As the Minister of Economy did in November 2021 Sergio Massa has once again expressed its intention to repeal the current Rental Law, effective from July 2020.
The official discussed the matter with President Alberto Fernández over a lunch on Monday and reportedly he would have agreed to advance in eliminating the law promoted, at the time, by the deputy Daniel Lipovetzky, of Together for Change.
Now the Economy is evaluating the possible alternatives to suspend the law that regulates the market and has produced numerous inconveniences, including exorbitant price increases and a significant contraction of supply of real estate
When it was discussed, the Rental Law had a large consensus in Congress, but then dozens of projects rained down to modify it due to the problems it brought to the market.
Basically, it introduced key changes, as the extension of the duration of the contracts from two to three years and a single annual update of the monthly value rent, according to an index that combines the evolution of wages and inflation.
Last year they argued two opinions in the Commission: that of Together for Change, which has returned to the previous scheme, the terms of the contracts have been reduced, and that of the Frente de Todos, which has maintained all the current conditions, but has strengthened the sanctions, says the deputy of the opposition, Martin Tetaz,
“They (the deputies of the Frente de Todos) consider that the law is very good, but it is not respected. If this opinion is approved, it is not that the current law will be suspended, but quite the oppositeor,” explains the Together for Change lawmaker.
“The only option left is that change deputies in December, that the sentence be withdrawn and we can repeal it,” he adds.
On the possibility that the government suspends the law without voting for another one, Tetaz says the DNU can only suspend a law in situations of force majeure, as happened with the pandemic. “A DNU cannot repeal or amend a law in a normal situation,” she says.
With the law in place, supply has been reduced and prices have soared. In the first quarter of 2023 alone, the increase averaged 25.7%, while in the last quarter of 2022, the increase was 17.3%, according to a survey carried out on the basis of advertisements from the Zonaprop real estate portal . Thus, over the past 12 months the price of leases accumulates a 118.6% increaseabove headline inflation.
Taking values in pesos, according to ZonaProp, the rental value of a studio in CABA is $96,578 per month, a two-bedroom comes to $116,822 a month, and a 70m2 three-bedroom rents for $156,078.
As Miguel Di Maggio, director of the Depa real estate agency, recently pointed out to Clarín, “when the law was voted, inflation was already at 50%. So, many landlords, before this law, adjusted 25% every six months. Today we find ourselves with annual adjustments that already exceed 90% and are increasing. And this barefoot not only the landlords but also the tenants. Because, clearly, the problem is not only the law, but also inflation.
Source: Clarin
