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The new rentals: The 11 changes that you must pay close attention to before signing a contract - Infobae
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Los nuevos alquileres: los 11 cambios a los que hay que prestarles mucha atención antes de firmar un contrato
En este contexto de cambios sustanciales en los contratos de alquiler en Argentina, es fundamental que propietarios e inquilinos comprendan aspectos esenciales antes de formalizar un acuerdo
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In this context of substantial changes in rental contracts in Argentina, it is essential that owners and tenants understand essential aspects before formalizing an agreement
By José Luis Cieri
After the repeal of the Rental Law, supply is expected to grow and little by little the prices that have risen sharply for 20 months will balance (Illustrative image Infobae)
The Rental Law, passed in 2020 and recently reformed in Congress, is no longer valid as of today for new long-term housing contracts . Following the Decree of Necessity and Urgency (DNU) issued by the government of Javier Milei, the new provision for the formalization of agreements between owners and tenants will be implemented.
From now on, housing rental contracts will return to the provisions established in the Civil and Commercial Code, in line with the practice prior to the law.
It is relevant to remember that the Civil Code, written by Dalmacio Vélez Sarsfield and in force from 1869 to 2015 (when it was reformed), established that “The conventions made in contracts form for the parties a rule to which they must submit as the law. herself.” This principle, of a liberal nature, is consistent with the libertarian line followed by the government that took office on December 10.
Below is a practical guide on the new agreements that will be freely entered into between the parties. It is important to note that the DNU must be evaluated by the Permanent Bicameral Commission for Legislative Procedure of Congress.
The Bicameral Commission has a period of 10 business days to issue an opinion 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 a decision within that period, the Chambers are obliged to address the treatment of the DNU on their own initiative.
Both the Senate and the Chamber of Deputies have the exclusive power to accept or reject the DNU, without the possibility of introducing amendments, modifications or additions. The decision is made by an absolute majority of those present, that is, half plus one. In the event that none of the Chambers submit it to treatment, the DNU will automatically remain in force.
What changed
Regarding the modifications, the measure implies that contracts entered into from now on will be governed by the provisions of the National Civil and Commercial Code. Below are details that owners and tenants should know to understand what the agreements made freely between the parties will be like.1 - Term: There is no minimum legal term for any type of rental contract (housing or other destinations). The term will be the one agreed upon by the parties. If the contracting parties have omitted to set a term in the contract, then its validity will be 2 years for residential locations and 3 years for other destinations.
2 - Price: There is absolute freedom to determine the price, payment currency and rental adjustments. The use of indices is permitted, and the parties can agree on adjustments as frequently as they wish. Rentals can be agreed in foreign currency.
If the chosen index stops being published during the term of the contract, an official index with similar characteristics published by the National Institute of Statistics and Censuses will be used if the price is set in national currency, or one that fulfills the same functions in the country that issue the agreed payment currency,” the document clarifies.
The rules for signing new contracts will undergo detailed modifications in the DNU (Photo: Getty)
3 - Early termination: “The tenant may terminate the contract early at any time. It is no longer necessary to wait for the first 6 months of the location to pass. A single compensation is established in favor of the landlord, which is equivalent to 10% of the total amount remaining to be paid under the contract,” Enrique Abatti (h.) of the Abatti & Rocca law firm and director of the Chamber of Owners of the property told Infobae. Argentinian republic
4 - Frequency of payment: The parties cannot agree on a frequency less than monthly. It is accepted that in residential locations the parties agree to payments for several periods together, which was previously prohibited.
5 - Bond, guarantee: Total freedom was granted to determine the guarantee and sureties of the contracts, as well as the currency of the guarantee deposits, and the parties must agree on the restitution period thereof.
6 - Derogations or modifications are made: In some articles that mean that the contracts entered into by the parties must be drafted in greater detail to cover certain rights and obligations that were previously contemplated in the regulations, and must now be agreed upon by the parties (e.g. improvements, loss of luminosity of the property, among others).
7 - There is no need to declare contracts in AFIP.
8 - The tenant can no longer compensate rents with expenses and debts that are the responsibility of the landlord
9 - Mandatory pre-judicial mediation is no longer required to initiate an eviction process.
10 - Housing rentals will be allowed to be published and signed in foreign currency, and judges will not be able to convert the price to pesos, unless the agreement expressly establishes otherwise.
11 - The tenant has the option to terminate the contract at any time, paying 10% of the future rent balance, calculated from the termination notice until the agreed termination date. Additionally, you can terminate the lease if the landlord fails to keep the unit in suitable condition for use, unless the damage was caused directly or indirectly by the tenant. The tenant can also terminate the contract if the owner breaches the eviction guarantee or the redhibitory defects guarantee.
Opinions
Representatives of real estate entities affirm that, after years of complaints, they were finally heard. Since the implementation of the law passed in 2020, their position has always been one of constant rejection.
Specialists maintain that little by little the supply of properties for long-term residential rental will grow again after more than two years of falling proposals
Diego Frangella, president of the Buenos Aires Real Estate Professional Association, said: “First of all, we agree with the repeal. The sector was attended to with regard to the parties' agreement, as well as the return to 24 months in housing contracts. “We are analyzing the entire DNU in depth to responsibly issue an opinion on aspects related to the profession and its implications.”
Experts maintain that supply will begin to increase systematically, thus driving growth. Currently, at the national level, there is a decrease of 50% in all places, and especially in the city of Buenos Aires, a drop of almost 80% year-on-year.
Mirta Líbera , president of the Real Estate Chamber of the province of Buenos Aires, concluded: “We understand that there will be more competition and gradually there will be a greater supply. Agreements may be established between the parties, thus allowing an increase in units available for rent and more choice options. The freedom in the contracts will be reflected in quarterly, four-monthly or semi-annual adjustments, all subject to how the parties reach consensus, with the intermediation of the real estate companies.”
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