Rentals: contracts that are renewed in August will have increases of over 60%

Among the items that will have a strong impact on the pockets in August are rents. It happens that tenants who have to renew their contracts this month – which are under the rental law that currently governs will have increments greater than 60%.

That way, if a family paid a monthly rent of $ 58,000 for a three-bedroom apartment, for example, from now on, must pay $ 92,800.

The calculation comes from the expected change in the Leasing Contracts Index (ICL) that the Central Bank (BCRA) prepares daily and combines a mix of wage increases and inflation.

If a tenant signed a lease on August 1, 2021, they must renew on August 1, 2022 with a 60.96% magnification, for example. The outlook is not very encouraging for tenants considering that, with the acceleration of prices in recent months, with the same trend, the rates of change would also continue for the next few days.

According to a recent survey by the Inquilinos Agrupados group, 29.3% of tenants have contracts with a shorter duration than the legal one. According to Gervasio Muñoz, head of that association, this is due to “a clear maneuver by real estate companies to impose increases outside the official rate. Also 21.1% receive updates every 6 months or less “he pointed.

As for prices, the trend is upward. According to the latest report drawn up by Mercado Libre and the University of San Andrés (UDESA), in July rents at constant prices per square meter (i.e. in real terms) in AMBA recorded an increase of 17.3% for houses and 3.1% for apartments, compared to June.

Meanwhile, in the annual changes (i.e. July 2022 compared to July 2021), there was a decrease of 15.5% in the real estate market and an increase of 3.7% in the apartment market.

In Greater Buenos Aires, however, according to polls by the Zonaprop platform, rental prices rise below inflation. In the northern GBA they increased 4.7% in the month and are stacking up 30% increase in the year. In GBA West and South the increase is 5.5% and the accumulation in 2022 is 29.9%.

Analysts from the Universidad de San Andrés explain that “to understand the jump in rental prices for the houses offered in the northern GBA, for example, it is necessary to consider two elements. On the one hand, “In July there was a notable rise in the parallel average exchange rate (which is used for rents offered in dollars) by 31% (when it went from an average of $ 214.45 in June to $ 281 in July). Today it is at $ 293.

“On the other hand, in the case of homes in the north GBA, a high proportion of those offered for rent in the Mercado Libre are denominated in dollars. In fact, in July, that percentage was 71,% of all properties, a percentage well above the proportion represented by dollar house rents in CABA, GBA South and West. ”

According to the broker Oscar Puebla, «today the situation of the tenants is more worrying because owners are demanding more and more requirements“to deliver your rental property.

“There are a lot of properties that are valued in dollars, for example, in the areas most frequented by tourists,” he says. According to the businessman, for that price level, his property he prefers not to rent apartments not to validate the situation, since they are asking up to $ 1,000 for an apartment in Puerto Madero and “collecting the commission is an impossible mission “insured.

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