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Everything you need to know before signing a rental contract - Infobae
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Todo lo que hay que saber antes de firmar un contrato de alquiler de vivienda
Derechos de rescisión del acuerdo. División de expensas ordinarias y extraordinarias en el caso de departamentos y propiedad horizontal. Responsabilidad en la reparación de daños
www.infobae.com
October 06, 2024
Rights to terminate the agreement. Division of ordinary and extraordinary expenses in the case of apartments and horizontal property. Responsibility for repairing damages
By Jose Luis Cieri
The most common reason for early termination is the tenant's failure to fulfill his or her contractual obligations. It is advisable to set everything down in the contract before signing it (Illustrative Image Infobae)
Decree 70, which repealed the Rental Law, brought important changes when entering into a rental contract in Argentina, although some points continue to generate doubts.
Less than a year after the implementation of the new scheme, where owners and tenants can agree to unregulated and free contracts, adjusted to the Civil and Commercial Code of the Nation, several questions arise about how to avoid future problems and guarantee a clear agreement between the parties.
This new scenario, with contracts typically lasting two years, encouraged owners who avoided the longer agreements with year-over-year adjustments under the previous law to return to the market.
What are the key guidelines that, if established in advance, will allow for a healthy and smooth contractual relationship?
Get good advice
Before renting a property, landlords should make sure that the contract clearly reflects their expectations and future plans. Since “the contract is the law,” everything agreed between the parties will have more weight than what a judge can decide.It is advisable to include clauses that allow the sale of the property without affecting the tenant, such as the obligation to show the property and put up signs, always with prior notice. It is also essential to specify the responsibilities regarding maintenance and expenses, clearly differentiating between ordinary and extraordinary ones.
Alberto Loyarte , a real estate expert and real estate broker, explained: “It is essential that the contract, being based on the will of the parties, allows for modifications to be made during its term if both parties agree in writing. This provides flexibility to adjust conditions as necessary and maintain a good contractual relationship.”
It is vital to check the condition of the property before renting it and agree on how it should be delivered (Illustrative Image Infobae)
Starting point
Before offering a property for rent, landlords must consider several key aspects to ensure a good deal. First, decide whether to use a real estate agency, which implies legal responsibilities and additional costs. In addition, it is essential to define the desired tenant profile, verify their references, financial situation and guarantees offered.Mariano Esper , a lawyer and professor specializing in real estate and business issues, stressed that property owners should make sure they have legal and, in some cases, accounting advice. “It is crucial to have professional support to avoid complications and establish a solid contract that protects both parties .”
For their part, tenants must thoroughly check the condition of the property before signing the contract.
“It is essential to verify that services such as water, gas and electricity are working properly, and to examine the condition of the appliances. In addition, it is advisable to review the contract with legal advice to clarify doubts and ensure that all terms are clear before signing,” Esper said.
Revision
The importance of carefully reviewing a rental contract is considered crucial to avoid future inconveniences.Diana Sevitz , a specialist in horizontal property and real estate, and a professor at the CIA Real Estate Training Institute, explained that it is essential to “request a copy of the contract before signing. This allows you to verify that essential clauses that protect the interests of the tenant are included, such as respecting the minimum legal term of 2 years in housing contracts, or that the advance payment of more than one month's rent is not required.”
Transparency in the contractual agreement is essential for both parties (Illustrative image Infobae)
Another vital element that the official highlighted to Infobae is “the return of security deposits at the time of returning the property, in order to ensure that the tenant can recover their funds without setbacks.”
Sevitz also recalled that “the signing of promissory notes or other documents is prohibited,” which is an additional protection to avoid unnecessary and unstipulated financial commitments.
Repairs
Another vital aspect to take into account when renting a home is how repairs should be carried out on the property.“In the case of urgent repairs, the tenant can carry them out if more than 24 hours have passed without a response from the landlord after notification, and for non-urgent repairs, the deadline is extended to 10 days. These expenses can be offset against the rental amounts, which favors a fair and equitable relationship between the parties,” added Sevitz.
Clauses
They should also clearly state the terms of the contract, such as the term, price, rent update, and tenant responsibilities.Special care must be taken in drafting the clauses related to the price, the update index, the frequency of price updates, the expenses borne by one party or the other (services, taxes, among others), who assumes the management and cost of breakages and repairs, what happens in the event of fire, liability to third parties for use of the property, fines for non-compliance.
To avoid misunderstandings over expenses, it is essential that this distribution of responsibilities is made explicit in the contract, ensuring that both parties understand their obligations and that what has been agreed upon is respected throughout the contractual relationship.
In this regard, the parties are free to agree on how to distribute the payment. Esper explained: “It is common for ordinary expenses to be paid by the tenant and extraordinary expenses by the landlord. Special expenses , such as fines for non-compliance with regulations, should be paid by the tenant if he or she is the one who violated the rules of coexistence.”
Rental price and payment method
The monthly rent amount, the method and place of payment (bank transfer, cash, among others) must be clearly stipulated.“In addition, the contract should include payment dates and any late payment penalties,” Sevitz added.
The rental value and adjustment guidelines must be reasonable and aligned with the prices of the area. As for guarantees, it is important to evaluate the different options. If a property guarantee is requested, in addition to the title, the guarantor must prove income, and in the case of properties in the Province of Buenos Aires, they must be assets other than the guarantor's home, since they are not subject to seizure by provincial law.
Alberto Loyarte said that “surety insurance policies are gaining acceptance, as insurance companies verify the tenant's financial and compliance background, and take responsibility in case of non-compliance, providing greater security to owners.
Use and purpose of the property
The contract must clearly state that the property is rented for residential use only, and specify whether or not modifications or improvements to the property are permitted.
The contract must clearly stipulate that the property is rented for exclusive residential use.
For the owner, it is particularly important to have a good guarantee, i.e. financially solvent.
It is vital that the contract clearly specifies who is the landlord (owner) and who is the tenant (tenant), including full names, ID and address.
Diana Sevitz said: “In addition, an accurate description of the property being rented must be included, specifying location, physical characteristics, size, number of rooms, services included and any other relevant information.”
Early cancellation
The termination of a rental contract by the tenant may be due to multiple reasons, such as a change of workplace, health problems, cancellation of service contracts with professionals, or the loss of employment of the tenant. These situations, with prior notice to the owner, allow the possibility of terminating the contract.According to Loyarte, in accordance with the current DNU, "the penalty for early termination of the contract is 10% of the value of the rents that remain to be fulfilled until the termination date provided for in the contract."
The most common reasons for terminating a rental contract early are varied. They may include dissatisfaction with the property, its location or the neighbours, changes in the tenant's personal situation, such as a growing family or problems with cohabitation. Tensions with the landlord due to conflicts in the contractual relationship are also common.
Mariano Esper said that it is essential to follow a formal process for termination. “All aspects of the contract must be reviewed, such as the condition of the property, the existence of debts for services or expenses, and guaranteeing the return of the security deposit. Everything must be recorded in a written agreement, such as a Restitution Deed, signed by both parties and the guarantor.”
Esper stressed that all aspects of the contract must be reviewed, such as the condition of the property, the existence of debts for services or expenses, and guaranteeing the return of the security deposit (Photo: Getty)
More expensive expenses
Expenses in CABA have risen by 114% so far this year , which generates back and forth when signing a contract. The experts consulted by this newspaper highlighted that it is crucial that the responsibilities regarding the summary of ordinary and extraordinary expenses are clearly established in the agreement.“These clauses ensure an adequate legal framework and avoid future conflicts, protecting both the owner and the tenant during the contractual relationship,” concluded Sevitz.
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