With the entry into force of DNU dictated by him Governmentas of December 29, 2023, the rental law. From then on, the new contracts were “released” to the common agreement between owners and tenants. A month later, the market continues to readjust to the new reality.
It happens that, although on the one hand The supply of rental properties increasedthose looking to rent often find values they cannot afford and upgrade formulas that could become “unsustainable” in the near future, according to organizations that bring together tenants.
For example, according to a report prepared by Maure Inmobiliaria, The rental supply in the City of Buenos Aires increased 38% in year-on-year terms in January and registered its first positive variation after 27 months of consecutive decline. In turn, the availability of apartments for sale decreased by 23% in the same period.
The thing is that, as pointed out by a real estate agency Ambit“many owners who had the properties closed, They chose to rent them out under the new rules”. “That is why there was significant growth in supply during the first days of January,” he summarized.
Rentals: what the new contracts are like
In this context, from the group Grouped Tenants They carried out a survey with tenants from all over the country to consult them “what it’s like to rent in the Milei era“, since the repeal of the Rental Law through decree 70/2023.
Among other results, the survey indicates that 87.3% of the contracts that are signed under the protection of the decree have an update in their values for periods less than 6 months. 25% have an update every 3 months and 56%, every six.
While, 25% of contracts are signed with a term of three years (as stipulated in the Rental Law); 24% between one and two years; 18% between six months and a year and 25% for less than six months.
The survey also investigated the feelings generated by the housing issue, and revealed that among the tenants who responded to the questionnaire “Anguish predominates (78%), anxiety (75%) and the feeling of hopelessness (68%).” In that sense, “the vast majority (92.9%) of those surveyed consider that 2024 will be worse than last year.”
For tenants, the values are “unsustainable”
Based on this data and by analyzing the situation that thousands of tenants are going through, Gervasio Muñozpresident of the National Tenants Federation, said Ambit: “Beyond what we are doing judicially and the fights we put up to bring down the decree, It’s time to tell what is happening. They operated against the law for this to happen. It’s time to reflect on why what happens happens. The market wanted there to be no regulation and these are the consequences.”
Regarding rental values and contract updates, and despite a greater supply, Muñoz said: “Today it cannot be rentedfor the increases they are imposing, for the conditions of the contracts. He who can signs and in six months he explodes, because there are quarterly or semiannual updates for inflation. He who pays $400,000 per month today will pay $800,000 in six months. “It’s going to be unsustainable.”
After the entry into force of the DNU, Grouped Tenants filed an action to annul the decree that repealed the rental law. And, although at the beginning of January they reported that the justice system enabled the judicial fair to address the issue, at the moment there is no news in this regard. “The complaint continues. If justice rules against the DNU, the Rental Law would apply again,” Muñoz concluded.
Source: Ambito
