The first contracts with the new rental law expire: how many will be renewed?

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In the coming months, the first contracts signed with the new and controversial Rental Law (27,551) will begin to expire. And, after the vicissitudes that the market has gone through, plus the attempts to reformulate or postpone the law that have not materialized, New doubts arise in the real estate sector.

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Like, how many of those three-year contracts are going to continue on some kind of renewal transitional or with new contracts similar to the current ones, how many holders they will put up for sale your property or they will leave them blank until the elections.

balayan lonelinessowner of Maure Inmobiliaria, believes that “everything will depend on the experience that both parties have had and above all What were those rental prices like?”.

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According to the directive, the current contract adjustment index, the LCI prepared by the central bank, has increased 96% in the last year, while market prices averaged 120%.

“The rent was kept in relation to the salary of the tenants, but before drop in supplyWe have to see if they can cope with the higher prices,” he explains.

“For landlords and also for tenants, three years is an eternitygiven the inflation that exists”, according to the benchmark for the sector. This has led to a 30% year-on-year drop in real estate supplywhereby “there must be significant incentives for people to re-let their property,” he says.

According to Balayan, in his real estate “they are losing many customers because reality indicates it many informal contracts are madeshorter or which many owners turn to temporary rent what is it in dollars and it has more flexibility,” he says.

“What we are seeing is this now people remain as they are. Because whoever has to make a new contract will find it very difficult, you will find very high prices”, pointed out the coordinator of the ROI (Real Estate Operations Network).

Second Francis Altgeltpresident of the real estate agency of the same name, “many of those who rented the apartment three years ago did so because it was the height of the pandemic and the sales market has been totally blocked. That is, they delayed the decision to sell,” she explains.

The supply of rental properties is down.  From: Maure Inmobiliaria

The supply of rental properties is down. From: Maure Inmobiliaria

However, the businessman thinks: “today the vast majority are clear that they will no longer offer the apartment for rent for three years. Either they put it up for sale or they rent it temporarily. Our suggestion to those who consult us is wait for those contracts to expire (from July onwards) to make the best decision“, commented.

Second Diego Migliorisimanager of a real estate company with operations in the federal capital, “The owner who invests and is a historic rentier is about to renovate. You will of course negotiate a new value, depending on the situation, but it also has to be a value the tenant can afford. Priority is always given if the tenant is good, compliant, It is very likely that a large number of contracts will be renewed.”

In his view, “there’s an expectation that in the next few years the inflationary problem that’s at the epicenter of the whole problem in terms of rents and the macroeconomics will be solved,” he says.

consulted about it How will the elections affect? In the owners’ decision on their properties, the businessman commented: “I don’t see the owner waiting to see what happens. Or you decide to put it up for sale and go bankrupt because inflation has really eaten up a lot of the profitability, or lease it back and trust that the inflation problem will go away,” he says.

“In other words, whoever wins this election, the number one goal will be to solve the inflation problem. If one, as an owner, analyzes that inflation will continue at these rates, obviously one will fail, but many people are confident that it will resolve itself, which is why it will continue. AS I don’t see many properties for sale.” concluded.

Source: Clarin

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