short term rent in dollar or pesos?

[Ceviche]

I was just trying to figure out what is the latest law? Is short tern rent for rentals (2-3 months) paid in pesos or dollars as per afip?

Secondly, wanted advise.

I have been staying at the same place for 4-5 years now.love the apartment and the landlord. Just used to the apartment and neighborhood. So don't like to change it.

Last year in April -May 2011, I paid 1300 us$ for it.

This year, for August -October), he is asking me 1700 us$. Do you agree its a big hike .

yes, inflation is there. But the blue dollar exchange rate is sky high. So he is anyway gaining, rite?

How much I should negotiate with him keeping inflation in mind since April 2011.

Thanks

what do you guys think?

 

[davonz]

Personally if it was me i wouldnt pay any more. In the last few months rental prices have been going down from what i have seen, and if you look on craigslist there is alot listed week after week because there isnt the number of foreigners coming here and renting like there was.
I got a apt in april, 35 sqm studio in palermo - plaza guemes, the landlord want US$700 i got for US$500, including all bills - cable tv/internet/gas/phone/electric.

If you look at what the peso has done in a year or so against the US$.

$4.20 last year.
$6.17 now in blue.

http://www.ambito.com/economia/mercados/dolar.asp

Inflation for a year is say 30% - so from last april until now around 40%, so that 4.20 peso last year is worth around 5.90 now in buying power. So with the blue rate at 6.17, he is doing ok, infact way better than ok, plus he gets your US$ which are as rare as hens teeth here at the moment.

If it was me i would either tell him same terms, or a better rate, no way would i be paying more.

 

[Tourist2008]

I don´t think there is anything to stop you agreeing to pay dollars, you just need to have "legal" dollars, ie be able to show where you got them from. If you are not an argentine citizen, then I suspect this would not be difficult and that they (AFIP) have easier fish to fry.

As to the rent, its a huge hike. I would say the norm would be around 20% in Pesos and 0-5% in USD. Have you gone several years without a hike? Thats the only objective reason I can think of for such a large increase.

Its possible that he has had a mortgage on the place which he has now had to convert to pesos at much higher rates. Dunno, I am just trying to think of reasons other than that he is just trying to pull a fast one.

Obviously, you like the place but have a look at what else you could get for the same price .... at the end of the day that will determine how much you´re prepared to pay, not whatever I might come up with

 

[joemama]

Tourism is down big time, and there are a ton of expats that have left in the past 6-12 months.

If anything the price should go down. Looking at craigslist recently, I've definitely noticed a decrease in pricing.

So, if I were you I'd start looking for another apartment. You most likely can upgrade - especially if you can pay in dollars.

 

[solerboy]

Personally if it was me i wouldnt pay any more. In the last few months rental prices have been going down from what i have seen, and if you look on craigslist there is alot listed week after week because there isnt the number of foreigners coming here and renting like there was.
I got a apt in april, 35 sqm studio in palermo - plaza guemes, the landlord want US$700 i got for US$500, including all bills - cable tv/internet/gas/phone/electric.

If you look at what the peso has done in a year or so against the US$.

$3.20 last year.
$6.17 now in blue.

http://www.ambito.com/economia/mercados/dolar.asp

Inflation for a year is say 30% - so from last april until now around 40%, so that 3.20 peso last year is worth around 4.50 now in buying power. So with the blue rate at 6.17, he is doing ok, infact way better than ok, plus he gets your US$ which are as rare as hens teeth here at the moment.

If it was me i would either tell him same terms, or a better rate, no way would i be paying more.

I think you are getting a little confused about your peso exchange rates, the rate this time last year was 4.14. The last time the peso was around 3.20 was in September 2008.

Time passes quickly, but not that quickly !

http://en.wikipedia.org/wiki/Historical_exchange_rates_of_Argentine_currency

 

[davonz]

I think you are getting a little confused about your peso exchange rates, the rate this time last year was 4.14. The last time the peso was around 3.20 was in September 2008.

you are right.. i meant 4.20.. old age i guess !!!

 

[Ceviche]

thanks.

what kind of hike is ok for him .

if April 2011, rent was 1300...what should it be now? 1500? at best?

 

[davonz]

if April 2011, rent was 1300...what should it be now? 1500? at best?

Are you paying in US$ or peso. Because thats makes a big difference.

If you pay in US$ 0% hike - and i would even look for a decrease.
In peso - most people i know here who pay in pesos have been paying 20% increase a year.

 

[Ceviche]

Sorry I made a mistake.

rent in jan 2010 was 1300

rent in Feb 2011 was 1500

And now in August 2012, he is asking for 1700!

the increase is even from that point of view but considering the blue dollar rate and decrease of tourists, I am not sure.

This is because the exchange was 4.0 in feb 2011 and now its 6.0. So it means a hike of 60% in terms of pesos!

I always pay him in dollar, upfront 3 month rent in one go!

 

[GS_Dirtboy]

Are you paying in US$ or peso. Because thats makes a big difference.

If you pay in US$ 0% hike - and i would even look for a decrease.
In peso - most people i know here who pay in pesos have been paying 20% increase a year.

That's correct. I just signed a contract for a new apartment and we pay in Pesos. After spending 3 months looking at apartments I can assure you that most landlords are building 22% to 28% increases into their second-year rent levels due to inflation. Don't know about Dollar-denominated rents.