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Traditional vs. temporary rentals: how the market has changed and which options are best for owners and tenants - Infobae
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www.infobae.com
February 11, 2025
The DNU that repealed the Rental Law redefined the agreements and opened new options. While CABA regulates tourism, medium-term rentals emerge as an alternative
While some owners are returning to conventional rentals, an intermediate alternative is emerging with the growth of the supply of medium-term rentals (Illustrative Image Infobae)
The repeal of the Rental Law and the new Buenos Aires regulations on temporary rentals have reconfigured the real estate market. While some owners are opting again for traditional two-year contracts, others are looking for more flexible alternatives in the face of the drop in tourism and the new rules for daily rentals. In this context, medium-term rentals are positioned as an intermediate option with advantages for both property owners and tenants .
With the Government's DNU, contracts can be freely agreed upon and without minimum deadlines, which opened up the possibility of more personalized agreements.
At the same time, the city of Buenos Aires implemented a mandatory registry for tourist rentals, with the aim of avoiding distortions in the market and ensuring greater transparency in the supply of properties.
But which option is more suitable today? Below, the real estate sector analyzed the new scenario and trends.
According to Dario Rizzo , CEO of Alternativa Properties, medium-term furnished rentals are more convenient for both owners and tenants. “Furnishing a property is expensive and is not justified for someone who will only live there for two years. Owners who offer quality furniture obtain better profitability, and tenants gain flexibility to move according to their needs,” he explained.
This type of rental not only attracts digital nomads, but also young people between 18 and 40 years old.
Alejandro Moretti , a member of the board of directors of the Buenos Aires Real Estate Association, said that the stability of the dollar and the repeal of the Rental Law led many owners to return to traditional two-year contracts with periodic adjustments.
“For tenants, the choice depends on their needs. If they come for work or study, they prefer a furnished rental for a short period of time. For those seeking stability, traditional rental remains the best option,” he said.
This measure seeks to regulate exclusively tourist rentals and does not affect medium-term rentals. “If implemented well, the new regulation will benefit this type of rental, since it targets another public: students, executives and public servants, who do not compete with the hotel industry,” Rizzo clarified.
Moretti warned that, after the repeal of the Rental Law, it was proven that regulations generate distortions in the market. “Today, supply and demand find a balance without the need for additional interventions,” he said.
Moretti agreed that the market is at a point of equilibrium, with owners satisfied with the profitability and sufficient supply for tenants to choose between different alternatives.
For foreigners, a passport, deposit and a work certificate or student visa are required if the rental is longer than three months. For locals, a credit check and proof of income are required.
Moretti noted that “for someone who plans to live in a place for more than six years, investing in furniture can be more convenient than paying for a furnished rental.”
However, he warned that changing tenants every two years generates additional expenses for the owner, such as painting and maintenance.
In terms of costs, temporary rentals can be between 10% and 30% more expensive than traditional rentals, although they include expenses and services. “In the end, they can end up costing the same or even less than a traditional rental, depending on supply and demand at any given time,” said Rizzo.
To take advantage of the furnished apartments, their owners now opt for medium-term rentals.
Moretti added that, in Palermo, the average traditional rent for a one-bedroom apartment is around $550,000 and $420,000 in San Telmo.
In comparison, temporary rentals in these areas cost approximately USD 650 and USD 500 , respectively. “In temporary rentals, the owner covers expenses and services, while in traditional rentals these expenses are the responsibility of the tenant,” he added.
With the market becoming more flexible and new regulations seeking to balance supply, owners are evaluating options based on profitability and stability .
Rizzo concluded that medium-term rentals are aimed at a different public than the tourist one.
“This type of rental does not compete with hotels, but is designed for students, digital nomads, executives, public officials and local young people. We focus exclusively on this segment, which differs from platforms such as Airbnb or Booking, which are geared towards tourism,” he concluded.
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Source:
Alquileres tradicionales vs. temporarios: cómo cambió el mercado y qué opciones son mejores para propietarios e inquilinos
El DNU que derogó la Ley de Alquileres redefinió los acuerdos y abrió nuevas opciones. Mientras CABA regula los turísticos, el alquiler de mediano plazo surge como alternativa
www.infobae.com
February 11, 2025
The DNU that repealed the Rental Law redefined the agreements and opened new options. While CABA regulates tourism, medium-term rentals emerge as an alternative
While some owners are returning to conventional rentals, an intermediate alternative is emerging with the growth of the supply of medium-term rentals (Illustrative Image Infobae)
The repeal of the Rental Law and the new Buenos Aires regulations on temporary rentals have reconfigured the real estate market. While some owners are opting again for traditional two-year contracts, others are looking for more flexible alternatives in the face of the drop in tourism and the new rules for daily rentals. In this context, medium-term rentals are positioned as an intermediate option with advantages for both property owners and tenants .
