Monthly Archives: June 2009

Poverty, Commerce, and Exploitation

Three years ago, Newsweek writer Daniel McGinn bought an “investment property” in Pocatello Idaho based on some emailed photos and an assessor’s report. He knew he was buying a downscale duplex, but only after after visiting the place he’d bought did he realize he’d unwittingly become a slumlord. He tells the story in an insightful article in the latest Newsweek.

For most of my life, I’ve thought of landlords as rich people. I assume most people do. After all, if you had as much money as your landlord, you’d own your own place instead of renting.

My mental image of landlords started to change as I dealt with landlord/tenant issues as part of my Lawyers in the Library (LITL) volunteering. I’ve seen just as many landlords as tenants there, and none of them fit my preconceived idea. Like tenants, they vary. At LITL, I’m seeing the poorer end. I’ve never asked them how much money they make on their properties though, so it was eye-opening to see how thin the margins are on McGinn’s:

Thanks to an energetic local property manager, my two apartments have never been vacant. Many months the combined rent of $690 covers the $503 mortgage payment and other expenses. Still, I’m frequently hit with repair bills (a broken stove, a leaking underground water line) that send me into the red. And even after the tax write-offs, my costs have exceeded the rental income by more than $2,500 since I purchased it.

After touring my duplex with my property manager, Ryan Olsen, we promise the tenants we’ll fix the heater and hire an exterminator. Bill also complains about the worn carpeting and linoleum, and asks me to replace it. I’m noncommittal. Afterward, I walk Olsen to his truck. He tells me that five of the 60 local apartments he’s managing are now vacant, and he’s seeing more signs of economic distress. “I’ve gone from chasing five or six tenants a month [for rent money] to chasing 15,” he says—including Will, whom he’s been pressuring to find work and catch up on the rent. If Will and Rose move out—they’ve talked of moving to a trailer home with a separate bedroom for their son—Olsen estimates I’ll need to spend $800 to clean, repaint and recarpet their unit before he could rerent it, draining more profits. What about Bill’s request for new carpeting and linoleum? Skip it, Olsen says. The tenants aren’t going to move if I don’t replace it, and newer carpet won’t let us increase their rent. It would be a bad investment.

So in a perfect month, McGinn makes $183. But lots of months aren’t perfect because tenants come and go, or don’t pay, or maintenance costs eat up the $183. Even though he’s renting out a slum, he’s lost $2500 while doing it.

Before the end of the article, the writer eventually does the right thing:

The next morning at 6:30 I’m at Lowe’s, haggling over the price of carpet remnants. By 7 a.m. I’m securing 12-foot rolls of carpet and linoleum to the top of a rented Hyundai. At 10 a.m. I knock on the door of my property. Dogs bark, and after a few minutes Bill comes to the door, rubbing his eyes. “Didn’t I tell you I’d be here?” I ask. Yes, he says, but for years land–lords had making promises they didn’t keep, so he didn’t expect me to show up. After he dresses, we haul the flooring onto the porch.

Financially speaking, this $213 purchase is pure stupidity: it doesn’t add to the property value and will hurt this month’s cash flow. But it seems a small price to pay to improve the life of a rock-solid, longtime tenant—and, of course, to assuage my guilt over owning such a run-down property. My discomfort grows stronger as I spend the morning with Bill, Sarah, Will and Rose. It’s easier being a landlord from 2,450 miles away, delegating to my property manager all the tough decisions about rent increases, late-payment penalties and potential evictions, and relating to the tenants only as faceless names on leases.

What’s striking to me though, is that the “right thing” means that he goes even deeper into the red. And it’s still only a marginal improvement to the property.

There’s no easy answer here. His tenants live in really crappy apartments. He could raise the rent to support the cost of improving the property, but then they couldn’t afford to live there. Typical governmental responses don’t help much either. Tenant protection laws can force a landlord to meet some minimum livability standards, but they can’t find a landlord willing to run losses forever.

The poor can only afford cheap housing. But cheap things are cheaply made, and those who sell them often face guilt (as in McGinn’s case) or liability for failing to meet minimum statutory standards. Still, the poor buyers must feel that the deal is the best one available to them, and that what they’re getting is worth what they’re paying, or they’d move elsewhere. The million dollar question is this: when should the government forbid poor people from entering into deals like this, for the person’s own good? If the buyer is poor enough, are all profitable deals exploitative?

Python Can Write Your Linguistics Paper For You

  1. Install the ReportLab pdf creation toolkit from http://www.reportlab.org/downloads.html.
  2. Do this a few times:
    >>> from reportlab.lib import randomtext
    >>> randomtext.chomsky(times=5)
    

    “Presumably, the speaker-hearer’s linguistic intuition can be defined in such a way as to impose problems of phonemic and morphological analysis. In the discussion of resumptive pronouns following (81), a subset of English sentences interesting on quite independent grounds delimits the levels of acceptability from fairly high (e.g. (99a)) to virtual gibberish (e.g. (98d)). From C1, it follows that relational information suffices to account for the strong generative capacity of the theory. On the other hand, this selectionally introduced contextual feature delimits the traditional practice of grammarians. To provide a constituent structure for T(Z,K), the systematic use of complex symbols does not affect the structure of a descriptive fact.”

Almost as nonsensical as Lorem Ipsum.

Tagged

You Are Covered in Bacteria

The LA Times reports on studies that are quantifying and categorizing all the bacteria that live on people. All the time. They’re mostly not bad, as it turns out, and you’re better off with them than without them.

Here’s an LA Times graphic showing where the bacteria like to congregate:

bacteriamap

The hygiene hypothesis and Seth Roberts’ pro-bacteria drumbeat are looking more prescient all the time.

Lard Rules

At least, according to Slate it does. But then, they’re not so big on the kind you buy in tubs from Food4Less, which is what we use when we make tamales. Still, it’s nice to see one of my gastronomical heresies get a little love from the media.

Tagged ,

Seth Roberts on Strip Clubs and Research Universities

This post from scientist Seth Roberts deserves to go down as one of the best metaphors ever used to describe higher education.