He Association of Auctioneers of the province of Buenos Aires and the Real Estate Association of the Federal Capital (Cucicba) spoke out in favor of draft modification of the Rental Law and that he received half a sanction from the Chamber of Deputies this week and asked for his prompt treatment in the Senate.
Among other points, the reform project approved in Deputies establishes that the validity of contracts between tenants and owners be reduced from three to two years, with an update that can be carried out within a period of between four and twelve months, with a system of update agreed between the parties.
In this sense, it establishes that the parties must agree on the rental price update mechanism at the beginning of the rental relationship, being able to apply for such purposes the Consumer Price Index (CPI), Wholesale Price Index (IPM) or Wage Index (IS), prepared by the National Institute of Statistics and Censuses (INDEC) or a combination of said indices.
cucicba considered “positive that, after several failed attempts that contributed to deepen the damage in the sector, this step has finally been taken” but stressed “the urgent need for the approved changes be endorsed as soon as possible in the Senate“.
“Now that the lower house has approved the modifications, we request that the Senate deal with it and urgently convert it into law,” said Martha Liottopresident of the entity, through a statement.
Good news for auctioneers
The vice president of the Buenos Aires Association of Hammers, jose saccoFor his part, he described the half sanction as “good news” and spoke in favor of the regulation on temporary rentals proposed by the ruling bloc. He assured, in a statement, that the two-year term and the possibility of an agreement between the parties to define the manner of quarterly adjustment, “will have a positive impact on the market” and stressed that will benefit tenants.
“We hope that the Senate approve the changes. In the medium term there will be more supply and this will lower the values of the rentals that today are through the roof. He quarterly adjustment will give more certainty to both owners like the tenants“said the leader.
He also insisted on the proposal to consider tax breaks that encourage the construction of rental housing. “Argentina has a housing deficit of close to four million. Today the rental offer is very low compared to the demand and contributes to exorbitant values. The multiplicity of offers will lower the price cost of rentals and the offer is reactivated,” Sacco said.
“The changes approved to the current norm, referring to the term of the contracts and the form of update valuesare aligned with what the institution and the rest of the entities of the real estate sector have publicly raised and the legislators of all forces as the necessary provisions to solve the terrible reality that brought to the sector”, indicated, for his part, Liotto.
He pointed out that “the rule that has been regulating the rental market implied the almost absolute loss of supply in the market, raising prices and making it impossible for the millions of families who need to rent to have a roof to access a property that meets their needs and economic possibilities”.
“Although the half sanction that today gives to the actors of the sector offers the hope of beginning to see the end of a situation that has hit them so much, tenants and owners They are still waiting for a definitive solution that will allow the market to recover its dynamism and respond to their needs,” said the head of the cucicba.