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Short-term rental boom: how are they different from vacation rental properties - Infobae
Source:
www.infobae.com
September 07, 2023
By José Luis Cieri
The bill that seeks to regulate the sector advances in the Senate, but generates controversy. Experts question its scope and effectiveness, pointing out possible consequences for owners, real estate agencies and users.
In Argentina, the debate on access to housing and the regulation of temporary rentals advances in parallel with similar trends in other parts of the world where a shortage of traditional rental properties prevails and prices continue to rise strongly month after month (especially traditional locations) and the Rental Law passed in 2020 is also under review in the Senate.
However, it is crucial to distinguish between different types of temporary rentals: short-term and vacation or tourist rentals.
Darío Rizzo, CEO of Alternativa Propiedades, told Infobae that the bill currently in the Senate seeks to regulate temporary rentals for tourist purposes. The project covers rentals of up to three months, which does not align with the specific needs of the market. “The majority of tourists who come to Buenos Aires rent for less than 30 days. On the other hand, 40% of those who arrive to work, study or receive medical treatments do so for periods of between one month and three months, and the remaining 60% for periods of between three months and one year,” he said.
Rizzo added that the project could have negative consequences for businesses and homeowners if all the particularities of the market are not considered. “The project requires the portals to report how many times the home is rented per year and to have a registration number published on the page,” he explained. “This regulation will seek to ensure that unit owners pay 21% VAT of the published price, an obligation that has already existed since 2017.”
Experts in the sector have strong opinions about the bill that is in the national Senate that seeks to regulate temporary rentals in Argentina, as reported by Infobae .
From the segment they argue that it is key to distinguish each of the segments well before dictating laws.
In the United States, the temporary rental market is divided into three categories: vacation rentals (from 1 to 30 nights), short-term rentals (from 31 nights to 1 year), and traditional rentals for housing (from 1 year onwards).
For a property to be used in the temporary rental format, it must be equipped and furnished, otherwise it does not apply as such.
In Argentina, the current law only contemplates vacation contracts of 1 to 120 nights and traditional three-year contracts. This lack of flexibility creates confusion and does not adapt to market needs.
The bill that is being studied seeks to regulate, and expressly says so, temporary rentals for tourist purposes. However, in its content it refers to rentals of up to 3 months in duration. “Do tourists who come to Buenos Aires rent for two or three months? No. Almost all rent for less than 30 days. On the other hand, if we look at the short-term rental market, 40% of those who come to work, study or undergo medical treatment do so for periods of between one month and three months, and the remaining 60% for periods of between three months and a year,” Rizzo added.
The project expressly details that it aims at temporary tourist rental, but says that the location must be rented between one night and 90 days. If the intention is to reach only the tourist segment then the period to be covered should be a maximum of one month.
“Neighborhoods like Palermo, Recoleta, Colegiales and San Telmo are poles of attraction for both residents and tourists,” said Kries.
In the real estate sector there is concern that the new regulations will reduce the supply of housing and affect the construction of new works. “If the regulations advance, it could complicate the confirmation of new works,” said a builder.
www.buysellba.com
Source:
Boom de alquileres temporarios: ¿en qué se diferencian de las propiedades que se rentan para las vacaciones?
El proyecto de ley que busca regular el sector avanza en el Senado, pero genera controversia. Expertos cuestionan su alcance y efectividad, señalando posibles consecuencias para propietarios, inmobiliarias y usuarios
www.infobae.com
September 07, 2023
By José Luis Cieri
The bill that seeks to regulate the sector advances in the Senate, but generates controversy. Experts question its scope and effectiveness, pointing out possible consequences for owners, real estate agencies and users.
In Argentina, the debate on access to housing and the regulation of temporary rentals advances in parallel with similar trends in other parts of the world where a shortage of traditional rental properties prevails and prices continue to rise strongly month after month (especially traditional locations) and the Rental Law passed in 2020 is also under review in the Senate.
However, it is crucial to distinguish between different types of temporary rentals: short-term and vacation or tourist rentals.
Darío Rizzo, CEO of Alternativa Propiedades, told Infobae that the bill currently in the Senate seeks to regulate temporary rentals for tourist purposes. The project covers rentals of up to three months, which does not align with the specific needs of the market. “The majority of tourists who come to Buenos Aires rent for less than 30 days. On the other hand, 40% of those who arrive to work, study or receive medical treatments do so for periods of between one month and three months, and the remaining 60% for periods of between three months and one year,” he said.
Rizzo added that the project could have negative consequences for businesses and homeowners if all the particularities of the market are not considered. “The project requires the portals to report how many times the home is rented per year and to have a registration number published on the page,” he explained. “This regulation will seek to ensure that unit owners pay 21% VAT of the published price, an obligation that has already existed since 2017.”
Experts in the sector have strong opinions about the bill that is in the national Senate that seeks to regulate temporary rentals in Argentina, as reported by Infobae .
Comparison
From the segment they argue that it is key to distinguish each of the segments well before dictating laws.
In the United States, the temporary rental market is divided into three categories: vacation rentals (from 1 to 30 nights), short-term rentals (from 31 nights to 1 year), and traditional rentals for housing (from 1 year onwards).
For a property to be used in the temporary rental format, it must be equipped and furnished, otherwise it does not apply as such.
In Argentina, the current law only contemplates vacation contracts of 1 to 120 nights and traditional three-year contracts. This lack of flexibility creates confusion and does not adapt to market needs.
The bill that is being studied seeks to regulate, and expressly says so, temporary rentals for tourist purposes. However, in its content it refers to rentals of up to 3 months in duration. “Do tourists who come to Buenos Aires rent for two or three months? No. Almost all rent for less than 30 days. On the other hand, if we look at the short-term rental market, 40% of those who come to work, study or undergo medical treatment do so for periods of between one month and three months, and the remaining 60% for periods of between three months and a year,” Rizzo added.
The project expressly details that it aims at temporary tourist rental, but says that the location must be rented between one night and 90 days. If the intention is to reach only the tourist segment then the period to be covered should be a maximum of one month.
Construction
In the midst of a changing economic landscape, investment in studio apartments for temporary rentals is on the rise. María Inés Kries, commercial manager of Newland, indicated to Infobae that this trend responds to financial strategies in a context of inflation and economic volatility.“Neighborhoods like Palermo, Recoleta, Colegiales and San Telmo are poles of attraction for both residents and tourists,” said Kries.
In the real estate sector there is concern that the new regulations will reduce the supply of housing and affect the construction of new works. “If the regulations advance, it could complicate the confirmation of new works,” said a builder.
www.buysellba.com
