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To start renting in CABA and Province, more than two million pesos are needed: what to pay attention to - Infobae
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www.infobae.com
January 13, 2025
Differences between districts, along with advances, deposits and other initial expenses, require exploring options and seeking advice to avoid problems in agreements between tenants and owners.
By Jose Luis Cieri
Shorter 24-month contracts reduce some initial costs, but do not eliminate all barriers for those who must sign a new rental agreement (Illustrative Image Infobae)
The rental landscape in CABA and the Province of Buenos Aires poses significant economic challenges for tenants seeking to access housing. Despite the increase in supply, which grew by almost 200% since the implementation of the DNU that repealed the Rental Law , the initial outlay required to sign a rental contract exceeds $2,000,000 , which represents a significant financial effort.
On a positive note, the reduction in inflation in recent months allowed rental prices to close the year with increases below inflation.
According to a private report, apartment prices rose by 64.4% in 2024, four times less than the increase in 2023 (260%) and 54 percentage points below the annual inflation, estimated at 118.8% . However, several sectors have not yet recovered their purchasing power, making the signing of a new contract an economic challenge. Despite this, there is room for negotiation between owners and tenants, while properties take more than 40 days to be rented due to an increase in supply.
“Apart from the notable growth in rental proposals since the repeal of the Rental Law, the main difficulty remains in obtaining guarantees for renting, since several owners still require traditional guarantees, such as properties in the name of relatives, which is complicated for many tenants without additional resources,” Daniel Bryn , from Zipcode and who produces Monitor Inmobiliario, assured Infobae .
According to an analysis by the specialist, the average rent for a two-room apartment is around $550,450 per month in both districts (although everything depends on the location, the type of home and the requirements requested).
This initial cost includes advances, security deposits and, in some cases, fees or surety bonds. For CABA , the total initial amount reaches $2,311,890 , while in the Province of Buenos Aires it amounts to $2,576,106 , due to the inclusion of real estate commissions equivalent to 2% of the total contract (see infographic).
Furthermore, the maximum duration of contracts was reduced from 36 months to 24 months after the decree, a situation that directly impacted the costs of guarantees and commissions.
Now, they are calculated based on shorter terms, which partially reduces the tenant's obligations when signing. According to Bryn, “the changes in legislation have allowed housing to appear in areas with previously non-existent supply, such as Agronomía and Mataderos in CABA, or localities in Greater Buenos Aires, such as Morón and Lomas de Zamora .”
Insurance and warranty records are also taken into account , which vary between CABA and the Province of Buenos Aires .
Among the most important differences between CABA and the Province of Buenos Aires, it is worth noting that, thanks to Law 5,859, real estate commissions are not covered by tenants in the city. In the Province, however, fees represent 2% of the total amount of the contract, which increases the initial cost for tenants.
In CABA and Province, requirements may vary depending on local regulations and owner preferences:
Alberto Héctor Loyarte , a real estate expert and real estate broker, explained that surety bonds and guarantees are growing alternatives for those who do not have property guarantees. “These instruments only cover the tenant’s financial debts, such as rent, expenses or services, but do not cover damage to the property. Their cost is equivalent to one and a half times the monthly rent, including expenses, which increases the initial expense to access a home,” he pointed out.
Today, the offer is wide, but tenants are advised to explore options and counter-propose prices or adjustment modalities so that everything is clearly established in the contract (Illustrative Image Infobae)
In CABA, tenants are exempt from paying fees, but the costs associated with the type of guarantee they present can increase the initial expenses. In the case of opting for a property guarantee, it is necessary to pay the reports from the Property Registry to verify the owners , confirm the absence of liens and determine that they are not inhibited. Loyarte explained: “This procedure has an approximate cost of $50,000 , assuming that there are two owners involved.”
According to Loyarte, “in the case of the Province, the parties pay 2% of the contract in fees, establishing greater foresight regarding their initial expenses. In CABA, on the other hand, fees are not applied to tenants, which significantly reduces costs.”
The increased supply of properties has opened up opportunities in new areas. However, Bryn stressed that “negotiation between tenant and landlord is crucial to agree on clear terms that benefit both parties, especially in an environment of recent changes.”
According to Loyarte, surety bonds and bonds offered by insurance or financial companies have different characteristics. “Their advantage is that they speed up the recovery process by having specialized lawyers handle the legal procedures.”
Landlords usually define the conditions of the lease before offering the property, although they leave room for specific negotiations with the tenant. “With the new conditions established by the DNU, some contracts present changes with respect to those signed under the previous scheme, which requires adjustments between both parties to close agreements,” concluded Loyarte.
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Source:
Para empezar a alquilar en CABA y Provincia se necesitan más de dos millones de pesos: a qué hay que prestar atención
Las diferencias entre distritos, junto con adelantos, depósitos y otros gastos iniciales, exigen explorar opciones y asesorarse para evitar problemas en los acuerdos entre inquilinos y propietarios
www.infobae.com
January 13, 2025
Differences between districts, along with advances, deposits and other initial expenses, require exploring options and seeking advice to avoid problems in agreements between tenants and owners.
By Jose Luis Cieri
Shorter 24-month contracts reduce some initial costs, but do not eliminate all barriers for those who must sign a new rental agreement (Illustrative Image Infobae)
The rental landscape in CABA and the Province of Buenos Aires poses significant economic challenges for tenants seeking to access housing. Despite the increase in supply, which grew by almost 200% since the implementation of the DNU that repealed the Rental Law , the initial outlay required to sign a rental contract exceeds $2,000,000 , which represents a significant financial effort.
