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Rentals: the increased supply delays the signing of contracts in CABA and a home takes more than 30 days to be occupied - Infobae
Source:
www.infobae.com
December 05, 2024
The increased competition between available properties after the DNU expanded the options for tenants and slowed down the time to rent a property. What should landlords and tenants consider when negotiating prices and conditions?
By Jose Luis Cieri
The greater supply means that tenants take longer to rent a property and, with more offers, the values tend to drop if the property remains unrented for more than a month (Illustrative Image Infobae)
The entry into force of DNU 70/23 marked a significant change in the rental market in the city of Buenos Aires as it reconfigured the relationship between supply and demand. This decree, which repealed the Rental Law, encouraged a sustained increase in the supply of properties.
Many owners who recovered their properties after the expiration of contracts or extensions decided to use them again for traditional leasing, but with free agreements and maximum terms of two years, adapting to the new legal framework.
According to Soledad Balayan , market analyst and Maure Inmobiliaria, the implementation of the DNU had an immediate and positive impact on the rental supply in CABA, with a 188% year-on-year increase in available properties to date. “The jump in supply was abrupt since January, something that we saw reflected in the sustained increase in traditional rental requests, a segment that had practically disappeared,” she said.
This increase was directly linked to the growth in appraisal requests for rental transactions, which demonstrated a change in the attitude of property owners towards the publication of properties. Balayan explained that the DNU made it possible to “eliminate previous behaviours of reluctance, such as those observed in February 2021, when, despite the high seasonal demand, supply remained absent.”
Currently, due to the competition between 16,000 properties available in the different neighborhoods of Buenos Aires , a home takes more than a month to be rented. In addition, the number of buying and selling operations has increased, driven by mortgage loans and money laundering, according to Infobae . This situation has led families with savings power to try to buy instead of continuing to rent.
Source: Maure Real Estate
According to Alberto Héctor Loyarte , a licensed real estate broker, the increase in available properties has allowed the market to self-regulate, reflected in a drop in values and longer times to complete rentals. “If a property is not in good condition or out of price, it can take more than 45 days to be rented. With more options, tenants have more room to choose and negotiate,” he explained.
This decline is related to the expansion of supply, which allowed owners to re-list properties under more competitive conditions. This dynamic generated benefits for both tenants and owners, who were able to renegotiate contracts under the new market rules.
“The increased supply directly affected contracts adjusted under the previous law. Hundreds of tenants terminated these agreements, since the prices adjusted by the Rental Contract Index (ICL) exceeded the new options available. For owners, this change represented the opportunity to make more flexible contracts, with conditions and terms adapted to their needs, achieving greater rotation and dynamism in the market,” added Balayan.
Competition between properties has reached unprecedented levels. There is currently more supply than demand, which particularly affects the most expensive rental segments.
Source: Zonaprop
“In these cases, many tenants choose to apply for UVA loans instead of renting, thus seeking more affordable long-term alternatives. This reality forces owners to adjust prices and offer differentiated proposals to attract the attention of interested parties,” Balayan added.
Those interested in renting a home must meet specific requirements, such as demonstrable net income equal to three times the rental value plus expenses.
“Contracts usually have a maximum term of one or two years and in most cases the values are expressed in pesos, except in premium areas such as Puerto Madero or certain gated communities, but this is in Greater Buenos Aires,” Loyarte clarified.
Another fundamental aspect is the guarantee. In CABA, it is usual to present a landlord with verifiable income, although in some situations, surety bonds or guarantees from the province of Buenos Aires are accepted. A security deposit is also required, which is generally equivalent to one month's rent, although it can vary depending on what is agreed by the parties.
“The flexibility allowed by the DNU extends to contract adjustments, which in most cases are agreed upon on a quarterly or half-yearly basis, under the Consumer Price Index (CPI) of the Indec or the Lease Contract Index (ICL) of the BCRA. This legal framework promotes agreements adapted to the needs of both parties, which can be modified in writing throughout the contract if the conditions require it,” concluded Loyarte.
www.buysellba.com
Source:
Alquileres: la mayor oferta retrasa la firma de contratos en CABA y una vivienda demora más de 30 días en ocuparse
La creciente competencia entre propiedades disponibles post DNU amplió las opciones para los inquilinos y ralentizó los tiempos para alquilar una propiedad. Qué deben considerar propietarios e inquilinos para negociar precios y condiciones
www.infobae.com
December 05, 2024
The increased competition between available properties after the DNU expanded the options for tenants and slowed down the time to rent a property. What should landlords and tenants consider when negotiating prices and conditions?
