The deceleration of cases by Covid-19 allowed the resumption of the opening of borders and the entry of foreigners to our country, either for tourism, to study or work. These, mostly chose to rent furnished and equipped apartments for periods ranging from one month to one year.
However, young people are the ones who most naturally consume this type of short-term temporary rental contracts. The units offered under this modality are furnished and equipped and this solves their problems, makes their stay simpler since they do not have to worry about investing in furniture for the units, allowing a free lifestyle that allows them to move wherever they want. convenient at the time and as many times as they wish.
Although at the price level the values are much higher than those offered under the traditional system, considering that it is also agreed in dollars (according to Airbnb data, for a two-room apartment you pay US$35 per day), currently the stock of apartments offered for temporary rent doubles those available to sign conventional contracts. According to statistical datathere are 10,316 units offered to the market under this systemwith more flexible contracts, offering an annual return of 6% against 2.8% in its traditional format.
The typologies that have the greatest demand in this format are one- and two-room apartments located in areas sought after by university students. As an example, a two-bedroom unit can be around the price of 400 to 500 dollars per month.
The real-estate market still going through a complex situation and every time it turns out less profitable for owners have a traditional rental property. Thus, the traditional offer is getting lower and lower and temporary workers have returned with great fury.
With the devaluation of the currency due to the inflationary processesour country became very attractive for foreign tourism, short-term rentals began to be an opportunity for owners to generate a higher income tied to the dollarusing a format that has as its greatest advantage a high turnover of occupants, which opens the possibility of not being tied to a single tenant and allows the owner to be able to update the price according to the prevailing demand at all times.
In this particular contracting modality, terms are usually agreed that range from a period greater than one day and less than 3 months, with exceptions that extend up to one year, but in this case new contracts must be made every three months in order not to incur the legal sanction of considering them traditional rentals, that is, with a term of three years. In contrast, a traditional lease has a minimum of 3 years, which is updated annually and with an update index set by the Central Bank, combining the indexes of the INDEC price increase and the RIPTE salary increase.
However, not just any property can be offered in the temporary rental market. The location and its benefits are relevant factors. In addition, it is very important that the owner takes care of all the details, since those interested in this modality seek to have everything resolved.
It is worth mentioning that, although the profitability is greater, temporary rentals imply a greater commitment by the owners, demanding greater attention efforts regarding the needs of the tenant. It will also be necessary to attend to demands of the tenants during the stayWhat clean and condition the property every time a check out is made. For this reason, it is suggested before making the decision to place a property under this system, to decide if one is willing to take care of the property management or if you prefer to delegate it to a third party, which will imply expenses for this service that will lower profitability by a few points.
Another issue to consider is that, with a growing demand and dollarized rates, the segment is attractive for those investors who choose to protect their money in bricks. It could be considered that we are facing an appropriate moment for the temporary rental segment to flourish, because tourism returns progressively based on the competitiveness of our prices, based on the macroeconomic situation that the country is going through.
The apartments intended for the temporary rental modality must have all the essential equipment for modern life, the tenant only moves with clothing and personal belongings. Guests seek comforts that allow them to live, study or work in different places according to their needs, highlighting among the most necessary aspects: Wi-Fi and internet, good cooling and heating system, quality amenities, mainly swimming pool, pet units. friendly and free parking, among the most requested.
The conditions and costs for renting a temporary furnished apartment vary according to availability and the requirements stipulated by the owners. In general, a personal interview is invited prior to signing the reservation. If the guest is a foreigner, a passport and credit card are required. At the time of signing the contract, advance payment of all months of rent and security deposit is required. In case of mediating the participation of a professional broker, the corresponding fees must be paid on the same day and will be adjusted according to the number of months of rental agreed. Finally, it is worth mentioning that no real guarantee (owner) is required and therefore they are appropriate for foreigners and tourists.
Reservations can also be made online or by other remote means such as telephone or e-mail. Temporary rentals usually include in their price, the cost of expenses, water, electricity and gas, these two services with a certain limit of consumption, cable TV, internet and taxes.
The most important points to consider the inclusion of a property in the temporary rental market is its location, that it is furnished and set in a neat and aesthetic way, a minimalist and modern orientation is suggested, avoiding objects, crockery, appliances and furniture. Generally used or in poor condition. Good functioning of services, gas and electricity, locks (preferably magnetic) and shutters in good condition. Smart TV with apps, full kitchen and abundant crockery, refrigerator in optimal conditions, good bed and mattress. Walls in good condition and painted, modern and bright environments. Finally, it is essential to keep the unit in excellent clean condition. The publication on the temporary rental platforms must have attractive photos and realistic and detailed descriptions.
In conclusion, temporary rentals are presented as an excellent option for both owners and guestswhich seek to avoid the unfavorable consequences of the current Rental Law and that adapts to the demands and modalities of post-pandemic life.
Executive Director of the Chamber of Real Estate Services Companies (CAMESI)
Source: Ambito
