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Two variables in the dilemma between renting or selling: The cost of maintaining a home and the disadvantages of leaving it closed - Infobae
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Dos variables del dilema entre alquilar o vender: el costo de mantener una vivienda y las desventajas de dejarla cerrada
Se trata de una decisión clave para el propietario de una vivienda. El aumento del 200% en expensas, sumado a las subas de impuestos y el deterioro por falta de ventilación, desaconsejan tenerlas ociosas. Estrategias esenciales para el éxito de ventas o alquileres
www.infobae.com
April 22, 2024
This is a key decision for the homeowner. The 200% increase in expenses, added to the tax increases and the deterioration due to lack of ventilation, discourage keeping them idle. Essential strategies for sales or rental success
By José Luis Cieri
Ventilating the property even if it is not inhabited is key to keeping it in good condition. It is advisable to visit it frequently and open water taps and turn on lights so that they work from time to time and avoid damage to pipes and walls.
The increase in costs derived from maintaining a closed apartment led owners to look for alternative strategies for its management, such as allocating it to rent or reducing the sales price.
The drop in prices of the last 5 years ( now it has stopped ) was one of the reasons why the owners decided to close their properties and finally wait for a recovery in the situation before putting the properties up for sale.
Francisco Bosch , from Miranda Bosch Real Estate & Art, told Infobae that “inflation triggered significant increases in basic services, expenses ( they rose 200% year-on-year ) and construction costs, aspects of vital importance for apartment owners. In this context, keeping a property closed pending a market rebound becomes increasingly difficult.”
It is estimated that maintenance costs, expressed in dollars, increased between 70% and 80% due to the devaluation of the peso and the relative stability of the dollar.
“This situation represents a considerable financial burden for owners, who could face greater difficulties if they do not consider alternative options to make their properties profitable,” Bosch added.
Having a closed department implies having immobilized capital, which can be unfavorable.
“The cost of maintaining apartments in areas like Palermo or Belgrano is similar. For example, a standard two-room apartment, including ABL, expenses and services, is around $100,000 per month. If top category apartments are considered, this cost can rise to $250,000 or 300,000 pesos,” explained Sebastián Cantero , from TBSA and director of Toro Real Estate.
Rentals
With respect to locations, the Rental Law repealed by the DNU promoted by the current Government was the reason why owners preferred not to rent their apartments and thousands had them closed.
It is important to consider the higher margin of value and more sales opportunities if the property is properly maintained
In the current context, an interesting phenomenon is being experienced: a significant increase in the number of properties available for rent, motivated by recent changes in legislation.
Property owners now consider that it is more convenient to rent the property instead of leaving it empty. The elimination of the law tends to normalize the market.
It is advisable to establish two-year rental contracts, or one year with the possibility of renewal if the sale is contemplated, choosing an adjustment index according to the real estate market.
“It is anticipated that rental prices could continue to decline in relative terms next year if inflation slows sharply,” said Oscar Puebla , architect and real estate expert.
Maintain property
Favorable conditions are presented that suggest a more favorable horizon for sales transactions. It is crucial for owners to keep their properties in good condition, as a well-maintained property can achieve a higher market value and increase sales opportunities.In this regard, Cantero recommended making periodic visits to empty properties to prevent damage. “It is an essential recommended practice. Some of the suggested actions include opening the faucets, windows, and turning on the ovens and burners to ensure the good maintenance of the property,” he advised.
At the moment, the trend indicates that it is more convenient for owners to rent their properties rather than leave them empty, taking advantage of the renewed interest in renting as a safe and profitable option. On the other hand, this situation presents an opportunity for owners to reconsider their long-term strategies regarding the management of their properties.
There are risks associated with prolonged disuse of properties. Without a doubt there is deterioration that has to do with lack of use. “This phenomenon particularly affects structures and essential components of homes, from water and gas pipes to kitchen and bathroom appliances, and is exacerbated in elements such as wooden windows that require regular maintenance,” said Puebla. In other words, behind the apparent savings that come with not using a property, hides the risk of accelerated deterioration.
A minor leak, if not treated in time, can cause significant deterioration to walls and floors.
“There are times when a small leak, not taken care of in time, damages walls, floors and neighboring apartments. This situation not only poses problems at a structural level, but can also lead to conflicts and a decrease in the value of the property,” Puebla said.
Closing the apartment for long periods, such as two years, can cause deterioration that requires repairs, such as changing faucets or toilet mechanisms, among others.
Cantero advised: “It is essential to keep it ventilated, whether it is put up for sale through a real estate agency or done privately, thus avoiding closing it completely and forgetting about it.”
Strategies
The segment maintains that instead of keeping the home closed, it is advisable to rent it, even for short periods, as in the case of temporary or conventional contracts.Cantero indicated that, although inflation reduces rental profitability, it continues to be a source of income. The problem appears when needing that money for personal expenses, revealing the difficulty of balancing income and expenses.
Owners looking to rent are advised to keep their properties in good condition and clearly visible to maximize income by renting them at the best price.
“With regard to the sale, it is advisable to set a price in accordance with the market value of the property to attract the greatest number of interested parties and, thus, increase the chances of receiving a solid offer that allows the sale to proceed,” Bosch added.
Like any other item for sale, a property must be kept clean and tidy.
Puebla concluded: “A property correctly valued on the market usually sells within 90 days.”
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