Recoleta long term, sleeps 7, furnished option, bank guarantor OK

[earlyretirement]

One does not always make money on rentals. The rents have fallen but not my expenses as a landlord. Sometimes we win, sometimes we lose. Many are experiencing hard times now. It´s just part of life.

You nailed it Paul. This COVID has been a nightmare for many locals but also owners as well. At least it sounds like your building is allowing strangers/renters in the building. Mine has forbid anyone except the actual owners for months since the lockdown. I believe they will finally in 2 weeks allow people to start, but it's been brutal especially since I had several that wanted to rent my property. I had a friend stuck in Buenos Aires and also wanted to let him use my property free and the building wouldn't allow him to enter. Some buildings are super paranoid.

I have other friends that were in long term leases with expats that were living in Argentina for years and just because they were from the USA, the building changed the locks and would no longer let them in so naturally the tenant stopped paying their lease and moved on leaving the owner to an empty apartment that no one has seen in months since she lives in the UK.

 

[Johnny]

I checked out this apartment yesterday. It is huge and clearly nicely kept. It is actually much bigger than I need, but I would think someone looking for a multi-bedroom apartment in a great part of town would be interested.

 

[Pauletthp]

Can someone help me understand the actual process of leasing in BA. Done by attorney, background check, certified funds, etc???

 

[earlyretirement]

Can someone help me understand the actual process of leasing in BA. Done by attorney, background check, certified funds, etc???

There may be more ways now in light of COVID but traditionally the rental market is segmented in short-term rentals (think of Airbnb) or long-term rentals. Short-term you just find your own tenant and they prepay for the lease. I ALWAYS prefer Airbnb as they have a guarantee program if the tenant doesn't leave or damages your apartment, you have up to $1 million guarantee. It's the safest way. Even if the tenant prepays the entire lease in cash, they could still overstay the lease and it's difficult to get someone out of your place once they are in due to crazy tenant laws there.

Long-term leases can also be done via Airbnb but in many cases, you would just have a realtor find you a lease. Typically a realtor will change you 1 month commission and the leases I've done are 12 months to typically 24 months. I put an inflation clause in if the amount is not in US dollars. Most locals don't want to use US dollars for the rate so you have to put a maximum cap on the inflation %. Again, even if you have a lease doesn't mean they will leave. So typically that tenant would need to find someone to sign as a guarantor that will promise that if they don't leave at the end of the lease, you can go after that guarantor's property. The guarantor has to put up one of their properties they own free and clear.

I believe now you can also buy some kind of policy from a bank. In the past, I've rented to large corporations and the companies have signed as a guarantor promising if their employee stopped paying, they would pay. I've done that with Exxon a few times with properties I've owned.

 

[PaulBee]

I checked out this apartment yesterday. It is huge and clearly nicely kept. It is actually much bigger than I need, but I would think someone looking for a multi-bedroom apartment in a great part of town would be interested.

Thanks for your very kind words. I think my friends have done a very good job decorating, furnishing and maintaining the apartment.

 

[PaulBee]

You nailed it Paul. This COVID has been a nightmare for many locals but also owners as well. At least it sounds like your building is allowing strangers/renters in the building. Mine has forbid anyone except the actual owners for months since the lockdown. I believe they will finally in 2 weeks allow people to start, but it's been brutal especially since I had several that wanted to rent my property. I had a friend stuck in Buenos Aires and also wanted to let him use my property free and the building wouldn't allow him to enter. Some buildings are super paranoid.

I have other friends that were in long term leases with expats that were living in Argentina for years and just because they were from the USA, the building changed the locks and would no longer let them in so naturally the tenant stopped paying their lease and moved on leaving the owner to an empty apartment that no one has seen in months since she lives in the UK.

I am very sorry to hear about your situation and about tenants who were barred from some rental buildings based on nationality, not on whether they had COVID. For months it was not possible to show my unit. I expect the building may require some kind of documentation regarding whether the future tenant seems COVID free, but if not carried to excess, that is good.

 

[PaulBee]

There may be more ways now in light of COVID but traditionally the rental market is segmented in short-term rentals (think of Airbnb) or long-term rentals. Short-term you just find your own tenant and they prepay for the lease. I ALWAYS prefer Airbnb as they have a guarantee program if the tenant doesn't leave or damages your apartment, you have up to $1 million guarantee. It's the safest way. Even if the tenant prepays the entire lease in cash, they could still overstay the lease and it's difficult to get someone out of your place once they are in due to crazy tenant laws there.

Long-term leases can also be done via Airbnb but in many cases, you would just have a realtor find you a lease. Typically a realtor will change you 1 month commission and the leases I've done are 12 months to typically 24 months. I put an inflation clause in if the amount is not in US dollars. Most locals don't want to use US dollars for the rate so you have to put a maximum cap on the inflation %. Again, even if you have a lease doesn't mean they will leave. So typically that tenant would need to find someone to sign as a guarantor that will promise that if they don't leave at the end of the lease, you can go after that guarantor's property. The guarantor has to put up one of their properties they own free and clear.

I believe now you can also buy some kind of policy from a bank. In the past, I've rented to large corporations and the companies have signed as a guarantor promising if their employee stopped paying, they would pay. I've done that with Exxon a few times with properties I've owned.

 

[PaulBee]

I gather that COVID has made short term rentals difficult, especially in strict buildings. I am open to a bank as a guarantor, which might be appealing to foreigners. I am thinking foreigners are more likely than locals to rent my apartment furnished and equipped, which would be a bonus for me.

 

[PaulBee]

I am now offering the apartment for the same price (80,000 pesos/monthly plus about 16,000 expensas) but now: fullly furnished and equipped. If interested please act fast. I have some one who want the place unfurnished, but I prefer that the furniture stay.

 

[PaulBee]

The apartment has been rented long term. Thanks for your input everyone !