems
to be happening now in the US. Long=term leasing, with the possibility
of sub-leasing etc, establishes an asset in terms of the lease and related
rights to usage. This is one way to increase the renter's interest in
the property, insuring their care for the property.
2. Reneter's Equity. (That was Renter's Equity). This takes place in
some communities, ie. SOHO, South of Market, and Venice Beach. Mostly,
it is an "understood" arrangement between one renter and the next,
regarding what is usually called "key money". The practice has certainly
rehabilitated/remodelled many wharehouse lofts into living units.
Such a system , if institutionalized, can certainly improve the
maintenance and rehabilitation of the "interiors" of the units,
Since the renter's retain equity in the applieances, carpets, paint, etc.
of the interior, they have a vested interest in it.
This is a very non-trivial problem.
I think the first thing that you must define is who is your client.
That is who's interests are you serving. Most of the rest will follow
from that decision.
- Ray