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Rental Law: Exceptions of contracts for less than 3 years - Infobae
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Ley de Alquileres: cuáles son las excepciones que permiten hacer contratos por menos de 3 años
El plazo mínimo de 36 meses, establecido desde 2020, se mantiene tras la última actualización de la normativa. Sin embargo, se contemplan varias singularidades
www.infobae.com
November 3, 2023
Rental Law: What are the exceptions that allow contracts for less than 3 years
The minimum period of 36 months, established since 2020, is maintained after the last update of the regulations. However, several singularities are contemplated.
There are some legal exceptions to signing a rental contract for less than 36 months (Photo: Getty)
The Rental Law , passed in June 2020 and recently reformed by the National Congress (the modification came into effect on October 18), brought with it various modifications that require attention. However, it is crucial to note that it did not alter the standard duration of the contracts, which continue to be for a period of 3 years.
And the other modification is that new contracts are updated through the Own House coefficient and on a semiannual basis, they coexist with those that maintain previous contracts and continue using the Rental Contract Index (ICL) established by the Rental Law in June 2020. This coexistence began this month.
Casa Propia allows the semiannual update based on the lowest indicator between the average inflation of the last year and 90% of the salary variation in that period. Despite the benefits for tenants that Casa Propia offers, landlords are still reluctant to offer long-term contracts.
When they can be for less than 36 months
The recent modification of the Civil and Commercial Code (also called national law 27,737) establishes that any rental contract for real estate, regardless of its use, is considered concluded for a minimum legal period of 3 years if it does not specify an express and longer term.Experts clarified that in the following article, 1199, in the last part of the reform, which can be used for contracts for residential purposes as well as for other purposes such as shops or offices. The text clarifies that this general rule will continue to have a series of exceptions.
Enrique Abatti (h.), lawyer specialized in real estate law and director of the Chamber of Owners of the Argentine Republic, told Infobae that “it is the legal alternative we have to be able to sign a rental contract for a period of less than three years. In that agreement, that article is invoked and the tenant states what purpose they need to fulfill, justifying in this way why an agreement of one and a half or two years is concluded, depending on the agreement that is signed by common agreement with the owner of the property. property".
There are five situations in which rental contracts may have a duration of less than 36 months.
Below are the types of agreements in which the minimum term does not apply, allowing the parties to agree on shorter rentals.
Rentals for specific purposes
Law 27,737 contemplates exceptions to the minimum legal term of 3 years in rental contracts, allowing them to be of shorter duration when their specific purpose is the fulfillment of a specific objective expressed in the agreement. This gives owners the ability to rent homes to people who require the space for a limited time to meet particular needs, such as those coming to the city to study, undertake short-term internships or receive medical treatment.
In the case of extensions, experts advise that it is important to avoid extending the contract or renewal beyond 3 months, as the owner may have difficulty demonstrating the purpose and risk claims based on a 3-year duration.
Luciano Lo Valvo, a real estate professional who operates in the Almagro and Palermo area, explained to Infobae that this provision applies, for example, to those who come from the interior to be treated in health institutions such as the Italian Hospital or the Sanatorio de los Arcos. . “In such cases, 3-month or one-year contracts are usually agreed upon, which allows them to access shared housing with family or friends who care for them, while being close to the health centers where they must receive care. These rentals usually involve furnished properties and are agreed in pesos, unlike temporary properties, which are often negotiated in dollars.”
Tourist temporary rentals
Other exceptions to the minimum legal term of 3 years apply to contracts concluded for tourism, rest or similar purposes, which must be for furnished properties, and their duration (added the term of renewals, extensions or any extension of the contract) does not apply. may exceed 3 months in total.“If this period is exceeded, then it is considered to be a contract concluded for the minimum legal term and the tenant can intend to remain in the property for 3 years, logically, paying a monthly price, since otherwise there would be unjust enrichment. in their favor,” Abatti (h.) clarified.
The current law allows renting furnished homes for short periods, with a maximum of 3 months, as long as they are used for tourism, rest or other temporary purposes for the benefit of the tenant.
If the contract or consecutive contracts exceed 3 months, it is presumed that they were not made for those purposes, unless the contrary is proven, as established by the standard. Specialists recommend that it is important to avoid extension or renewal beyond 3 months, since the owner could have difficulties proving the purpose and risk claims based on a duration of 3 years.
For diplomatic use
The law establishes that the minimum period of 3 years does not apply to properties intended to be used as headquarters of embassies, consulates or by international organizations. Likewise, housing rented to house foreign diplomatic or consular personnel who provide services in said official offices are also exempt from this duration restriction.
It is key that the contract explicitly indicates that it is concluded for a shorter period because the tenant pursues a specific purpose.
Fair agreements
Regarding fair rentals, the current law establishes that there is no minimum duration for rental contracts for stalls at markets or fairs.Rentals for storage
The 3-year period is also not mandatory for rentals of properties intended for “storage” functions. This includes properties such as garages, as well as those that will be used as storage rooms or warehouses.Recommendation
It is essential that the contract explicitly states that it is concluded for a shorter period because the tenant pursues a specific purpose.For example, if the tenant is in the process of renovating their home and requires a place to live with their family during the 8 months that the work will last.
A second example could be a tenant who resides in another region of the country and will begin a graduate program in a different city, which will last 18 months. During that period, she will need a place to live.
Abatti (h.) concluded: “This approach is applicable to both housing contracts and office or commercial premises contracts.”
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