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Rentals: After the DNU repealed the controversial law, the supply of properties registered a jump in record time - Infobae
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Alquileres: luego de que el DNU derogara la polémica ley, la oferta de propiedades registro un salto en tiempo récord
En pocos días en algunos portales subió la cantidad de propuestas sumando alquileres tradicionales y temporarios. Qué aspectos clave hay que tener en cuenta al momento de formalizar un nuevo contrato
www.infobae.com
January 12, 2024
On portals in the sector, in just a few days, the number of proposals rose consistently. What key aspects must be taken into account when formalizing a new contract
By José Luis Cieri
Little by little, the owners are returning to lease their properties. The values are still high (Illustrative image Infobae)
After the implementation of the Decree of Necessity and Urgency (DNU) that repealed the Rental Law, the supply of properties in the city of Buenos Aires experienced an increase of 9% month-on-month. This rapid increase intensified competition between owners, giving rise to proposals even in neighborhoods like Santa Rita or Paternal, which lacked options in pesos just 40 days ago.
On specialized platforms, such as Zonaprop, the housing supply, which includes both traditional and temporary rentals, reached a range of 7,200 units. This increase, comparing December with so far in January, is notable and stands out for its record speed. Argenprop presents a similar figure, while in Mercado Libre the offer reaches 7,700 units, including apartments in both pesos and dollars in CABA.
Leandro Molina , country manager of Grupo QuintoAndar for Argentina and Peru, told Infobae that “in the last two weeks at Zonaprop we have seen a 9% increase in the supply of rental advertisements in CABA. Although it is too recent to know if this is due to the repeal of the Rental Law, December was the month with the most active rental notices in the city throughout the year. Compared to the minimum offer registered in February 2023, we are currently 43% above that figure (an estimated 4,100 properties between proposals in pesos and dollars at that time).”
The advancement of the offer could find support in the flexibility granted to the parties to apply indexes and adjustment periods, as well as the freedom to choose the contract period they prefer.
Alberto Loyarte , Real Estate expert and real estate broker, highlighted that “after the application of the repeal carried out by the DNU, the increase in queries from owners regarding rentals and the new conditions grew. This was verified in the main urban centers.”
How contracts are being made
New contracts, in general terms, tend to be established with a duration of two years , although some proposals contemplate shorter terms.Regarding the adjustment mechanisms agreed upon between the parties, the use of the Lease Contract Index (ICL) that regulates the Central Bank prevails, with quarterly or semiannual adjustments, as well as the option of being based on consumer prices (CPI), with similar deadlines for adjustment.
“Dollarized transactions are less frequent, concentrating mainly in the northern areas of Greater Buenos Aires and in some private neighborhoods,” Loyarte expanded.
Enrique Abatti , president of the Chamber of Property Owners of the Argentine Republic, predicts that the most significant increase in supply will materialize approximately in 6 or 7 months. “For this reason, landlords have the chance to get better prices today, before competition increases and tenants are in a stronger position to demand more favorable terms in the future,” he said.
To keep in mind
There are several key points of the newly implemented legislation derived from DNU 70 of 2023.When signing a rental agreement, it is crucial to focus on the duration and amount. It is advisable to ensure the following:
- The duration of the contract and whether it allows renewal.
- Early cancellation conditions.
- Initial rental amount, payment conditions and possible adjustments.
- Terms, deadline and late payment fees.
In Palermo, the rent for a two-bedroom averages 491,000 per month
These aspects are essential to establish clarity and avoid possible complications during the contract period.
Contract Term : Now, the term of housing rental contracts is agreed upon by the parties without a legal minimum. If the term is not specified in the contract, it will be two years, instead of three as it was under the repealed regulations.
Requirements: the following are maintained to sign a contract; The tenant in CABA does not pay a real estate commission and in the province of Buenos Aires he pays 2% of the contract value.
The owner pays fees in CABA of 4.15% of the total contract; and 2% in the province of Buenos Aires (4% of the total contract, to be paid 2% by each of the parties or one of them will assume the total. Provincial Law 14,085).
Guarantees from natural persons can be presented as up to the previous law. If there are two guarantors with financial solvency, without the need to resort to surety insurance or private guarantee, no additional expenses are incurred. However, if surety insurance is chosen, this cost for the tenant is equivalent to 5% of the contract value.
Areas and prices
Despite the diversity in contracts, rental costs remain high levels, even higher than those recorded before the repeal of the law. Although a decrease in the starting point is not observed, it is argued that rents are adapting in accordance with inflation rates.During 2023, the values closed with a record year-on-year increase of 260% and a month-on-month increase of 18.6% in another unprecedented increase in CABA.
In Camarones at 1100, in Paternal, a 28 m2 studio apartment costs $230,000 per month. A two-room apartment on Luis María Campos 300, 40 m2, in Palermo, has a price of $430,000; and a three-room apartment on Matheu at 1700, 55 m2, and furnished, $490,000 per month.
Román Paikin , from San Román Properties, assured that the relaxation of contracting conditions when offering a property for housing purposes caused the retained units to slowly begin to appear.
By having the ability to freely agree on terms, rates, adjustment frequency and payment currency, owners are overcoming the fear of rent depreciation. “That represents a contrast to what happened in the last 3 and a half years that ended with the destruction of the rental supply. In addition, it is no longer necessary to start with such a high ticket to compensate for the loss of purchasing power of the value due to the lack of adjustment,” Paikin added.
Concerned tenants
Tenant groups expressed their disagreement with the repeal because the DNU allows payment in any currency, even if it is not legal tender in the country, something that was previously prohibited.They argue that the country already experienced a similar situation after the convertibility era, when contracts were dollarized. This process proved difficult to reverse and culminated in the crisis of December 2001, as the tenants were unable to maintain or fulfill the contractual conditions.
Maximiliano Vittar Lucero, from the National Tenant Movement, pointed out that “what would have to be improved so that tenants pay less when making a contract is for the supply to grow. The freedom of the market is not going to regulate the price without the State being present. Especially when it is a logic in which the offer only has a commercial vision or, failing that, rests only on the backs of the private sector."
They believe that in order for there to be lower prices, policies must be drawn up from the State so that they complement the regulations.
“Such as the regulation of temporary rentals. Encourage the construction of rental housing and ensure that prices are reasonable. Also provide tax benefits for the construction of rental homes and establish parameters that regulate idle housing,” concluded Vittar Lucero.
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