With the Government's DNU, contracts can be freely agreed upon and without minimum deadlines, which opened up the possibility of more personalized agreements.
At the same time, the city of Buenos Aires implemented a mandatory registry for tourist rentals, with the aim of avoiding distortions in the market and ensuring greater transparency in the supply of properties.
But which option is more suitable today? Below, the real estate sector analyzed the new scenario and trends.
Which options are more favorable
The dynamics of the rental market changed with the regulation and the unfavorable exchange rate for foreigners , which reduced the interest in temporary contracts and favored free contracts after the DNU.According to Dario Rizzo , CEO of Alternativa Properties, medium-term furnished rentals are more convenient for both owners and tenants. “Furnishing a property is expensive and is not justified for someone who will only live there for two years. Owners who offer quality furniture obtain better profitability, and tenants gain flexibility to move according to their needs,” he explained.
This type of rental not only attracts digital nomads, but also young people between 18 and 40 years old.
Alejandro Moretti , a member of the board of directors of the Buenos Aires Real Estate Association, said that the stability of the dollar and the repeal of the Rental Law led many owners to return to traditional two-year contracts with periodic adjustments.
“For tenants, the choice depends on their needs. If they come for work or study, they prefer a furnished rental for a short period of time. For those seeking stability, traditional rental remains the best option,” he said.
The impact of the new regulation in CABA
The Buenos Aires government has established new rules for temporary rentals for tourism purposes. The regulations require properties to be registered in an official registry and require transparency in publications, as well as incorporating taxes similar to those paid by hotels.This measure seeks to regulate exclusively tourist rentals and does not affect medium-term rentals. “If implemented well, the new regulation will benefit this type of rental, since it targets another public: students, executives and public servants, who do not compete with the hotel industry,” Rizzo clarified.
Moretti warned that, after the repeal of the Rental Law, it was proven that regulations generate distortions in the market. “Today, supply and demand find a balance without the need for additional interventions,” he said.
Market balance and new trends
For Rizzo, the key to stabilising the market is to differentiate tourist rentals from the rest. “ A person who rents for a month or more can stay for several months or years, and will not opt for a hotel . If the supply of well-furnished properties for intermediate rentals increases, there will be affordable and quality options for any tenant,” he said.Moretti agreed that the market is at a point of equilibrium, with owners satisfied with the profitability and sufficient supply for tenants to choose between different alternatives.
How the medium term works
Rental contracts range from one month to six months, and their requirements vary depending on whether the tenant is foreign or local.For foreigners, a passport, deposit and a work certificate or student visa are required if the rental is longer than three months. For locals, a credit check and proof of income are required.
Profitability and costs: which format to choose?
The main advantage of a traditional unfurnished rental is long-term stability.Moretti noted that “for someone who plans to live in a place for more than six years, investing in furniture can be more convenient than paying for a furnished rental.”
However, he warned that changing tenants every two years generates additional expenses for the owner, such as painting and maintenance.
In terms of costs, temporary rentals can be between 10% and 30% more expensive than traditional rentals, although they include expenses and services. “In the end, they can end up costing the same or even less than a traditional rental, depending on supply and demand at any given time,” said Rizzo.
To take advantage of the furnished apartments, their owners now opt for medium-term rentals.
Moretti added that, in Palermo, the average traditional rent for a one-bedroom apartment is around $550,000 and $420,000 in San Telmo.
In comparison, temporary rentals in these areas cost approximately USD 650 and USD 500 , respectively. “In temporary rentals, the owner covers expenses and services, while in traditional rentals these expenses are the responsibility of the tenant,” he added.
Medium term
Medium-term rentals, with flexible contracts and furnished properties, have gained ground in CABA. Moretti highlighted that this modality is the most in demand by tenants and plays a key role in the sector. “For many young people, it represents the first step towards their independence,” he said.With the market becoming more flexible and new regulations seeking to balance supply, owners are evaluating options based on profitability and stability .
Rizzo concluded that medium-term rentals are aimed at a different public than the tourist one.
“This type of rental does not compete with hotels, but is designed for students, digital nomads, executives, public officials and local young people. We focus exclusively on this segment, which differs from platforms such as Airbnb or Booking, which are geared towards tourism,” he concluded.
www.buysellba.com
