According to the rental law former, The contracts are for three years and updates are made annually by the ICL. Therefore, if a tenant was currently paying $80,000, they will now pay $190,000.
Although, if the contract ends, the owner can request a different amount for renewal.
The ICL is the indicator prepared by the Central Bank and is made up of the variation in the price and wage index.
Rentals: how the ICL is calculated
To calculate the annual update of a rental contract, the current price must be taken as a reference, divided by the value of the index with the start date of the contract. That amount is then multiplied by the index of the date on which the rent figure changes.
He ICL is found on the page of the central bank www.bcra.gob.ar.
Repeal of the rental law: how contracts would be agreed
The repeal of the rental law carried out by the government of Javier Milei through a DNU directly provides for the deregulation of contracts and returns to govern under the Civil and Commercial Codebut modified.
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).
The contracts can be for the time agreed between the parties, as well as the indexation of the contract and the currency in which it is agreed.may or may not be legal tender.
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”.
In this sense, from the real estate market, it is expected that the supply of rental properties will increase again, since “more predictability” will be granted to the owner, something that according to them did not exist with a three-year contract.
Liotto assured that from the sector They will try to get the owner to make contracts for “two years”. However, that will be directly at the discretion of the property owner.
Source: Ambito
