The new law, in principle, seeks to put a stop to the maneuver of collecting rents for housing in dollars. Find out what will happen starting next month.
The new is now in effect Rental Law since it was published Decree 533/2023 in Official bulletin. The regulations aim to improve the situation in a market that until now affects more than six million tenants in all the country.
With the new law, in principle, it seeks put a brake to the rent collection maneuver for housing in dollarssomething that is set at one of the points that were part of the incorporated changes.
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Point by point, the changes in the Rental Law
The changes to the rule after the reform are the following:
- Rentals in pesos: The rule clearly establishes that the price of rentals must be expressed in national currency, and advertising of rental properties may not mention any currency other than the Argentine peso.
- Semi-annual rent update: Regarding the updating of rents, a significant change is introduced. Unlike the previous law, which allowed a single annual adjustment, the reform provides that Updates will take place every six months. Consequently, tenants will thus have two price increases per year instead of one.
- New rental update calculation formula: the formula Own house considers the lowest indicator between the average annual salary variation and the average inflation during the same period. In addition, it incorporates a Salary Variation Coefficient (CVS) with a capacity of 0.9, which means that only 90% of the average salary variation will be taken.
- The rental contracts Subscribed starting tomorrow must have a minimum term of three years.
- Tax benefits were established: The law provides that they will be exempt from paying the monotax income coming exclusively from the rental of up to two properties, and exempts from payment of personal property tax to properties intended for rentals and Tax on Debits and Credits (“to the check”) for the linked operations of the contracts. The law, which invites provincial jurisdictions to approve other tax benefits, allows the owner and the tenant to deduct from the Income Tax 10% of the total rental value annual.
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How much will rents increase in November?
To estimate the trend and deduce how the market may advance in the next month, you can take the price increase of the last month. The October increasesin relation to September prices, were 5.9% in the studio apartments, 4.5% for those of 2 environments and 11.1% those of 3 environments.
The median of the studio apartments offered in Federal capital It is $180,000. Meanwhile, the median of the offers of two-room apartments It is $230,000 and, of those of three environments, $300,000.
Source: Ambito
