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Rentals: After the approval of the law, new contracts were stopped and there are sharp increases in extensions - Infobae
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www.infobae.com
October 13, 2023
The recent sanction of changes in regulations left the sector in a state of uncertainty. The extension of contracts to three years and the implementation of the Casa Propia coefficient generate concern
By José Luis Cieri
Obtaining the keys to rent a home in Argentina has been a difficult action to achieve: there is an increasing shortage of supply and prices that rise without brake (Illustrative image Infobae)
The recent approval of the changes proposed by the officialism to the Rental Law, enacted in June 2020, has revived a debate in the marketer sector. Experts anticipate that these modifications could result in an almost total reduction in the rental supply and an increase in the prices of new contracts. In addition, agreements that were about to be finalized were stopped.
The new rule is expected to come into effect later this month or in early November.
They have increasing difficulties renting, despite the new law (Illustrative image Infobae)
Soledad Balayan, from Maure Inmobiliaria, assured that no new contracts are being formalized and the formal market is stopped. “Those looking for rentals get in direct contact with the owners of available apartments to agree on conditions and prices individually. The recent changes in the law are considered irrelevant to the day-to-day life of the sector,” she said.
Experts maintain that the reforms approved in Deputies will not favor the increase in the supply of rental housing. Real Estate Report reported a 63% reduction in Buenos Aires supply in the last two years. Furthermore, the decisions of owners who have apartments for rent will not be altered by these changes; There is not expected to be an increase in willingness to rent under the new regulations.
“It is important to highlight that many owners had expectations regarding the Deputies' proposals, which included the possibility of returning to two-year contracts with free adjustments and agreements between the parties every 6 months or quarterly. These modifications, if approved, would have promoted a greater number of contracts under the law,” Balayan said.
Tenants with contracts that expire in October are forced to resort to extensions. In most cases, owners only accept 3- or 6-month extensions, rather than the annual extensions that were common a few months ago.
Despite tax incentives for homeowners, prospects are low. The reform incorporated a last paragraph on article 9, in which it determined that income from the rental of up to two properties will be exempt from paying the monotax.
“The pain points of the law were partially modified and the tax improvements for owners will not be enough for them to re-enter their property into the permanent residential rental market. The supply will continue to be almost non-existent and the informality of the rental market will continue to be very high,” Mariano García Malbrán , president of the Chamber of Real Estate Services Companies, told Infobae.
In addition, the parties may deduct from the Income Tax the sum equivalent to 10% of the annual amount of the lease contract.
Verónica Pagola , CEO of Century 21 Argentina, believes that the modifications will not bring different results than those experienced since June 2020. “Based on previous experiences of state regulation that have tended to harm the tenant. Not only in this specific area, but also in others where this desire to balance negotiating positions, no matter how good the intention may be, ends up harming the weakest,” she concluded.
www.buysellba.com
Source:
Alquileres: luego de la aprobación de la ley, se frenaron los nuevos contratos y hay fuertes aumentos en las prórrogas
La reciente sanción de cambios en la normativa dejó al sector en un estado de incertidumbre. La extensión de contratos a tres años y la implementación del coeficiente Casa Propia generan preocupación
www.infobae.com
October 13, 2023
The recent sanction of changes in regulations left the sector in a state of uncertainty. The extension of contracts to three years and the implementation of the Casa Propia coefficient generate concern
By José Luis Cieri
Obtaining the keys to rent a home in Argentina has been a difficult action to achieve: there is an increasing shortage of supply and prices that rise without brake (Illustrative image Infobae)
The recent approval of the changes proposed by the officialism to the Rental Law, enacted in June 2020, has revived a debate in the marketer sector. Experts anticipate that these modifications could result in an almost total reduction in the rental supply and an increase in the prices of new contracts. In addition, agreements that were about to be finalized were stopped.
The new rule is expected to come into effect later this month or in early November.
They have increasing difficulties renting, despite the new law (Illustrative image Infobae)
Soledad Balayan, from Maure Inmobiliaria, assured that no new contracts are being formalized and the formal market is stopped. “Those looking for rentals get in direct contact with the owners of available apartments to agree on conditions and prices individually. The recent changes in the law are considered irrelevant to the day-to-day life of the sector,” she said.
Experts maintain that the reforms approved in Deputies will not favor the increase in the supply of rental housing. Real Estate Report reported a 63% reduction in Buenos Aires supply in the last two years. Furthermore, the decisions of owners who have apartments for rent will not be altered by these changes; There is not expected to be an increase in willingness to rent under the new regulations.
“It is important to highlight that many owners had expectations regarding the Deputies' proposals, which included the possibility of returning to two-year contracts with free adjustments and agreements between the parties every 6 months or quarterly. These modifications, if approved, would have promoted a greater number of contracts under the law,” Balayan said.
Uploads and extensions
Rental increases in CABA and Greater Buenos Aires exceeded 143% through September 2023, with year-on-year increases exceeding 200% for apartments and houses, considerably more than the 115% year-on-year provided by the ICL in October.Gustavo Martínez, whose daughter is a tenant in Lanús Este, recounted his experience: “This change in the law is harmful; We must wait if the modifications will be successful. It is a topic that seems to have no end. My daughter pays $67,000 for a 2-bedroom apartment, but in December, to renovate, the owner demanded $270,000, an exorbitant increase for an old townhouse at the end of the hallway. If she leaves, they are unlikely to rent at that price again.”
Tenants with contracts that expire in October are forced to resort to extensions. In most cases, owners only accept 3- or 6-month extensions, rather than the annual extensions that were common a few months ago.
Pessimism and tax benefits
In the real estate field, the belief prevails that the changes in the law will not achieve their objective of stimulating supply and reducing values.Despite tax incentives for homeowners, prospects are low. The reform incorporated a last paragraph on article 9, in which it determined that income from the rental of up to two properties will be exempt from paying the monotax.
As for tax benefits, owners will not pay personal property taxes on properties that are put up for rent. Nor will they pay the tax on the check in the bank accounts intended to collect those contracts that are “duly registered” with the AFIP.
“The pain points of the law were partially modified and the tax improvements for owners will not be enough for them to re-enter their property into the permanent residential rental market. The supply will continue to be almost non-existent and the informality of the rental market will continue to be very high,” Mariano García Malbrán , president of the Chamber of Real Estate Services Companies, told Infobae.
In addition, the parties may deduct from the Income Tax the sum equivalent to 10% of the annual amount of the lease contract.
Verónica Pagola , CEO of Century 21 Argentina, believes that the modifications will not bring different results than those experienced since June 2020. “Based on previous experiences of state regulation that have tended to harm the tenant. Not only in this specific area, but also in others where this desire to balance negotiating positions, no matter how good the intention may be, ends up harming the weakest,” she concluded.
www.buysellba.com
