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A year without a rental law: 8 recommendations to prevent conflicts between landlords and tenants - Infobae
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www.infobae.com
January 27, 2025
Following the elimination of the 2020 rule, parties that must sign contracts under the deregulatory DNU must pay attention to issues such as termination, expenses, damages and who bears the costs.
By Jose Luis Cieri
Decree 70/2023 brought with it greater contractual flexibility, but required the parties to negotiate more in detail and in a more personalized manner. Tenants and owners must advocate for clear and well-advised agreements to take advantage of the new possibilities without falling into subsequent conflicts (Illustrative Image Infobae)
One year after the repeal of the Rental Law through the Government's DNU 70/2023, the rental market outlook in Argentina is facing new challenges. The "freedom of contract" introduced by this decree leaves both tenants and landlords with doubts about how to properly formalize a contract.
In a scenario of greater supply, especially in CABA —where there are currently around 16,000 properties and the historical levels prior to the law have returned—, listings in pesos predominate. With a different economy than 13 months ago, 90% of contracts are established in local currency , although the DNU enables the use of all types of currencies and adjustments.
Below are 8 tips for landlords and tenants to establish a balanced rental agreement and avoid future conflicts.
One of the points highlighted by lawyer Lucía Otegui is the flexibility in the new rules, where it is now also possible to establish the rent in any currency, which "allows for agreements in dollars, although it is always key to ensure that this is explicitly established, since the tenant is only released from the debt by paying in the agreed currency," she told Infobae .
Furthermore, it is stressed that clauses, such as price updates, must conform to what was agreed by the parties and be reflected accurately to avoid misunderstandings.
On the other hand, regarding repairs, Jorge Resqui Pizarro , president of the Center for Studies of Horizontal Property and Society (CePHyS), suggested that both urgent and non-urgent repairs be indicated in the contract.
“It is advisable to define the conditions and deadlines for resolution to avoid conflicts. It is also advisable to include in the contract the possibility of offsetting rents if the tenant assumes costs with the consent of the owner, as well as establishing email addresses for notifications,” said Resqui Pizarro.
A common topic of consultation for landlords and tenants is the adjustment schedule and its frequency. To address this issue, it is recommended to include a clause that covers cases where the agreed index for adjustment has not been published, whether quarterly, half-yearly or with another frequency.
Mariano Lo Valvo , a real estate expert, said that “it is advisable to make quarterly or half-yearly adjustments, especially now that inflation has decreased and prices are no longer rising as intensely as they were until mid-2024.”
This scheme benefits both landlords and tenants in the current context. “For the former, it guarantees a more frequent update in line with economic developments, while for tenants it allows them to avoid high annual adjustments and distribute the increases more gradually, providing predictability in a market in transition,” explained Lo Valvo.
It is essential to specify the type and amount of guarantees in the contract , since there is no defined limit.
This avoids conflicts and ensures that both parties know the conditions from the beginning.
"There is no limit on the amount of guarantees, the parties must set it, indicating how many they will use and which ones, with a detailed description," said Otegui.
Early termination can be done at any time , but involves paying 10% of future rental values.
The deposit can be agreed upon in various currencies or for several months, provided that it is agreed upon between the parties.
Otegui stressed the importance of verifying that this condition is documented in the final contract to prevent misunderstandings.
Decree 70/2023 eliminated the distinction between ordinary and extraordinary expenses , which implies that the owner must assume the extraordinary ones, especially those approved in consortium meetings.
For tenants, it is recommended to photograph the property once received so that it is documented and thus avoid future claims from the other party (Illustrative Image Infobae)
Resqui Pizarro stressed that “it is crucial to specify these responsibilities in the contract to avoid future conflicts.”
Otegui explained that “the new agreements, however, must comply with the provisions of the DNU.”
A practical example: a contract renewed in October 2023 will continue under the previous rules, while those signed after the aforementioned date must adhere to the current decree.
Recording the condition of the property at the start of the contract is key to preventing disputes.
Resqui Pizarro recommended including photographs signed by both parties, with corresponding dates, and specifying whether the property is being handed over painted or with pending repairs . This establishes clear expectations for the return.
“The joint review of the contract, preferably in face-to-face meetings, ensures that all commitments are reflected unambiguously,” concluded Otegui.
www.buysellba.com
Source:
Un año sin ley de alquileres: 8 recomendaciones para prevenir conflictos entre propietarios e inquilinos
Tras la eliminación de la norma de 2020, las partes que deben firmar contratos en el marco del DNU desregulador deben prestar atención a cuestiones como rescisión, expensas, daños y quién asume los costos
www.infobae.com
January 27, 2025
Following the elimination of the 2020 rule, parties that must sign contracts under the deregulatory DNU must pay attention to issues such as termination, expenses, damages and who bears the costs.
