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Express and sky-high rentals: despite the prices, the apartments are occupied in less than 24 hours and without a prior visit - Infobae
Source:
www.infobae.com
October 10, 2023
The debate in Congress on the Rental Law exacerbated the already critical shortage of supply and rising values. Experts point to an increase in informal agreements and contracts where the owners set the conditions
By José Luis Cieri
A man supports the weight of a house on his shoulders, representing the challenges of high rents, rising costs of living and economic pressure (Illustrative image Infobae).
At the same time that the reform of the Rental Law is under review and could receive sanction this week, in the City of Buenos Aires and the suburbs, homes with prices in pesos are rented in less than 24 hours.
Experts argue that since the debate was resumed in Congress, the shortage intensified and informal agreements outside the law grew, including agreements between direct owners and tenants without the intermediation of real estate companies, as well as extensions for 3 or 6 months. for contracts that expired from September onwards.
Currently, getting a home to rent has become very complex due to two main factors: rising prices and lack of supply. In CABA and the GBA, year-on-year rental increases exceed 150%, well above the 115% recorded by the Lease Contract Index (ICL) for October. Furthermore, in some suburban districts, the offer in pesos is limited to less than 20 available apartments.
Pablo Houghton, from Houghton Properties, explained to Infobae that although finding a home in CABA is more difficult due to high demand, the rental process is usually faster once a property is found. “This is due to the efficiency of the property registry in CABA, where a domain report can be obtained in one day by paying an additional fee. In contrast, in the province of Buenos Aires, the report takes at least 3 or 4 days, and that is assuming that there are no union measures that restrict the service.”
The increasing difficulty in finding a home has turned the search into a true odyssey. Given the high demand, it is increasingly common for owners to establish waiting lists for their units. Furthermore, rental advertisements are usually withdrawn in less than 24 hours after publication, as real estate agencies are unable to respond to the avalanche of inquiries received.
For years, demand for apartment rentals has significantly exceeded supply, in part due to the lack of sustainable mortgage loans for home purchases. This trend is especially notable in cities with high demand, such as the city of San Miguel, which is the head of the homonymous party.
Ariel José Córdoba, public auctioneer of Córdoba Properties, told Infobae that the urgency of finding a place to live falls mainly on the tenants. “During the months of August and September, we rented eight apartments to new tenants and observed two particular situations. In one case, we showed a functional unit to three potential customers simultaneously, with the knowledge of everyone involved. In another, two units were reserved without having been previously seen by the tenants. In these cases, a receipt was issued with an ad referendum clause, allowing the tenant to continue with the rental process only if they liked the unit after viewing it.”
What is most sought after for rent are 1-bedroom properties, secondly studio apartments and finally 2-bedroom units, which are needed by a typical family with one or two children.
In San Miguel, as in other districts of Greater Buenos Aires, the lack of supply of properties to rent in pesos is becoming more evident (Google Street View)
In San Miguel, where supply is limited, rental prices vary significantly. According to Córdoba, “a 1-bedroom apartment of 55 m2, with a garage and storage room, has a monthly cost of about 160,000 pesos. A 2-bedroom apartment of 75 m2, about $190,000 per month, while a 2-bedroom house starts at 260,000 pesos.”
In the southern part of the GBA, meanwhile, the few rents for two-room apartments range from $180,000 (Lanús and Avellaneda) and a 3-room apartment in Temperley costs over $250,000 per month, but they are almost not found in this part of the Lomas district. from Zamora.
In CABA, tenants who already reside in 2- or 3-bedroom apartments find it necessary to negotiate extensions with the owners. Although the number of deeds has increased significantly in this period of crisis, property owners are reluctant to sell due to low prices compared to previous periods. Therefore, they choose to renew existing rental contracts.
Houghton noted that “the situation is distressing for many who cannot find a place to move. They are often forced to move away from their original neighborhood. In this context, the owners establish the conditions. On the other hand, owners with contracts signed since 2020 face the depreciation of the purchasing power of their income due to high inflation and constant devaluations. Many tell us that they can no longer cover expenses that they could before, such as school fees and prepaid social services, among others.”
By Jose Luis Cieri
Source:
Alquileres express y por las nubes: a pesar de los precios, los departamentos se ocupan en menos de 24 horas y sin visita previa
El debate en el Congreso sobre la Ley de Alquileres exacerbó la ya crítica escasez de oferta y los valores en alza. Expertos señalan un aumento en acuerdos informales y contratos donde los propietarios ponen las condiciones
www.infobae.com
October 10, 2023
The debate in Congress on the Rental Law exacerbated the already critical shortage of supply and rising values. Experts point to an increase in informal agreements and contracts where the owners set the conditions
By José Luis Cieri
A man supports the weight of a house on his shoulders, representing the challenges of high rents, rising costs of living and economic pressure (Illustrative image Infobae).