On a positive note, the reduction in inflation in recent months allowed rental prices to close the year with increases below inflation.
According to a private report, apartment prices rose by 64.4% in 2024, four times less than the increase in 2023 (260%) and 54 percentage points below the annual inflation, estimated at 118.8% . However, several sectors have not yet recovered their purchasing power, making the signing of a new contract an economic challenge. Despite this, there is room for negotiation between owners and tenants, while properties take more than 40 days to be rented due to an increase in supply.
“Apart from the notable growth in rental proposals since the repeal of the Rental Law, the main difficulty remains in obtaining guarantees for renting, since several owners still require traditional guarantees, such as properties in the name of relatives, which is complicated for many tenants without additional resources,” Daniel Bryn , from Zipcode and who produces Monitor Inmobiliario, assured Infobae .
According to an analysis by the specialist, the average rent for a two-room apartment is around $550,450 per month in both districts (although everything depends on the location, the type of home and the requirements requested).
This initial cost includes advances, security deposits and, in some cases, fees or surety bonds. For CABA , the total initial amount reaches $2,311,890 , while in the Province of Buenos Aires it amounts to $2,576,106 , due to the inclusion of real estate commissions equivalent to 2% of the total contract (see infographic).
Furthermore, the maximum duration of contracts was reduced from 36 months to 24 months after the decree, a situation that directly impacted the costs of guarantees and commissions.
Now, they are calculated based on shorter terms, which partially reduces the tenant's obligations when signing. According to Bryn, “the changes in legislation have allowed housing to appear in areas with previously non-existent supply, such as Agronomía and Mataderos in CABA, or localities in Greater Buenos Aires, such as Morón and Lomas de Zamora .”
Specific costs and requirements for tenants
The cost breakdown includes key elements: an advance payment corresponding to one month's rent ( $550,450 ), a deposit equivalent to two months ( $1,100,900 ) and, if you opt for surety bond, an additional expense of 5% of the total amount of the contract (approximately $660,540 ).Insurance and warranty records are also taken into account , which vary between CABA and the Province of Buenos Aires .
Among the most important differences between CABA and the Province of Buenos Aires, it is worth noting that, thanks to Law 5,859, real estate commissions are not covered by tenants in the city. In the Province, however, fees represent 2% of the total amount of the contract, which increases the initial cost for tenants.
In CABA and Province, requirements may vary depending on local regulations and owner preferences:
- Warranties :
- CABA : Landlords often accept property from a family member , surety bond, or even pay stubs as collateral.
- Province of Buenos Aires : Although traditional guarantees (property) are common, surety insurance gained popularity, especially for those who do not have relatives with property in this territory.
- Surety bonds :
- In both cases, the cost of insurance is around 5% of the total amount of the contract , but its adoption is more frequent in CABA, where tenants usually seek greater flexibility.
Alberto Héctor Loyarte , a real estate expert and real estate broker, explained that surety bonds and guarantees are growing alternatives for those who do not have property guarantees. “These instruments only cover the tenant’s financial debts, such as rent, expenses or services, but do not cover damage to the property. Their cost is equivalent to one and a half times the monthly rent, including expenses, which increases the initial expense to access a home,” he pointed out.
Today, the offer is wide, but tenants are advised to explore options and counter-propose prices or adjustment modalities so that everything is clearly established in the contract (Illustrative Image Infobae)
In CABA, tenants are exempt from paying fees, but the costs associated with the type of guarantee they present can increase the initial expenses. In the case of opting for a property guarantee, it is necessary to pay the reports from the Property Registry to verify the owners , confirm the absence of liens and determine that they are not inhibited. Loyarte explained: “This procedure has an approximate cost of $50,000 , assuming that there are two owners involved.”
Flexible contracts and new context after the DNU
Another relevant change is how contracts were adapted to the new regulatory framework following the repeal of the Rental Law.According to Loyarte, “in the case of the Province, the parties pay 2% of the contract in fees, establishing greater foresight regarding their initial expenses. In CABA, on the other hand, fees are not applied to tenants, which significantly reduces costs.”
Tips to avoid problems in contracts
Choosing between a property as collateral and surety bonds can be a dilemma for tenants. The sector acknowledged that traditional guarantees are free, but not always within the reach of those interested. Surety bonds represent a viable option, although more expensive, that allows greater autonomy in the process. As a recommendation, “if you can count on a property owned by a family member, this option is ideal to reduce initial costs, as long as it is available,” suggests Loyarte.The increased supply of properties has opened up opportunities in new areas. However, Bryn stressed that “negotiation between tenant and landlord is crucial to agree on clear terms that benefit both parties, especially in an environment of recent changes.”
Keys to signing a new contract
When choosing between a homeowner's guarantee or surety bond, it's critical to understand the implications of each option. A family member's guarantee covers all property-related issues, from debts to damages, but may require a court process to recover the home or funds, delaying resolutions.According to Loyarte, surety bonds and bonds offered by insurance or financial companies have different characteristics. “Their advantage is that they speed up the recovery process by having specialized lawyers handle the legal procedures.”
Landlords usually define the conditions of the lease before offering the property, although they leave room for specific negotiations with the tenant. “With the new conditions established by the DNU, some contracts present changes with respect to those signed under the previous scheme, which requires adjustments between both parties to close agreements,” concluded Loyarte.
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