By Ron Ulmer
Recently, one of my tenants informed me that he had to move out in a few days. Why did he need to move out suddenly? Soon after moving in 16 months ago, he lost his job. He asked me if it was OK for his parents to pay the rent. I said yes as long as it is a bridge until you become employed again as employment is a requirement of tenancy.
Although I provided him job leads and reminded him he had to have a job to rent from me, he made no effort to find a job because his Mom and Dad alternated paying his rent each month and I never gave him a 30 day notice to vacate unless he became employed. When his Mom found she needed to have surgery, she could no longer afford to pay his rent every other month. Therefore he had to move back home because he lost his rent support. When he turned in the keys, I asked him, “Would you have found a job if I had given you a thirty day notice? “ He responded, “Most likely yes”.
This incident reminded me of my own behavior when I was suddenly terminated in a corporate downsizing. I immediately applied for unemployment compensation for which I was eligible for 6 months. While on unemployment compensation, I was diligently seeking employment as well creating a business to become self-employed. While I had not found a job, I was ready to move my business from soft start to full launch. However Congress extended unemployment compensation another 3 months. As a result, I responded rationally by delaying the full launch of my business, choosing to remain dependent on the government for 2 additional months.
Lessons learned. His parents paying his rent and me by not enforcing my employment requirement contributed to making his life comfortable without having to work. We were enabling him to become dependent on others, allowing him to make little economic contribution to society or to himself. Additionally, since a job contributes to one’s self- worth, we contributed to lowering his self-worth. What Congress did by extending unemployment was to allow me to choose to remain dependent on the government for 2 more months. While short term support to help people to get through a rough spot in life, such as a period of unemployment or illness, is good for the individual and society, long term dependency always harms the individual and society no matter the source of dependency, parents, government or landlord. Lessons learned.
Ron Ulmer is an economist, have taught economics/finance at 3 central Illinois universities and employed by Illinois Power as a Senior Rate Analyst, supervisor of economic research, Market Program Manager. Now retired, Current member Normal Kiwanis, past 25 year member Optimist International Service Club, Property owner and manager in Normal for 37 years ongoing.
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