Wed. Sep 27th, 2023
    The Rental Law: Challenges and Abuses in Argentina

    Guillermo Reybet, Vice President of the College of Auctioneers and Public Brokers of Neuquén, expressed that the Rental Law has generated more problems than solutions, but it is still in effect and must be complied with, whether we like it or not. Reybet urged all users to report any abuse or irregularity when signing a rental contract to the relevant entity.

    According to Reybet, one of the main issues detected is the charging of fees above what is established by law. In accordance with the law, real estate fees should be 3% of the total rental amount, but they cannot exceed the equivalent of one month’s rent. However, there have been reported cases of charging 5% of the rental amount, which is not in compliance with the law.

    Another abuse that has been reported is the attempt to implement semi-annual adjustments, while the law establishes annual adjustments based on the government’s published index. Additionally, some real estate agencies disguise permanent contracts as temporary ones to evade the restrictions of the Rental Law. It should be noted that temporary contracts cannot exceed three months.

    Despite the issues caused by this law, Reybet pointed out that it is still in effect and therefore, licensed real estate agents must work within its regulations. However, this has led to the withdrawal of many properties from the market, resulting in a significant increase in prices and difficulties for tenants in finding available offers.

    Reybet remains hopeful that Congress will take steps to modify the law and reactivate the market with more available properties. In Neuquén, one of the consequences of this law and other factors, such as strong immigration, has been a significant decrease in the supply of housing. Currently, the main classified websites have around 4 or 5 rentals available each, in a context of high housing demand due to the constant arrival of new residents to the capital.

    Sources: Interview with Guillermo Reybet on LU5.