change in rental laws?

[sergio]

Someone told me that there is a bill before Congress that would make some major changes in the rental laws. Maybe Nikad or someone else knows something about this.

 

[nikad]

I have been reading about this project, I am still not sure whether this would benefit tenants or not though. It does not benefit landlords for sure...
It basically proposes that long term ( regular ) rentals for housing can last up to 5 years, that garantias would be replaced by banks, and that teh rent could not be higher than 1/150 of the property declared value ( valor fiscal ) I guess in any case, if landlords want to get more money they will have to adjust the declared values ( hence pay more taxes ) If the project is approved, I am sure many owners will not want to rent their properties for such meager sums, will try to sell instead and the real estate market could be even slower than what it is atm ( that is my pov )

Here you have it explained with greater detail http://www.rosarionet.com.ar/rnet/opinion/notas.vsp?nid=45915

 

[BlahBlah]

So they want you take a maximum of 2% of ROI?

 

[steveinbsas]

So they want you take a maximum of 2% of ROI?

Would this kill you plan to buy four or five apartments to rent out?

 

[sergio]

This would surely have a devastating effect on owners and, as Nikad said, would add a huge surplus to the real estate market. Letting banks act as guarantors would be a mess - could you imagine trying to get a bank to pay the rent that is owed you? At least with the present system the guarantor is a real person who is under tremendous pressure to get the delinquent tenant out. Argentina is certainly full of amazing surprises!

 

[steveinbsas]

Don't banks already act as guarantors?

 

[sergio]

No, guarantors are INDIVIDUALS. That is why it is almost impossible for an expat to get a regular rental. Expats who are new to Argentina do not have close friends or relatives who are willing to make such a huge commitment. The risks can be tremendous.

 

[steveinbsas]

Isn't the reason most expats can't get "regular" rentals is that only expats with permanent residency can legally sign a contract for two years? Even then, they would still face the difficulty of finding a guarantor.

 

[nikad]

Yes, only perm residents can sign a 2 year contract. However Banco Supervielle has a product that some RE agencies and landlords accept, it is kind of expensive and you need a good income ( en blanco ) to be able get it. http://www.supervielle.com.ar/garantiasInquilinos.html both the tenant have to pay for this service ( tenant 6%+vat of the total of the contract, and the landlord 3%+vat ) I believe this is why it never got really big. also your rent cannot be more than 35% of your salary receipt.

 

[rmartinbuenosaires]

Everyday its something else. Funny thing is....people ACTUALLY want to open up businesses here too? I don't get it.

Watch out btw. That money that the government is not going to now be getting from the electricity/gas increases is going to have to come from somewhere? What will the next great announcement be, specifically relating to foreigners?