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How to reduce costs for the tenant when signing a rental contract - Infobae
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Cómo reducir costos para el inquilino a la hora de firmar un contrato de alquiler
Aunque los precios muestran una ligera retracción, en CABA aún superan en promedio los $300.000 para departamentos de 3 ambientes. Qué elementos son clave para lograr acuerdos beneficiosos para ambas partes. Algo a tener muy en cuenta: el valor, qué tipo de expensas y quién debe pagarlas
www.infobae.com
March 23, 2024
Although prices show a slight decline, in CABA they still exceed $300,000 on average for 3-room apartments. What elements are key to achieving beneficial agreements for both parties. Something to keep in mind: the value, what type of expenses and who must pay them
By José Luis Cieri
Handing over the keys marks the beginning of a contract in an empty apartment ready to move into. A symbol of moving, rentals, contract, housing, where tenant and owner agree (Illustrative image Infobae)
After the DNU that repealed the Rental Law, the supply grew to record levels ( the Senate rejected the rule, but it will remain in force as long as it is not rejected by the Deputies ) and now housing is proposed for rent in the traditional way in most neighborhoods of the city of Buenos Aires. Despite experiencing a slowdown, rental prices remain high and tenants must adopt new strategies in order to mitigate costs.
From the sector they suggest that those who are searching for or about to sign a new contract take advantage of the current regulations , which provide greater freedom to establish agreements between tenants and owners.
It is advisable that both parties, either through the intermediation of real estate professionals or directly between themselves, discuss all the terms in detail before formalizing the contract. It is even possible to agree on different adjustment periods throughout the duration of the contract, as long as it is properly documented.
Diego Frangella , president of the Buenos Aires Real Estate Professional Association, told Infobae that with the increase in supply, tenants have more price and neighborhood options. “Currently, it is possible to find 2-room rentals that range between $280,000 and $400,000 per month,” he said.
A crucial resource for tenants is to make counteroffers in relation to the initial price proposed by the owner or in the publication of the notice.
Another key aspect in this initial negotiation is establishing the rate and specific times to adjust the agreement.
“The majority of contracts are being formalized for a period of 24 months, with quarterly, quarterly or semi-annual adjustments, using both the Consumer Price Index (CPI) and the Lease Contract Index (ICL),” explained Armando Pepe, a reference in the real estate sector.
Rising expenses: what to look for
It is important that tenants carefully examine the monthly cost of building expenses before signing a contract. This aspect becomes fundamental in a context in which expenses also experienced a notable increase, more than 180% year-on-year .
The PHs are among the most in demand because few expenses are paid or they are not paid at all.
Pepe stressed the relevance of this step. “It is crucial to know the amount of expenses, which include supplies, rates, ABL, other taxes and staff salaries. In our agreements, we specify that the tenant assumes the ordinary and usual expenses, while the owner is responsible for the extraordinary ones. Although the DNU supports that the tenant covers the entire amount, he should not be responsible for expenses associated with the consortium's decisions, such as painting the front of the building or undertaking other renovations in common areas; those costs should be the responsibility of the owners,” he said.
Expenses are a constant concern and this is why buildings with efficient management, optimal maintenance and fewer additional services tend to receive greater acceptance from tenants.
“PHs are the most sought-after properties due to their low expenses. Many don't even charge them. Although the most recent apartments tend to have lower maintenance costs, amenities, security and the number of units have a significant influence,” said Frangella.
Greater offer and start of contract
The meeting point is being reached through the approximation of both parties, with the formalization of 24-month contracts and a quarterly or quarterly update.According to the school's Statistical Observatory and the analysis of data obtained through the CABAProp portal, where enrollees offer their properties, a notable increase in supply is observed. “In December there was an increase of 22%, in January of 68%, and in February of 16%, accumulating an increase of 106% since the implementation of the DNU,” said Frangella.
Another key aspect for the start of the agreement is that the tenant has a solid guarantee, either through a private bond and guarantee company or through a family member who acts as guarantor.
The need to reach agreements that favor the tenant in terms of frequency of adjustments is key.
“And in our case we make contracts in pesos. We have had owners who tried to leave us the keys and make transactions in dollars, but we did not accept it. In our company, we only work with rental contracts in pesos,” said Pepe.
Voice of tenants
In seeking to pay less from the beginning of the contract, the main strategy for tenants lies in managing adjustments based on the CPI, at least every five or six months. It is advisable to aim for the greatest number of months without adjustment, since frequent increases significantly affect the total cost of the rental.Ricardo Botana, president of the Argentine Tenants Union, highlighted the volatility in the forecasts, indicating that what is initially displayed may vary in a matter of months. “In this context, the issue of expenses is particularly unpredictable at present, motivating tenants to be cautious and carefully consider this factor before deciding to rent.”
In the housing rental process, the main demonstration that the tenant must make is that they have a solid income, especially at the first contact. The guarantee, which is experiencing notable growth, is supported by both surety entities and insurance, highlighting the importance of the tenant's salary and job stability as primary factors beyond the theoretical guarantee they have.
“Today it is positive to observe an increase in inquiries and in the supply of properties for rent since the implementation of the DNU. Likewise, this increase in proposals generates greater predictability in contracts, anticipating that inflation will trend downward. It is likely that in the medium term, this balance in supply and demand will be key to stabilizing prices, offering a positive outlook for tenants,” Botana concluded.
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