GM!!!
I wanted to share an idea that we have recently implemented. We built a cabin on our property and signed a bitcoin incentivized lease for its use.
Landlords and tenant relationships are often very strained these days, and young people generally have very little interest in owning their own home, often because it feels like a hopeless goal. And of course, it is a valid argument that HODLing bitcoin may be a wiser move than investing in real estate. I get it.
SO…. why not upgrade the Landlord / Tenant relationship while introducing the tenant to bitcoin and better aligning incentives? The lease we signed yesterday:
* Starts with a standard lease, compliant with Landlord / Tenant Act terms in our state;
* Includes the standard, boring security deposit in escrow (first and last month's rent provided by the tenant, kept in a trad-fi USD interest bearing savings account);
* In addition, the Landlord matches that security deposit, escrowed in bitcoin (in a dedicated wallet)
* In months where rent is paid on time, up to 10% of the rent is added to this bitcoin wallet, illustrating a DCA approach;
* Incentives are further aligned through the following reward plan, as long as rent is paid on time, the property is cared for (good stewardship) and any disputes are worked out as adults (no lawyers required):
>1 Year Term complete: tenant receives back greater of USD vs. BTC account
> 2 Year Term complete: tenant receives back USD security deposit AND 50% of BTC account
>3 or more Year Term complete: tenant receives back USD security deposit AND 75% of the BTC account.
If all goes well, at the end of the lease, the tenant could have a good start to a down payment for their own property, or some other worthy goal. And perhaps they also begin their own good DCA and HODLing habits along the way.
Feel free to comment, ask questions, or just borrow the idea in your legal jurisdiction.
AND... a shout out to nostr:nprofile1qyx8wumn8ghj7cnjvghxjmcpz4mhxue69uhk2er9dchxummnw3ezumrpdejqqgp4kg7dqtfdwhj4em3clhhzd0yz78g460y4szqqkp9smghdkaghaglmys9t for helping configure a dedicated account for this purpose, AND for the interest paid in BTC on the otherwise BORING USD escrow account!
