The president, Alberto Fernández, and his Minister of Economy, Sergio Massa, analyzed the possibility of end the law that regulates the rental market since 2020, and that Congress failed to modify, despite several attempts. Since its enactment, the rental law met with resistance, as it “severely affected the real estate market.”
At the time of its discussion in Congress, the rental law achieved broad legislative consensus, and It was approved in November 2019, during the government of Mauricio Macrialthough the sanction in the Senate came in June 2020, during the presidency of Alberto Fernández.
The most important changes brought about by the current rental law on the market were: the extension in the duration of the contracts from two to three years, and the annual update of the value of the leaseaccording to an index that combines the evolution of wages and inflation that is set monthly by the Central Bank of the Argentine Republic (BCRA).
One of the first negative effects caused by the standard was the uncertainty of the ownerswhich raised the values of the leases for the new contracts, above inflation, and some time later, rental offers fell and at higher prices. Since the entry into force of the regulation, around 30 legislative projects have been presented to modify it or request its repeal, but “none managed to advance.”
One of the proposals achieved, last year, a majority opinion in Congress, but it does not alter the minimum term of three years or the annual adjustment, which are, ultimately, the most resisted points. The opinion of the opposition is that the central points to be modified are to return to the two-year term for contracts and to adjust on a semi-annual basis with private agreements between the parties.
