The Government is working on an initiative to modify the rule, which did not bring the expected results for the benefits of tenants and owners.
The ruling party will seek to advance in the coming days in the Chamber of Deputies with projects to give incentives to the construction of houses and mortgage credit lines, while working on an initiative aimed at modifying the rent law approved during Mauricio Macri’s administration, which created difficulties in its implementation.
The ruling party’s decision to advance a new rental law was advanced yesterday by the president of the Chamber of Deputies, Sergio Massa, who called for “discussing” in Congress a new rental law that provides “certainty” to the owner and ” guarantees and tranquility “to the tenant, after noting that the norm sanctioned during the government of Mauricio Macri” failed “in 2020.
Here is a review of the fundamental points of it:
1. Duration of contracts
The Law establishes that rental contracts must have a minimum period of three years, one more than the usual period.. That gives predictability to tenant, that a home is insured for that period.
On the side of ownersOn the other hand, they lose the possibility of having the property – for example, to sell it – for a longer time and cannot renegotiate the contract according to changes in the market.
Work is being done on an initiative aimed at modifying the rental law
2. Annual adjustment
The Rent Law also established the obligation to make only an annual adjustment according to a formula published by the Central bank. Its adjustment is made based on a combination in equal parts of the Ripte wage index and the INDEC Consumer Price Index (CPI).
In this way, although it freezes the price for 12 months and, in an inflationary context, “liquefies” the weight of the quotas on the salary, when the adjustment arrives, the prices of the contracts jump strongly. This year, the first rents agreed according to this formula saw increases that came to exceed 40%.
3. Registration of contracts with the AFIP
The regulation that is now being modified establishes that the owner You have the obligation to register the rental contracts with the AFIP. If the landlord does not do so, the tenant can carry out the process.
This point generated controversy among the landlords, who prefer not to formalize that rent before the collecting body. In fact, this Thursday the Minister of Territorial Development and Habitat, Jorge Ferraresi, estimated that only 10% of the current contracts were registered, given the informality affecting the market.
Another controversial point is related to the distribution of expenses between the tenant and the owner
4. Deposit and guarantees
This regulation also established that the tenant can only be asked, as a deposit, the equivalent of the amount of the first month’s rent. This marked a sharp reduction in the price “of entry” to a property, since up to three months in advance were required.
Regarding the guarantees, the tenant must propose at least two possibilities between real property title; Bank guarantee; surety insurance; surety bond or joint guarantor; or personal guarantee of the tenant: salary receipt, income certificate or any other means.
On the landlord’s side, you cannot ask for a guarantee that exceeds 5 times the monthly rental value, except in the case of a personal guarantee from the tenant, when you can request up to a maximum of 10 times the monthly value of the rental.
5. Repairs and expenses
Another controversial point is related to the distribution of expenses between the tenant and the owner. The tenant must pay the expenses associated with the usufruct: electricity and gas bills, the payment for maintenance personnel, among others. In addition, you can make repairs (with prior notice to the owner) and deduct them from the rent.
The landlord must take charge of repairing the deterioration of the property caused by any cause not attributable to the tenant. On the other hand, the extraordinary expenses, which do not make the use of the property, must be borne by the owner.