By Jose Luis Cieri
Decree 70/2023 brought with it greater contractual flexibility, but required the parties to negotiate more in detail and in a more personalized manner. Tenants and owners must advocate for clear and well-advised agreements to take advantage of the new possibilities without falling into subsequent conflicts (Illustrative Image Infobae)
One year after the repeal of the Rental Law through the Government's DNU 70/2023, the rental market outlook in Argentina is facing new challenges. The "freedom of contract" introduced by this decree leaves both tenants and landlords with doubts about how to properly formalize a contract.
In a scenario of greater supply, especially in CABA —where there are currently around 16,000 properties and the historical levels prior to the law have returned—, listings in pesos predominate. With a different economy than 13 months ago, 90% of contracts are established in local currency , although the DNU enables the use of all types of currencies and adjustments.
Below are 8 tips for landlords and tenants to establish a balanced rental agreement and avoid future conflicts.
1. Establish detailed agreements
One of the points highlighted by lawyer Lucía Otegui is the flexibility in the new rules, where it is now also possible to establish the rent in any currency, which "allows for agreements in dollars, although it is always key to ensure that this is explicitly established, since the tenant is only released from the debt by paying in the agreed currency," she told Infobae .
Furthermore, it is stressed that clauses, such as price updates, must conform to what was agreed by the parties and be reflected accurately to avoid misunderstandings.
On the other hand, regarding repairs, Jorge Resqui Pizarro , president of the Center for Studies of Horizontal Property and Society (CePHyS), suggested that both urgent and non-urgent repairs be indicated in the contract.
“It is advisable to define the conditions and deadlines for resolution to avoid conflicts. It is also advisable to include in the contract the possibility of offsetting rents if the tenant assumes costs with the consent of the owner, as well as establishing email addresses for notifications,” said Resqui Pizarro.
2. Beware of adjustment clauses
A common topic of consultation for landlords and tenants is the adjustment schedule and its frequency. To address this issue, it is recommended to include a clause that covers cases where the agreed index for adjustment has not been published, whether quarterly, half-yearly or with another frequency.
Mariano Lo Valvo , a real estate expert, said that “it is advisable to make quarterly or half-yearly adjustments, especially now that inflation has decreased and prices are no longer rising as intensely as they were until mid-2024.”
This scheme benefits both landlords and tenants in the current context. “For the former, it guarantees a more frequent update in line with economic developments, while for tenants it allows them to avoid high annual adjustments and distribute the increases more gradually, providing predictability in a market in transition,” explained Lo Valvo.
3. Warranties and termination
It is essential to specify the type and amount of guarantees in the contract , since there is no defined limit.
This avoids conflicts and ensures that both parties know the conditions from the beginning.
"There is no limit on the amount of guarantees, the parties must set it, indicating how many they will use and which ones, with a detailed description," said Otegui.
Early termination can be done at any time , but involves paying 10% of future rental values.
4.Deposit in different currencies
The deposit can be agreed upon in various currencies or for several months, provided that it is agreed upon between the parties.
Otegui stressed the importance of verifying that this condition is documented in the final contract to prevent misunderstandings.
5.Responsibility for expenses
Decree 70/2023 eliminated the distinction between ordinary and extraordinary expenses , which implies that the owner must assume the extraordinary ones, especially those approved in consortium meetings.
For tenants, it is recommended to photograph the property once received so that it is documented and thus avoid future claims from the other party (Illustrative Image Infobae)
Resqui Pizarro stressed that “it is crucial to specify these responsibilities in the contract to avoid future conflicts.”
6. Differences in old and new contracts
Contracts renewed before 29 December 2023 remain governed by the previous regulations, according to the principle of non-retroactivity.Otegui explained that “the new agreements, however, must comply with the provisions of the DNU.”
A practical example: a contract renewed in October 2023 will continue under the previous rules, while those signed after the aforementioned date must adhere to the current decree.
7. Document the condition of the property
Recording the condition of the property at the start of the contract is key to preventing disputes.
Resqui Pizarro recommended including photographs signed by both parties, with corresponding dates, and specifying whether the property is being handed over painted or with pending repairs . This establishes clear expectations for the return.
8. Seek prior advice
It is also advisable to have professional advice. Consulting with specialized lawyers or real estate agents is essential to avoid legal problems .“The joint review of the contract, preferably in face-to-face meetings, ensures that all commitments are reflected unambiguously,” concluded Otegui.
www.buysellba.com
