Have rents gone down due to recession?

[steveinbsas]

An Argentine friend is renting to other Argentines. The contract was for a dollar payment. When the lease came up for renewal the value of the peso had dropped substantially and the tenant complained that he could not pay the new price in dollars. My friend and the tenant came to an agreement for a new rent based in pesos. Of course my friend has an international perspective, has travelled a lot and speaks fluent English, so she is not typical of Argentine owners.

As nikad wrote in reply to your post:

A regular rental contract ( 2yrs ) in foreign currency is illegal though.

Did you remind your friend that the "laws should be respected" as you stated in a recent post regarding foreigners living and working illegally in Argentina or are Argentines with an "international perspective" exempt from your legal standards?

 

[John.St]

The guy across the hall from us (in Las Can) WAS paying $1300 pesos a month on a 2yr lease including a parking spot. The contract expired last month. The owner wanted to jack his rent to 3000 pesos a month. The guy moved out, said no way. Either the owner is an idiot and thought a local would actually pay that much money, or he just wanted him out so he could rent to a foreigner. Apartment has been empty since, will be curious to see if someone moves in this month.

Just curious, don't want to rent it: still vacant?

 

[John.St]

Anything a gringo has to pay for will not go down, Argentineans will heist a gringo in good or bad times.

This is called business - always ask the highest price you hope to get - done by everyone all the time all over the world.

A matter of technique:

Search through internet.
Print several interesting ads from several agents.
When agent by reflex demands higher price from stupid gringo, show friendly smile and say "soy extranjero, pero no soy idiota" - keep smiling.
Show agent print, accidentually showing top of prints with logos of competing agents too.

Either
1. Agent smiles too and the proper price is agreed upon.
or
2. Agent claims that owner demands so-and-so.
2.1 Show NoGo! grimace.
2.1.1 Jump to 1. above.
2.1.2 Leave - this is the second reason why you printed ads from several agents.