Apartment Rental This is what needs to be clarified in rental contracts to avoid problems - La Nacion Propiedades

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This is what needs to be clarified in rental contracts to avoid problems - La Nacion Propiedades




Source:

Esto es lo que hay que aclarar en los contratos de alquiler para evitar problemas

La derogación de la ley de alquileres dejó vacíos que los inquilinos y los propietarios tienen que acordar cuando firman el contrato

www.lanacion.com.ar

March 20, 2025



The repeal of the rental law left loopholes that tenants and landlords have to agree to when signing the contract.

This is what needs to be clarified in rental contracts to avoid problems.Santiago Filipuzzi

Following the repeal of the rental law in December 2023, through President Javier Milei 's Decree of Necessity and Urgency (DNU) , the game was opened for tenants and landlords to define among themselves the way in which contracts are agreed upon.



In this sense, there are several points that must be taken into account to avoid problems and must be discussed, agreed upon and put in writing before signing a rental contract .

There are several points that must be taken into account to avoid problems and must be discussed, agreed upon and put in writing before signing a rental contract.CrizzyStudio - Shutterstock

1. How the contract will be paid​

When signing a contract, there are key points to consider: currency, adjustment frequency, indexation, and advance payments.

In what currency​

Rents may be set in legal tender or foreign currency, as agreed upon by the parties. This means that they may be signed in pesos, dollars, or any other currency agreed upon. The important thing is that the agreement must be written into the contract . The tenant may not demand payment in a currency other than that established in the agreement.

What indexing will be done and how frequently will the adjustment be?​

Instead of using the Lease Contract Index (ICL) used by contracts signed under the law, or the Casa Propia index (which applied to the few contracts signed between October 18 and December 2023), tenants and landlords will be able to freely agree on which index to link the contract value to. For example, they can index the contract value to inflation, wage growth, the wholesale price index, the price of gasoline, a combination of indexes , etc.



Regarding the frequency of the adjustment, the parties may agree on how often to update the rental value.

2. Duration of the contract​

For how long​

The term of the rental contracts will be the one established by the parties and, if not clarified, will be two years .

It is worth noting that a report from the Buenos Aires Real Estate Association from a few months ago reveals that 90% of the rental agreements being signed are in pesos, despite the fact that they are allowed to be agreed in foreign currency, and are closed with quarterly adjustments , for 24 months and using the CPI indicator , despite the fact that some are still being agreed under the ICL.

The term of the rental contracts will be the one established by the parties and, if they do not clarify it, it will be two years.Santiago Cichero/AFV

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Who, how and when can terminate the contract​

When the rental law was in force, the tenant could terminate the contract without giving cause after the six-month term of the contract had elapsed. In that case, they had to compensate the landlord with the equivalent of one and a half months' rent. If they decided to terminate the contract after a year, the compensation was less, equivalent to one month's rent. In both cases, the tenant had to give at least 30 days' notice of their intention to terminate.

However, today the situation is shifting toward almost absolute freedom: the parties can agree on the moment at which the contract can be terminated, the time in advance in which such a decision must be notified, and the type of compensation that will apply.



It's important to put this in writing, since, if not specified in the contract, the DNU establishes that the tenant may terminate the contract at any time, without prior notice. In that case, they must compensate the landlord by paying 10% of the future rental fee, calculated from the date of notice of termination to the date the contract ends . For example, in the case of a one-year contract, if the tenant notifies the landlord that they are leaving after six months, they would have to pay compensation equal to 10% of what the landlord would have received for the remaining six months at the current rent on the day they return the property.

The DNU also allows the owner to terminate the rental contract, unless otherwise stated.

3. Guarantees and deposits​

Define payment and deposit return​

There are no longer any limits on the security deposit amount. The repealed rental law stipulated that tenants must provide a fixed deposit equivalent to one month's rent. Now, it's up to the landlord and tenant to determine that amount.

What will be taken as collateral​

The Rental Law established that the tenant must offer the landlord two types of security , and the landlord must choose only one. For example, these could be a landlord's guarantee, a pay stub, or a surety bond. Today, with the repeal of the Rental Law, this is subject to free agreement between the parties.


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