In a market that experts say is already in the dollar, tenants are having more and more problems finding homes.
By Marisol Anton
07/08/2022 – 08,15hs
If you are one of the few who dare to list their property rent, then seriously consider the idea of doing it through a real estate agency. Of course it will cost you both the one who wants to take the property and the rent to determine the value of what you should charge.
What is happening? Avoiding renting out realty property, They say it’s because It doesn’t give them significant income, but it brings a lot of headaches. For those who have to deal with customers.
“In Argentina as they discuss what is going to happen with the economy, subsidies, adjustments and agreements with the IMF, tenants add more problems to their day to day,” warns real estate broker Oscar Puebla.
The condition of the cultivators today is more worrisome than a month ago. “Due to the economic uncertainty we are experiencing, Owners ask more and more requirements for rent, and they are impossible to meet, Not to mention those who intend to charge in dollars and cash,” Puebla says.
This is one of the biggest hurdles for real estate companies today in renting, which they avoid by all means.
Rent, only one problem
what happens that Although rents for housing are in pesos, the floating rental market is in dollars., and leave a much more lucrative return. While a traditional rental leaves an annual profit of 4% in pesos, a temporary one leaves 9% per year and in hard currency.
All regions demand immediate changes in rental law
“Then, The northern corridor, from the city of Buenos Aires and also in the province, is completely out of bounds to Argentina. Looking for a home in that area. And potential locations keep shrinking,” Puebla explains, while calling for immediate repeal of the rental law.
Miguel Di Maggio, director of real estate agency Depa, agrees, stating that 60% of the Real Estate Rental Market Today Is Dollarized,
“On the one hand, by interpreting this situation, one can understand the owner. The owner of a property does not want to be old and lose against inflation. A property that is rented out at a price today, will be due in four months. A completely outdated price. Because there’s five percentage points (or more) of inflation, and the owner pays attention to that when raising rents”, explains Di Maggio.
And he adds: “In February, the annual update was 47%. And today we’re at 60%. Those 13 percentage points are transferred directly to the rental price. In relation to that, we see that the last four weeks How this accelerated in the rise of rental values as a result of the rising dollar.
rent amidst inflation
“Given the socio-economic context and legislators’ indifference to a rental law that has a never-before-seen degree of inequality, real estate brokers are finding it difficult to solve not only our role The dilemma is faced, which is based on the protection of rights between landlords and tenants, but even before the provision of housing rental service gives us conditions that do not end in resolving the housing deficit,” Marcella Capadevilla, real estate consultant.
“That’s the real cause of the problem, housing shortage, and this is what affects the most consumers. And no one is thinking of a solution, not even in the long term,” Capdevilla says.
Many are convinced that the real estate market is effectively dollarized.
Puebla brings The issue of inflation is one of the points that adds seriousness to the reality of tenants.,
“The level of inflation is inversely proportional to wages, which may not follow the Consumer Price Index (CPI), and therefore Rent saves a little more every day“, the expert is worried.
“The real estate market is completely insane. Of course, tenants are looking for a home at any cost. But those of us who work in this industry have decided not to take property on rent, because we are the owners. demands that we consider unreasonable. It’s a really worrying moment”, says Puebla.