Rent Increases

[citygirl]

I'm interested in people who have long-term rental contracts. If you are paying rent in dollars, did your rent go up the 2nd year? If so, how much?

I know standard if you have a contract in pesos (guarantia, etc) is that the rent goes up 15-20% in the second year. What are people experiencing if they have contracts in dollars?

 

[bloody_bloo]

What I can tell is that offer is growing and many people are moving out due to increased rentals. In sum, there are many new flats entering the market, so speculating I think rental fees will freeze. It's just my opinion.

 

[jp]

In the last year, the dollar has increased in value by nearly 25%. I'd say any rent increases were pretty unjustified based on this, and you could probably use the change in exchange rate as leverage.

 

[citygirl]

In the last year, the exchange rate went from 3.68 to about 3.9 as of today.

They are asking for a 10% increase in rent. However coupled with the change in exchange rate, it is really about a 17% increase which seems high to me. But at the same time, I know 20% is standard when you have a contract in pesos so I'm just not sure how much negotiating power I have.

 

[SaraSara]

In my experience, BA is getting more expensive in dollar terms - the exchange rate is falling behind local inflation rates.

Do you pay expenses and taxes on top of the dollar rent?

 

[Popper]

I signed a two-year contract and it dictated that the rent would increase 10% in the second year. It is fixed to a US Dollar amount and I pay the equivalent in pesos.

 

[citygirl]

Popper - thanks, so 10% for you as well.

Sara - I pay apt expenses (cable, internet, electricity) but not building expenses.

 

[SaraSara]

Building expenses (gastos comunes) have gone up quite a bit in some buildings, so maybe part of the increase is due to that.

I know people who have rentals, and would like to raise rents 20% to cover their expenses. They are afraid of doing it because right now there are more apartments than renters. It's a renters' market, so you would be in a strong position to negotiate.

 

[citygirl]

Yes, I know the building expenses have gone up quite a bit so that is the reasoning behind it. 10% seems like a fair increase but again, due to the fluctuation of the dollar/peso, it is really a 17% increase which does seem high. However, I really like the apt/owner and I am happy here.

I just am concerned that if the peso continues to drop against the dollar (and I think it will) that 10% plus change may wind up being 20% or more in a year.

 

[SaraSara]

The dollar is lagging badly behind inflation. Three years ago the cleaning woman charged US$ 85 - it is now US$145.

I'm a little confused: if your contract is in dollars, why should the exchange rate be a problem?