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Temporary rentals: Demand decreased by 25% - Infobae
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Alquileres temporarios: por qué a pesar de que se amplió la oferta de propiedades en CABA, disminuyó un 25% la demanda
La oferta de propiedades en distintos barrios porteños ahora supera las 20.000 unidades. A principios de marzo eran 15.000
www.infobae.com
November 02, 2023
Temporary rentals: Why even though the supply of properties in CABA expanded, demand decreased by 25%
The supply of properties in different Buenos Aires neighborhoods now exceeds 20,000 units. At the beginning of March there were 15,000
By José Luis Cieri
Good decoration is key to success, especially so that the apartments are rented quickly (Photo Courtesy: Alternativa Propiedades)
The growth in the supply of properties for temporary rentals in the city of Buenos Aires has been growing month by month. At this time there is a greater supply of properties and this generates greater competition in the market for agreements that are signed for 3 months. These days there are more than 20,000 properties on offer for this type of rental in different Buenos Aires neighborhoods, at the beginning of March it was 15,000.
This segment has been growing because a portion of owners who are dissatisfied with the Rental Law (enacted in June 2020 and recently reformed) do not want to be tied to three-year contracts and prefer to equip their properties to offer them for three-month agreements. duration.
There are also owners who migrate to the temporary format because the annual profitability in dollars ranges between 6% and 8% per year and doubles the traditional rental, which ranges from 3.5% per year in dollars.
And on the other hand, the demand for temporary rentals in CABA experienced a decrease of 25% in recent weeks. The main reason that justifies this fall was explained to Infobae by Darío Rizzo , CEO of Alternativa Propiedades: “The climate of uncertainty of elections with runoff included affected the foreign business public, above all, who, faced with doubts about the political future and direction "economically, they stopped intentions to settle in the country, until everything dissipates."
Once the new national government takes office, it may be that demand will resume the postponed activity “and orders for properties in temporary locations and short-term agreements will grow again,” Rizzo added.
Those who rent
Daniel Bryn , Real Estate expert and creator of Real Estate Monitor, highlighted to Infobae that this type of rental modality “is on the rise around the world and has become the favorite of young people who work remotely and do not want commitments with contracts. prolonged. “Look to live more flexibly and work from anywhere.” They also tend to be people who charge in dollars.The majority continues to favor 1-bedroom apartments and, according to Bryn, the neighborhoods with the most apartments on offer are the following:
Palermo: 7,097.
Recoleta: 3,018.
Generally, 1-bedroom apartments are rented, and some 2-bedroom apartments are rented.
San Nicolás: 1,344.
Belgrano: 1,079.
Retiro: 1,001.
Costs and term to renew
Because the market has a high supply, and added to the rise in the dollar, prices have decreased in recent months.Rizzo said that “today the average price of a temporary rental in the neighborhoods of the northern corridor (Recoleta, Palermo, Belgrano) is $180,000 or USD 625, with options ranging from USD 350 to USD 400 per month.”
Regarding the terms and renewals, he clarified that contracts are made that are known as "short term", which range from one month to three months, with the possibility of renewing them for up to one year by presenting a justification of a specific purpose that Describe the reason why it must be renewed, although it can never exceed one year. “The average term of the rentals we do in the real estate agency is 4 and a half months,” he explained.
For example, in Saavedra, 1-bedroom options can be found from USD 400 per month, while in neighborhoods like Núñez, the average is USD 600 per month. In Palermo, the rent for 1-bedroom is around USD 750 and in Puerto Madero the figure rises to USD 1,500 per month for 1-bedroom.
Cintia Azpiazu , from Gustavo De Simone Soluciones Inmobiliarias, told Infobae that “one aspect to highlight is that the majority of owners set their values in dollars, which means that adjustments and renewals are not usually very noticeable, since they are based in the inflation of the same currency. In long-term contracts, adjustments are generally rare.”
Another method of temporary, vacation or tourist rental operates through platforms such as Airbnb or Booking, whose regulation was addressed by Congress, aligning with measures adopted in other cities and countries.
How temporary contracts are made
Regarding the formalization of these temporary contracts, it is common for reservations to be made online or by phone, eliminating the need to travel, with a payment of $70.Entry requirements include the first month's rent, one month's deposit and a commission of up to 20% of the contract, depending on the length of the rental.
In general, apartments must have everything available for daily life. And whoever agrees to a temporary contract can enter to live in the home as soon as they sign the agreement.
Rizzo clarified: “It is necessary to be up to date with Veraz and demonstrate income. If the duration exceeds 3 months, a special agreement is required in which the purpose must be justified. In the case of foreigners, the reference to Veraz is not applicable, but they must provide a reason for their residence in the country.”
Temporary rentals include in their price the cost of expenses, water, electricity and gas (both with a spending limit), cable, Internet and taxes.
“There are owners who come to an agreement with the tenant and make three contracts for four months. But in this case they are outside the real estate agencies, they are agreements between the parties,” Azpiazu said.
What the departments should be like
The apartments are delivered furnished and equipped, do not require guarantees and are available immediately.When offering a home in this format, it is essential to furnish it appropriately.
The temporary and dollar apartments are delivered equipped and furnished so that those who rent them can sign agreements for three months.
Bryn explained: “An apartment is not only valued by its location or its condition, but also by its furnishings and decoration. It is essential that the furniture adapts to the style of the apartment and is functional, resistant and washable. Another common mistake is not providing enough beds. Sometimes, in two-bedroom apartments, one of them is left without beds and converted into a work space.”
In an apartment with three rooms, comfortable and functional beds for four people must be guaranteed. It is essential to avoid sofa beds in the rooms.
Additionally, they must ensure that the heating and air conditioning are working properly and provide hot water and a high-quality Wi-Fi signal. Finally, a minibar and kitchen elements, such as a kitchenette with a microwave, are usually included.
Experts recommend that the apartment be totally electric to avoid possible risks with gas.
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