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42 sats \ 6 replies \ @OT 8 Jul \ on: Property Management built on Bitcoin (The Better Bitcoin Business Model) bitcoin
"Accept the rent in BTC equivalent and have the lease include the split/appreciation as a variable add-on that is dependent on the expenses of maintaining the unit"
Could you explain this a bit more? You mean if BTC goes up in its fiat value the tenant will get some back?
Absolutely - for me it is a matter of "when" not "if" the FIAT value goes up....Bitcoin is going to continue repricing itself against FIAT values for as long as FIAT values exist...
I am currently working with an attorney on lease language that will more clearly address some of this model for protection for both parties of this type of agreement - though I really hope to have an "app" developed that automates this process and handles all the legal language through its use for each and every transaction... Yes I see this incentive structure being useful for virtually all transactions....
Anyway - back to answering your specific question a little more clearly....
When the tenant sends me say (using more round numbers for ease of math) 0.02 bitcoin valued in FIAT terms at $1000.00 and 6 months later that value is now $2000.00 the resident is able to recognize a 50% share of the $1000.00 of increased value....(right now I just reduce their rent due by $500.00 but with the "app" I have in mind they would simply be refunded or returned 0.005 btc which would be equal to $500.00
Eventually I think given the "return" or "refund" would be the easiest as it is in bitcoin but right now due to it possibly being a taxable event - I am hesitant to do it.... though this could be done in a federation (Fedi) or something similar which would make the tax thing a lot more questionable as to how it would be calculated which well...if this app had a large enough "mint" attached to it could eliminate the tax concerns from a user standpoint but from a government perspective well....that is TBD....I think it is likely governments come around and begin seeing bitcoin use much more favorably and remove some of the current tax issues....but that is my optimistic view :)
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What part isn't a good idea....the lawyer and the lease language? If so - I agree :)
We may not institute the language and keep it verbal for now.... I just worry a bit about ending up in a tough spot without having it written down.
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The giving bitcoin back part. There's a good enough incentive paying a lower rent with bitcoin. The savings they earned are what they keep in bitcoin.
Usually we have a boom then a long drawdown in a typical cycle. If you have the boom then start giving back Bitcoin during a 2 year bear market its going to be trouble.
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Thats kind of the beauty of the incentive being dependent on the future "price appreciation" of the bitcoin paid....if the network is doing well then the residents benefits and it could be significcantly and if it isn't...then the share is less or nothing at all....this way they have skin in the game of helping to see the network succeed and my risk is ensuring I haven't overleveraged my business and that I can weather those downturns.
For me its a win-win all around and for the resident/customer its a win-win or at worst break even as without the incentive they are just paying their rent in FIAT and I am immediately buying bitcoin with it.... they have at least a chance of seeing a savings... In the last three months they have saved a total of $1,013.57....