May 27, 2022 12:09 pm

They open the discussion on the rental law, with differences between owners and tenants

Two months after the promise to promote a new project to replace the rental law, the Government convened the first meetings with the intention of seeking common ground between tenants and owners. Last week, the Secretary of Commerce of the Interior, Roberto Feletti held a meeting with the Argentine Real Estate Chamber in which he assured that the situation of the tenants is “very precarious” and summoned a work table with all parties to facilitate an agreement in principle. He had done the same before with the Tenants Association. For now the differences prevail.

During the meeting, in which the Undersecretary for Policies for the Internal Market also participated, Antonio Mezmezyan, The shortage of supply of goods for rent and the oversupply of properties for sale were analyzed, added to the impact of temporary summer rentals. For Alexander Bennazar, president of the Argentine Real Estate Chamber (CIA), the meeting was “very positive” and commented to THE NATION that from the technical team of the Government is trying to activate “the entire rental offer”.

On creating a new project, Mezmezian acknowledged that “It is not easy to modify the law and make everything work again”. The modifications proposed by the Chamber focus on the reduction of rates and taxes, such as gross income, the terms of the contracts and that it be considered aalternative index, that does not add inflation”, to adjust rental prices. The current law considers an annual increase that adjusts to the Consumer Price Index (CPI) and the Average Taxable Remuneration of Stable Workers (RIPTE), through an index prepared by the Central Bank. “The jump is 52% in one year and in one go, there should be at least two annual adjustments,” he argued.

Gervasio Munoz, President from Federation of Tenants, it was shown critical with respect to the projects that propose “that there be no indices to update the rental price and shorten the time between inflationary adjustments”, because he considers that it would take away the predictability of the agreements.

In his opinion, the insistence on modifying the law is the product of the “real estate lobby”, but “No modification will be to improve the situation of the tenants”.

He indicated that they were the ones who asked Feletti to set up a work table 15 days ago when they met with the secretary, and that His claim focuses onboth the market and the real estate companies respect the current law” approved by the Chamber of Deputies in November 2019, during the administration of Mauricio Macri, but which ended up being sanctioned by the Senate in June 2020, under the presidency of Alberto Fernandez.

The formula for updating rents applies to contracts signed after the enactment of the lawRicardo Pristupluk

The objective with which the law was promoted was to “protect the tenant from abusive conditions”, and for this different articles of the Civil and Commercial Code corresponding to the rental of houses. Among the changes, the extension of the duration of the contracts to three years stands out; the need to compulsorily register them in the Federal Administration of Public Revenues (AFIP); and the preparation of an annual updating index made up in equal measure by the CPI and the RIPTE, prepared by the BCRA each month.

One of the main criticisms of real estate is that the modifications stipulate a fixed price for three years that can only increase once a year, which translates into a loss of profitability for the owners. While the tenants see this as something positive due to the ability to foresee their economy.

Through Law 27,551 in 2020, the so-called “rental law” was approved, which only a year later would be questioned and the possibility of repealing it would be debated. In November the president of the Chamber of Deputies, Sergio Massa He assured that the law “failed” and promised that the Government would work on a new law that takes into account the requests of both parties. The debate was suspended for a period of 180 days until a new standard is drawn up. But after more than 60, there are not many news and the project for a new law was not included by the Executive Branch in the agenda of special sessions in February.

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