Sources from the Housing Institute of the City of Buenos Aires (ICV) informed infobae that as soon as the Buenos Aires Head of Government, Horacio Rodriguez Larretalaunched yesterday the package of measures to “alleviate” the situation of the rental market in crisis that is currently going through there were thousands of clicks to consult and apply on the website of this body.
The announcement was launched in the midst of the debate over the possible suspension of the Rental Law (this is how the national government made it known that it would suspend it for 180 days and its possible reform would be discussed in Congress).
Specifically, the package of measures is made up of three programs that will be offered by the IVC. They are aimed at financing the costs of the initial rental contract and the renovation of unused homes, plus two tax exemptions.
One of the programs that most attracted people’s demand was that of Guarantee + Easywhich consists of surety insurance that allows tenants to facilitate their way and break the “entry barrier” that often causes the lack of real estate guarantees or guarantors.
Surety insurance benefits tenants because it grants the option of access to a rental quickly and cheaply, without the need to obtain an owner guarantee. and to the owners because it is a much safer and more agile alternative that supports compliance with the obligations assumed by the tenant in the contract and provides greater agility and legal certainty than an owner guarantee.
The insurance company (there are six that are available on the IVC website), before issuing the policy, does a credit analysis where the solvency and payment capacity of the tenant is verified.
The guarantee is granted by insurers that are permanently audited by the National Insurance Superintendence.
In case of non-payment by the tenant, the insurer is the one who responds, holding the owner harmless. It is much more efficient and faster than other alternatives. The surety insurance is executed within a period of a few months, unlike proprietary guarantees that require long judicial processes to be executed.
Alejandro Bennazarpresident of the Argentine Real Estate Chamber (CIA), commented to infobae that “everything that is communicated and with a positive message and for the benefit of owners and tenants is vital to try to reverse the damage caused by the Rental Law. At this point it is auspicious, because the negative is when you seek to discourage with messages that seek to punish with penalties or the intention of generating taxes on empty housing, that does not contribute at all. As real estate agents, we endorse good intentions and we are also concerned about reversing this bad situation and providing solutions to families in terms of housing”.
In addition, the owner is exempted from facing a large part of the legal procedures, since the insurer provides legal assistance during the eviction process.
Daniel BrynReal Estate analyst and who makes Real Estate Monitor, highlighted infobae that “it is very good that the Buenos Aires Government subsidizes part of the cost of surety insurance for the benefit of tenants. With how fast properties are rented today in the market, it is important that their implementation be agile, because it is essential that they come out soon, since they cannot take more than a week, otherwise the tenant may lose the reserved home and thus have to resort again. urgency to family, friends or co-workers to come out as guarantors and gathering all the required papers is not easy”.
Christian Werlepresident of ICV, told infobae that “there is great enthusiasm and many people applied because of the need to rent right now. Guarantee + Easy allows access to surety insurance and when the person chooses the insurer they prefer, we discount 70% of the cost of the premium”.
Registration is through the following website: https://vivienda.buenosaires.gob.ar/garantia
Here are the steps to enroll:
- Be 18 years of age or older.
- Possess a total and/or family income of up to 7 Minimum Vital and Mobile Wages.
- Not have an unfavorable financial background.
- Possess Argentine National Identity Document.
In addition, to access the subsidy they must present:
- All the documentation related to the family group and the situations reported in the web form.
- Not having previously been favored with another benefit from the IVC and/or from the Municipal Housing Commission (CMV), as this body was previously called.
- Not be found in the registry of food debtors.
- The rental value cannot exceed 654 UVAs ($146,000 per month).
In the city of Buenos Aires, according to the Buenos Aires Housing Institute, there are 484,000 tenant households.
Property requirements:
- Destination: Housing destination housing.
- Location: Within the scope of the CABA.
The IVC clarified that it does not intervene in the search process and they can apply to the program already knowing the house that will be used for rent or start the search once they apply to the program.
Once the property is chosen and the guarantee is accepted by the owner, the insurer verifies the rental contract and proceeds to issue the corresponding policy. The insurance company will inform you of the amount to be paid and method of payment for the insurance issued, which will depend on the value of your rental and the subsidy obtained.
The rental contract that is subsequently concluded is a contract between private parties and the IVC does not intervene in it.
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