At the same time that the reform of the Rental Law is under review and could receive sanction this week, in the City of Buenos Aires and the suburbs, homes with prices in pesos are rented in less than 24 hours.
Experts argue that since the debate was resumed in Congress, the shortage intensified and informal agreements outside the law grew, including agreements between direct owners and tenants without the intermediation of real estate companies, as well as extensions for 3 or 6 months. for contracts that expired from September onwards.
Currently, getting a home to rent has become very complex due to two main factors: rising prices and lack of supply. In CABA and the GBA, year-on-year rental increases exceed 150%, well above the 115% recorded by the Lease Contract Index (ICL) for October. Furthermore, in some suburban districts, the offer in pesos is limited to less than 20 available apartments.
Pablo Houghton, from Houghton Properties, explained to Infobae that although finding a home in CABA is more difficult due to high demand, the rental process is usually faster once a property is found. “This is due to the efficiency of the property registry in CABA, where a domain report can be obtained in one day by paying an additional fee. In contrast, in the province of Buenos Aires, the report takes at least 3 or 4 days, and that is assuming that there are no union measures that restrict the service.”
The increasing difficulty in finding a home has turned the search into a true odyssey. Given the high demand, it is increasingly common for owners to establish waiting lists for their units. Furthermore, rental advertisements are usually withdrawn in less than 24 hours after publication, as real estate agencies are unable to respond to the avalanche of inquiries received.
Given the lack of supply and high competition, many tenants choose to reserve the property before viewing it, with the aim of getting ahead of other candidates. Houghton noted that “we have had cases of people calling within five minutes of publishing the ad, requesting an appointment at the office to reserve first and visit the property later.”
Despair and lack of credit
For years, demand for apartment rentals has significantly exceeded supply, in part due to the lack of sustainable mortgage loans for home purchases. This trend is especially notable in cities with high demand, such as the city of San Miguel, which is the head of the homonymous party.
Ariel José Córdoba, public auctioneer of Córdoba Properties, told Infobae that the urgency of finding a place to live falls mainly on the tenants. “During the months of August and September, we rented eight apartments to new tenants and observed two particular situations. In one case, we showed a functional unit to three potential customers simultaneously, with the knowledge of everyone involved. In another, two units were reserved without having been previously seen by the tenants. In these cases, a receipt was issued with an ad referendum clause, allowing the tenant to continue with the rental process only if they liked the unit after viewing it.”
What is most sought after for rent are 1-bedroom properties, secondly studio apartments and finally 2-bedroom units, which are needed by a typical family with one or two children.
In San Miguel, as in other districts of Greater Buenos Aires, the lack of supply of properties to rent in pesos is becoming more evident (Google Street View)
In San Miguel, where supply is limited, rental prices vary significantly. According to Córdoba, “a 1-bedroom apartment of 55 m2, with a garage and storage room, has a monthly cost of about 160,000 pesos. A 2-bedroom apartment of 75 m2, about $190,000 per month, while a 2-bedroom house starts at 260,000 pesos.”
In the southern part of the GBA, meanwhile, the few rents for two-room apartments range from $180,000 (Lanús and Avellaneda) and a 3-room apartment in Temperley costs over $250,000 per month, but they are almost not found in this part of the Lomas district. from Zamora.
In CABA, tenants who already reside in 2- or 3-bedroom apartments find it necessary to negotiate extensions with the owners. Although the number of deeds has increased significantly in this period of crisis, property owners are reluctant to sell due to low prices compared to previous periods. Therefore, they choose to renew existing rental contracts.
Indecision
While Congress evaluates possible modifications to the rental law, uncertainty affects both tenants and owners. However, the urgency varies: it falls more on the tenant if the contract is about to expire and, on the owner, if the expiration is still far away. This is because tenants with expiring contracts anticipate increases that could double or triple their current rent, often with the additional intention on the part of the landlords to dollarize the rent.Houghton noted that “the situation is distressing for many who cannot find a place to move. They are often forced to move away from their original neighborhood. In this context, the owners establish the conditions. On the other hand, owners with contracts signed since 2020 face the depreciation of the purchasing power of their income due to high inflation and constant devaluations. Many tell us that they can no longer cover expenses that they could before, such as school fees and prepaid social services, among others.”
By Jose Luis Cieri