By Jose Luis Cieri
The greater supply means that tenants take longer to rent a property and, with more offers, the values tend to drop if the property remains unrented for more than a month (Illustrative Image Infobae)
The entry into force of DNU 70/23 marked a significant change in the rental market in the city of Buenos Aires as it reconfigured the relationship between supply and demand. This decree, which repealed the Rental Law, encouraged a sustained increase in the supply of properties.
Many owners who recovered their properties after the expiration of contracts or extensions decided to use them again for traditional leasing, but with free agreements and maximum terms of two years, adapting to the new legal framework.
According to Soledad Balayan , market analyst and Maure Inmobiliaria, the implementation of the DNU had an immediate and positive impact on the rental supply in CABA, with a 188% year-on-year increase in available properties to date. “The jump in supply was abrupt since January, something that we saw reflected in the sustained increase in traditional rental requests, a segment that had practically disappeared,” she said.
This increase was directly linked to the growth in appraisal requests for rental transactions, which demonstrated a change in the attitude of property owners towards the publication of properties. Balayan explained that the DNU made it possible to “eliminate previous behaviours of reluctance, such as those observed in February 2021, when, despite the high seasonal demand, supply remained absent.”
Currently, due to the competition between 16,000 properties available in the different neighborhoods of Buenos Aires , a home takes more than a month to be rented. In addition, the number of buying and selling operations has increased, driven by mortgage loans and money laundering, according to Infobae . This situation has led families with savings power to try to buy instead of continuing to rent.
Source: Maure Real Estate
According to Alberto Héctor Loyarte , a licensed real estate broker, the increase in available properties has allowed the market to self-regulate, reflected in a drop in values and longer times to complete rentals. “If a property is not in good condition or out of price, it can take more than 45 days to be rented. With more options, tenants have more room to choose and negotiate,” he explained.
Values on the decline
The latest Zonaprop report (see infographic) shows a drop in initial rental listing prices in real terms, adjusted for inflation.This decline is related to the expansion of supply, which allowed owners to re-list properties under more competitive conditions. This dynamic generated benefits for both tenants and owners, who were able to renegotiate contracts under the new market rules.
“The increased supply directly affected contracts adjusted under the previous law. Hundreds of tenants terminated these agreements, since the prices adjusted by the Rental Contract Index (ICL) exceeded the new options available. For owners, this change represented the opportunity to make more flexible contracts, with conditions and terms adapted to their needs, achieving greater rotation and dynamism in the market,” added Balayan.
Competition between properties has reached unprecedented levels. There is currently more supply than demand, which particularly affects the most expensive rental segments.
Source: Zonaprop
“In these cases, many tenants choose to apply for UVA loans instead of renting, thus seeking more affordable long-term alternatives. This reality forces owners to adjust prices and offer differentiated proposals to attract the attention of interested parties,” Balayan added.
What to pay attention to
The possibility of establishing contracts with more diverse terms, currencies and conditions, thanks to the DNU, transformed the market.Those interested in renting a home must meet specific requirements, such as demonstrable net income equal to three times the rental value plus expenses.
“Contracts usually have a maximum term of one or two years and in most cases the values are expressed in pesos, except in premium areas such as Puerto Madero or certain gated communities, but this is in Greater Buenos Aires,” Loyarte clarified.
Another fundamental aspect is the guarantee. In CABA, it is usual to present a landlord with verifiable income, although in some situations, surety bonds or guarantees from the province of Buenos Aires are accepted. A security deposit is also required, which is generally equivalent to one month's rent, although it can vary depending on what is agreed by the parties.
“The flexibility allowed by the DNU extends to contract adjustments, which in most cases are agreed upon on a quarterly or half-yearly basis, under the Consumer Price Index (CPI) of the Indec or the Lease Contract Index (ICL) of the BCRA. This legal framework promotes agreements adapted to the needs of both parties, which can be modified in writing throughout the contract if the conditions require it,” concluded Loyarte.
www.buysellba.com
