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How to terminate a rental agreement: what landlords and tenants should agree on to avoid problems - Infobae
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www.infobae.com
March 25, 2025
The current Decree modified the termination conditions of the 2020 law, so it's crucial to clarify doubts. How is the compensation calculated and what steps should be taken to avoid conflicts?
By Jose Luis Cieri
In the new free contracts between parties, it is key to define how to proceed in the event of an early termination before the end of the agreement (Illustrative Image Infobae)
Terminating a rental agreement can raise questions and conflicts between landlords and tenants. Since the entry into force of the Decree repealing the Rental Law, the conditions for terminating a rental agreement have changed, and new guidelines and associated costs have been established.
One of the first points to consider is the date the contract was signed, as this determines the applicable legal framework. Contracts entered into under Law 27,551 and its amendment 27,737 (repealed by the current government) are governed by its provisions, while those signed since the entry into force of Decree 70/23 have a different framework for early termination.
Under previous legislation, if the tenant gave 90 days' notice of termination, they did not have to pay compensation to the landlord, as this was considered sufficient time to re-rent the unit. However, if the notice was shorter, compensation equivalent to one and a half months' rent was due if the termination occurred before the first year and one month's rent if it occurred after.
(Illustrative Image Infobae)
Decree 70/23 modified this structure. Currently, there is no mandatory notice period, and the compensation for early termination is equivalent to 10% of the unpaid rent balance until the agreed termination of the contract.
Early termination of a contract requires a formal agreement between both parties. Loyarte stated that "to avoid conflicts, landlords and tenants should sign a document detailing the exact termination date, the condition of the property, and the settlement of outstanding rent and utility bills." This agreement ensures transparency and prevents subsequent claims.
Additionally, it is advisable to conduct a joint inspection of the property to document its condition and facilitate the return of the deposit. In contracts signed before the DNU, the refund amount should be calculated based on the last rent paid.
Once you have been notified of the termination, you must calculate the equivalent of 10% of the remainder of the contract, which must be estimated from the date of notification to the date of termination of the contract (Illustrative Image Infobae)
This penalty replaces the previous scheme and applies only in cases of unilateral termination by the tenant.
Terminating a rental agreement without problems requires carefully reviewing the agreement's clauses. Before making a decision, it's essential to read the contract to identify any additional provisions beyond those established in the Civil and Commercial Code (since the DNU, agreements are governed by this regulation). Each document may include specific requirements regarding deadlines, compensation, and notifications that must be followed to avoid conflicts.
In addition, it's advisable to document all communications between landlord and tenant. Written support, whether through a certified letter or certified email, ensures greater security and clarity in the process.
Although a rental agreement can be terminated at any time, it's ideal to establish the terms and conditions from the outset. Having clear guidelines and writing everything down in the contract helps avoid complications in the future.
www.buysellba.com
Source:
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El DNU vigente modificó las condiciones de rescisión de la ley del 2020, por lo que es clave despejar dudas. Cómo se calcula la indemnización y qué pasos seguir para evitar conflictos
www.infobae.com
March 25, 2025
The current Decree modified the termination conditions of the 2020 law, so it's crucial to clarify doubts. How is the compensation calculated and what steps should be taken to avoid conflicts?
By Jose Luis Cieri
In the new free contracts between parties, it is key to define how to proceed in the event of an early termination before the end of the agreement (Illustrative Image Infobae)
Terminating a rental agreement can raise questions and conflicts between landlords and tenants. Since the entry into force of the Decree repealing the Rental Law, the conditions for terminating a rental agreement have changed, and new guidelines and associated costs have been established.
One of the first points to consider is the date the contract was signed, as this determines the applicable legal framework. Contracts entered into under Law 27,551 and its amendment 27,737 (repealed by the current government) are governed by its provisions, while those signed since the entry into force of Decree 70/23 have a different framework for early termination.
Changes in termination
Based on the changes introduced, to terminate a rental agreement, "tenants can request termination under conditions different from those established in the previous laws, which requires landlords and real estate agencies to verify the applicable regulations," explained Alberto Héctor Loyarte , a real estate expert and real estate broker.Under previous legislation, if the tenant gave 90 days' notice of termination, they did not have to pay compensation to the landlord, as this was considered sufficient time to re-rent the unit. However, if the notice was shorter, compensation equivalent to one and a half months' rent was due if the termination occurred before the first year and one month's rent if it occurred after.
(Illustrative Image Infobae)
Decree 70/23 modified this structure. Currently, there is no mandatory notice period, and the compensation for early termination is equivalent to 10% of the unpaid rent balance until the agreed termination of the contract.
Early termination of a contract requires a formal agreement between both parties. Loyarte stated that "to avoid conflicts, landlords and tenants should sign a document detailing the exact termination date, the condition of the property, and the settlement of outstanding rent and utility bills." This agreement ensures transparency and prevents subsequent claims.
Additionally, it is advisable to conduct a joint inspection of the property to document its condition and facilitate the return of the deposit. In contracts signed before the DNU, the refund amount should be calculated based on the last rent paid.
How to proceed to terminate a contract
The ideal process for a smooth termination includes:- Written notification: The tenant must communicate their decision to the owner, proposing a date for the delivery of the property.
- Property Condition Inspection: An inventory is recommended to verify possible damage.
- Settle outstanding debts: All outstanding rent, expenses, and utilities must be paid before delivery.
- Refund of the deposit: The landlord must return the security deposit, less the cost of necessary repairs, provided this is duly substantiated. For rentals signed before the Decree (December 29, 2023), the refundable deposit must be equivalent to the last rental.
The 10% clause of DNU 70/23
Lucía Otegui , a real estate law specialist, explained that "the 10% clause seeks to compensate the owner for the early termination of the contract, establishing a calculation from the date of notification until the agreed termination."
Once you have been notified of the termination, you must calculate the equivalent of 10% of the remainder of the contract, which must be estimated from the date of notification to the date of termination of the contract (Illustrative Image Infobae)
This penalty replaces the previous scheme and applies only in cases of unilateral termination by the tenant.
Terminating a rental agreement without problems requires carefully reviewing the agreement's clauses. Before making a decision, it's essential to read the contract to identify any additional provisions beyond those established in the Civil and Commercial Code (since the DNU, agreements are governed by this regulation). Each document may include specific requirements regarding deadlines, compensation, and notifications that must be followed to avoid conflicts.
In addition, it's advisable to document all communications between landlord and tenant. Written support, whether through a certified letter or certified email, ensures greater security and clarity in the process.
Although a rental agreement can be terminated at any time, it's ideal to establish the terms and conditions from the outset. Having clear guidelines and writing everything down in the contract helps avoid complications in the future.
www.buysellba.com
