In these cases, article 5 of the Civil and Commercial Codewhich determines that “The laws take effect after the eighth day of their official publication, or from the day they determine.”.
Although, this decree must also go through the legislative palace. He DNU of Javier Milei published on Thursday at 00 must be approved in the Bicameral Commission of DNUs of the Chamber of Deputies and the Senate. Although it can also be objected to by the Judiciary, which has the power not to approve the articles of the decree if it considers that they go against other rights or if they are unconstitutional.
DNU: what will rental contracts be like with the repeal of the law and the modification of the Civil and Commercial Code?
With the deregulationthe real estate sector has the possibility of having a multiplicity of contracts and that each one be independent of the previous one, which would “unique and unrepeatable“, as he pointed out to this medium Marta Liottopresident of Unique College of Real Estate Brokers of the city of Buenos Aires (CUCICBA).
Rentals: contract term
Until now, The contracts had a minimum term of 3 years, while prior to the rental law it was 2 years. However, with the repeal of the current norm and the modification of article 1,198 of the Civil and Commercial Code There is no longer a minimum lease period, but rather, according to the decree, “The term of the leases with any destination will be the one that the parties have established“.
In this sense, Daniel Zamponepresident of the Argentine Real Estate Chamber (INC)considered in dialogue with Ambit that free agreement “would have to improve the market”. “I never understood the reason why if I had an apartment to rent for a year, because, for example, I was going to work in Italy, I couldn’t do it.. All this, because the law said that the minimum had to be three years, but surely there was a tenant who could use that apartment for a year,” argued the real estate reference.
For his part, Liotto stated that From the CUCICBA they will try to advise the owners to return to the “24-month contracts” schemewhich was a market that gave predictability to the tenant and the owner.
In coincidence with Liotto, the commercial manager of Miranda BoschAndrés White, highlighted that the real estate agency expects the market to go two year contractsgoverned by the Civil and Commercial Code.
Rentals: free choice of currency
In addition, the parties are given the free choice of the currency in which the lease contract will be concluded. That is, the obligation for contracts to be in pesos will no longer apply. Although the text also adds that the amount can be determined in any type of currency: “Legal tender or in foreign currency, at the free discretion of the parties”.
Foreign Minister Diana Mondino took care of ratifying through its social networks that “in Argentina contracts can be agreed in “Bitcoin” or in any other crypto, as well as in “species or kilos of steer or liters of milk”.
Regarding the possibility of trading in different currencies, The president of CUCICBA stated that there could be dollarized neighborhoods. “There are places where contracts could be made in dollars like in the North corridorthe area of Madero Port or another particular point in the City, since It is another public and another purchasing power“, he analyzed.
“From now on, The real estate broker will be the protagonist of the changes that are made in the future. We will have to make the owners aware of not drifting in their ideas in a harmful way and to be able to build positively, so that there is a much more encouraging and supportive scenario, both for the owners and for the tenants,” said Liotto.
On the other hand, since Miranda Bosch They expect the market to experience, like the real estate sales market, “a dollarization”. And they predicted that there are great possibilities that “increase the availability of apartments for rent”thanks to deregulation.
Rentals: freedom of contract
He decree of “reconstruction for the bases of the economy” of Javier Milei also modifies the article 958 of the Civil and Commercial Code of the Nation and gives a “freedom of contract”which implies that the owner and the tenant can be “free” to “enter into a contract and determine its content.”
However, the relationship of forces between the landlord and the tenant are not the same, since the landlord can impose his rules and the tenant will have to abide by them or look for another property.
Rentals: indexation to be agreed between parties
In this case, he also gave his arm to twist the real estate sector. In October, a modification to the rental law was agreed, where contract indexation times were reduced from one year to six months. However, recently the sector has been asking that they be for a shorter period of time, since inflation hits very hard.
With the new decree, the Government allowed the parties “agree on the adjustment of the rental value”for him index they deem appropriate and for the term you wantsince there is no established deadline, and there is “freedom of contract”.
Regarding the increase, Liotto stated that it could be “every three months” and through the index of Salary Variation Coefficient (CVS) that performs the National Institute of Statistics and Censuses (INDEC). Although he recognized that on this point, the parties must agree, so “each contract will be independent of the other and perhaps even unrepeatable”.
Rentals: guarantee
With the rental law, the tenant gave the owner a deposit of one month’s rent (in pesos), which the owner had to return at the end of the contract, updated.
However, with the repeal of the norm, the article of warranty in the Civil and Commercial Code and It was established that “the parties can freely determine the amounts and currency delivered as bail or security deposit, and the manner in which they will be returned upon completion of the lease.”. Although it is clarified that “it may not be less than a monthly term.”
Rentals: termination of contract by the tenant
Within the DNU it was determined that the tenant can leave the property, but paying a “fine to the owner of 10% of the total of the remaining months until the end of the contract.” Until now, with the law, the contract could be terminated with 3 months’ notice without additional charge.
What happens to current contracts?
Contracts that have already been signed will continue their normal course. That is will continue to be governed by the rules that were in force at the time of signinggiven that the laws are not retroactive.
In these tenants, the new rules – if approved by Congress and not objected by the Courts – will impact the moment they need to carry out a new lease contract.
How did the real estate sector take the rent deregulation?
For the real estate sector this standard is “positive”. This was confirmed by the different analysts Ambitas was the case of Zampone, president of the CIA, who stated that he is “happy” because this change in legislation “has to improve the market.”
From CUCICBA They released a statement where they gave their support for the repeal of the current norm and highlighted that “all these announced provisions will have a response in the increase in the supply of rental properties“, which was one of the main problems that was observed with the new legislation.
“The faster the unknowns are cleared up in various aspects of economic policy, the sooner the recovery of our sector will occur.“they added.
Meanwhile, since Miranda Bosch also They predicted that the supply of rental properties will gradually increase.stimulating “greater activity in the market”, although they noted that in this context the sector will experience a dollarization.
“It is plausible that the measure will boost activity in the sales marketgiven that Investors could perceive this new dynamic as an opportunity to acquire properties that could later be used for rent.. The prospect of a more accessible, affordable and profitable rental market could motivate investors to acquire properties with the aim of offering them for rent. In the previous context, investors were inclined towards purchasing properties with the intention of selling them or using them for temporary rental, given the lack of attractiveness in the long-term rental market,” they analyzed from Miranda Bosch.
Source: Ambito
