Renewing 2 yr rental contract and deposit.

[nlaruccia]

I'm in the process of renewing my two year rental agreement with the landlord. I paid $1000 pesos for the first year and $1,200 pesos the second year and gave her a $1,000 pesos deposit. I'm planning on renewing the contract and she wants to update the deposit amount. I'm not sure that it should not stay the same amount. If I were to leave now the initial $1,000 deposit would be worth more than due to inflation. She wants me to pay $600 more and would end up with a deposit total of $1,600, the value of the rent the second year. I was thinking of telling her no, because then at the end of two years that $1,600 will be worth around $2,000 and I don't think she'll want to return that much to me. Does anyone know from any inmobiliaria if people renewing their two year contracts are also updating the deposit amount?

 

[AngelinBA]

Every time I've renewed our rental contract (3 renewals in the same apartment now) I've had to update the amount of the deposit to be the same as a month's rent in the second year of the contract.
It seems pretty normal to me.

 

[scarface]

If I were to leave now the initial $1,000 deposit would be worth more than due to inflation.

You lost me.

 

[Davidglen77]

All non-temporary rental contracts, upon renewal are treated as a new contract. Therefore, you have to increase the deposit amount to reflect the new rental amount. And if it is a multi-tiered contract, in other words, if the contract ends with a higher rental amount than it starts with, you will have to increase the rental security deposit for the highest rent stated in the contract. Inflation is not a factor here. Security deposits reflect highest monthly rental payment. Period.

 

[nlaruccia]

What's odd is that my current security deposit reflects the rent paid in the first year, not the elevated amount of the second year, which the owner is asking for now. I called an inmobiliaria thinking they wouldn't give m information if I didn't want to contract their services to look for an apartment but was surprised when I was told that the security deposit should reflect the rent in the first year. I think it will come down to negotiating. I'm thinking of signing the contract in fron of an escribano this time since apt. owners here are often sneaky and untrustworthy.

 

[mkj52]

And so are tenants too sometimes!!

 

[Bajo_cero2]

Well, she was nice not asking you to update the deposit, so, don t complain. What she asked is normal, according to law and reazonable. Regards

 

[nlaruccia]

She does want me to update the deposit amount. Did I mentioned that the consorcio is in the middle of a lawsuit? She owes them a lot of money.

 

[Bajo_cero2]

I ment that she was nice not asking you to update the deposit after the first year.
If she want that you update the deposit now, that s ok.

The consorcio has othing to do with your contract, once you sign it, the consorcio cannot evict you.

Regards

 

[John.St]

I'm in the process of renewing my two year rental agreement with the landlord. ... If I were to leave now the initial $1,000 deposit would be worth more than due to inflation. She wants me to pay $600 more and would end up with a deposit total of $1,600, the value of the rent the second year. I was thinking of telling her no, because then at the end of two years that $1,600 will be worth around $2,000 and I don't think she'll want to return that much to me. Does anyone know from any inmobiliaria if people renewing their two year contracts are also updating the deposit amount?

Read your contract. It probably says one month of rent as a deposit, which is common.

How AR$ 1,600 should be worth AR$ 2,000 because of inflation is beyond me, in a year AR$ 1,600 will still be AR$ 1,600 but because of the non-existing inflation the present day value will be around AR$ 1,250 (the amount of goods you can buy today for AR$ 1,250 will cost 1,600 a year from now).