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Renting in Buenos Aires: a true impossible mission

2022-06-30T23:15:08.794Z

According to the Federation of Tenants of Argentina, in 2021, 60,000 families abandoned the home they rented due to high prices.



4 million Americans will not be able to buy a house 1:08

(CNN Spanish) --

A suitcase with signs that said: "I want to rent, but also live."

That was the way that the tenants found to protest and demand new solutions to the rent problem in front of Congress.

“Alert, alert, tenant alert, they leave us homeless in the Argentine Republic!” they shouted.

According to the Federation of Tenants of Argentina, in 2021, 60,000 families abandoned the home they rented due to the high prices of their contracts.

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The general secretary of the Argentine Real Estate Chamber, Claudio Vodanovich, criticizes that "politically the owners are made to look like the bad guys in the movie", but according to his vision the great problem of rents is called inflation.

In June 2020, a law regulating rentals in Argentina came into force.

This seemed beneficial to tenants because it prohibits monthly increases.

In fact, it established that the rental price updates be annual and that they must be governed by the index called RIPTE, which is made up half by inflation, half by the evolution of wages.

One of the demonstrators of the suitcase, Rosario, considered that this point of the law is fair since "salaries are not updated every three months, nor every six."

On the other hand, the head of the Real Estate Chamber warned that the great loser with this scheme is the owner.

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“When updating the price once a year, it happens that, putting the value of a monthly rent is equivalent to a kilo of sugar.

When he got to the end of the year he lost the purchase value of that money.

He lost 50% of the purchase value of that money,” Vodanovich explained.

So, the problems for the tenant come when the contract expires.

At that time the owner can fix a new price.

Vodanovich maintained that "the loss of money that it has throughout the year charges it at the new price."

In that sense, the head of the Real Estate Chamber indicated that the owners usually apply increases of 70% or more with the aim of mitigating the effects of future inflation.

Rosario admitted that she could not renew the contract where she rented because of the high prices.

“I had to run out of an apartment.

Many people whose contracts expired also and then they go back to their parents' house or you have to live in boarding houses."

Searching for rent and not finding it is another problem that tenants suffer.

Vodanovich stated that "many owners decided to take their apartments out of the rental ads and moved them to the sales ones."

According to data from the Argentine Real Estate Chamber, the number of properties for sale tripled.

"This generates a circle that is reproduced and suffocates you more and more," Rosario lamented.

This circle becomes even more vicious when observing that the demand for rentals is growing.

According to data from the Government of the City of Buenos Aires, the number of tenant families rose from 27.7% to 34.8%.

The latter seems logical if we consider that Buenos Aires is one of the 10 cities in South America where it is more expensive to buy properties, as shown by a survey by Mercado Libre.

According to two real estate agents, Claudio Vodanovich and Hernán Iradi, these are useful tips for finding a rental in Buenos Aires:

  • If you are renting, negotiate an extension or renegotiation of the contract at least three months before the current one ends to have more time to search for the next rental.

  • Although it is advisable to be able to live close to where you work, and if the value of the homes you are looking for is above the reasonable possibilities of payment, search in lower value areas with good transport connectivity.

  • Due to the high demand for rentals, when you go to see a property to rent, take a reasonable sum of money with you to formalize a reservation if you are interested.

  • Check the conditions of the things of the property to rent before signing any contract.

    For example: check if there are broken objects or if the oven, refrigerator, etc. work well.

  • Make sure what is the price of the expense to pay.

    According to the Real Estate Professional College, in July they will increase by 58%.

What are the three cheapest neighborhoods in Buenos Aires and what are the three most expensive?

Economic:

Almagro, La Boca and Lugano.

Expensive:

Palermo, Recoleta and Puerto Madero.

rent of houses

Source: cnnespanol

All news articles on 2022-06-30

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