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Rentals: Real estate agencies register an increase in inquiries after the announcement of the repeal of the law - Infobae
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Alquileres: las inmobiliarias registran un aumento en las consultas tras el anuncio de la derogación de la ley
En la ciudad de Buenos Aires las inmobiliarias reciben mayor cantidad de consultas de los dueños sobre los nuevos contratos bajo el Código Civil y Comercial
www.infobae.com
December 28, 2023
In the city of Buenos Aires, real estate agencies receive a greater number of queries from owners about new contracts under the Civil and Commercial Code
By José Luis Cieri
After the Rental Law was repealed, real estate companies received inquiries from owners and tenants to know how to continue, what is convenient and what is not (Illustrative image Infobae)
A week after the repeal of the Rental Law in the extensive Decree of Necessity and Urgency (DNU) proposed by President Javier Milei, real estate agencies are registering an increase in activity. Owners and tenants show concern when seeking information about the new measures and the configuration of future contracts under the Civil and Commercial Code.
The free determination of the conditions of the lease contracts will allow real estate agents to work on bringing the parties together to finalize future agreements.
Vanesa Ibarra, from Salguero Propiedades, said: “This week we observed an increase in owners who consult us about the steps to follow, evaluating whether it is convenient to wait or enter the market. "There is a clear intention to put their properties back up for rent, with contracts of up to two years in duration."
The repeal of the Rental Law is now in the hands of the Permanent Bicameral Commission for Legislative Procedure of Congress, in charge of evaluating the DNU presented by President Javier Milei. The commission has a period of 10 business days to issue a ruling on the validity of the decree and send it to the plenary session of both chambers for consideration. In the event that the Commission does not issue an opinion within that period, the Chambers must address the treatment of the DNU independently.
Alejandro Bennazar , former president of the Argentine Real Estate Chamber and current global president of the Institute of Real Estate Business, Innovation and Technology (Rebiti), reported that “if the DNU remains firm, a new stage will begin next week. Associate auctioneers receive a significant increase in inquiries, and, in addition, the chamber launched a course on how to carry out new contracts through the Real Estate Chamber Training Institute, with a registration of 2,000 people in the last two days.
Crucial changes
Román Paikin, from San Román Properties, highlighted the benefits for both owners and tenants, highlighting that the supply would normalize in the medium term. “Tenants will have more properties to choose from and the same competition will regulate the value. Meanwhile, the owner who seeks an excessive price will be left out of the market.”Experts maintain that although inflation will not slow down quickly and values will not stop rising, the increases will be more moderate than they would be if the previous law remained in force.
“This dynamic is due to the fact that, until now, the adjustments did not keep pace with inflation, which led the owners to avoid diluting the fee by raising the initial cost of the contract. Now, they would choose not to anticipate price increases so much and, instead, they would apply indexation to the contract so that it adjusts to the pace of inflation over time,” Bennazar said.
For the new contracts, the crucial changes are as follows:
Elimination of minimum contract term
The freedom of being able to request more months of deposit than was requested before.
Being able to sign contracts in any currency.
The impossibility of a judge determining that a contract agreed in foreign currency be paid in Argentine pesos.
Contracts do not have to be registered with the AFIP.
What is expected and values
These days, the flow of owners interested in knowing each point of the DNU to decide if they will rent their properties has grown.
After the repeal of the Rental Law, it is expected that the market will gradually tend to normalize the supply that is currently very scarce (Photo: Getty)
“On the other hand, tenants feel unprotected and feel that all these changes are going to harm them since at a certain point everything is in the hands of the conditions that the owner chooses to set. But they must understand that we real estate agents are here to mediate and generate balanced agreements,” said Ibarra.
The values had been rising and after last week's devaluation they rose 35% more than until the end of November. Today a 3-room apartment in Caballito, measuring 80 square meters, is rented for $600,000 per month.
“In Villa del Parque, Paternal and surrounding areas there are very few options, a studio apartment ranges between $160,000 and $300,000 per month, while a two-bedroom apartment varies between $220,000 and $400,000 per month,” Paikin explained.
In those neighborhoods the 3 rooms are almost not available, but the few that exist exceed $280,000 plus expenses of more than $40,000 per month.
Get advice
Tenant groups rejected the repeal and even initiated legal action against the DNU . But other organizations argue that the law failed to achieve its desired objective and aggravated the shortage of housing in local currency, generating price increases that are inaccessible to Argentine tenants.Ricardo Botana, from the Argentine Tenants Union, indicated that “although the previous regulations had valid tools, such as the duration of the contract of three years or the possibility of withdrawing the deposit equivalent to one month's update, ultimately it was harmful. Despite recent reforms, the objective did not prosper.”
They are receiving inquiries and carefully analyzing the regulatory issue to provide advice.
“We consider that, even if they lose a year of their contract, they will have greater certainty about the costs, and since indexation is prohibited, tenants will know the amount they will pay in two years. The supply would gradually increase again, which will probably have an impact so that prices do not rise so much from the starting point,” Botana concluded.
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