Uncertainty: New Rent Law in Argentina

The new Rent Law in Argentina is awaiting approval, causing uncertainty among both landlords and tenants.

While the modification to the Rent Law in Argentina was approved last week in the Chamber of Deputies, the Senate failed to issue a verdict.

The rental sector in Argentina is eagerly awaiting progress, but the ruling party has called for a “broader” debate, while the opposition accuses them of “delaying” the issue.

Senate blocks anticipate the passage of a new Rent Law in Argentina later this month.

In the meantime, according to data from INDEC, there are 2,048,000 rented households, and some media outlets estimate that between 60,000 and 65,000 rental contracts may be annulled each month.

Since July, the first contracts signed under the current Rent Law in Argentina have started to expire, making renting or even renewing seem like an impossible mission.

The situation is worse in Buenos Aires, where more than 10,000 contracts are set to expire at the end of the month.

“Rentals in the country are marked by the scarcity of available properties in most provinces.

New Rent Law in Argentina: Uncertainties

This scarcity has been steadily increasing since the current legislation was implemented,” says Emilio Caravaca Pazos, President of the Argentine Real Estate Federation (FIRA).

Since the potential changes to the Rent Law in Argentina were discussed in Congress, there has been a climate of total uncertainty among both property owners and tenants.

Among the main changes to be addressed in the law, it was stipulated that lease contracts would revert to two years instead of the current three.

Additionally, it was established that rent increases would no longer occur once a year but could be made at intervals of 4 to 12 months, as agreed upon by the parties.

According to the current Rent Law in Argentina, these increases are calculated using an index that combines changes in salaries and inflation (RIPTE and IPC).

The aim of the law was to provide something that is currently lacking: greater predictability for tenants by extending the lease term and setting a method for rent adjustments.

After 12 months without changes, Argentine tenants are facing a significant monthly rent increase of 112.9% in September 2023, marking a new record.

According to the current law, the amount will vary each year, largely reflecting the inflation index, which has surged this year.

Also read: López Obrador’s Remarks on Rising Crime in Guerrero.