In a market that specialists say is already dollarized, tenants have more and more problems finding a home
By Marysol Anton
07/08/2022 – 08,15hs
If you are one of the few who dare to list your property for rent, then seriously consider the idea of doing it through a real estate agent. Surely it will cost him as much to find one that wants to take the property as determine the value of the rent that should be charged.
What’s happening? Realtors are avoiding taking properties to rent. They say it’s because it does not give them significant income, but it does bring a lot of headaches for those who have to deal with customers.
“While in Argentina they discuss what is going to happen to the economy, the subsidies, the adjustment and the agreement with the IMF, the tenants add more problems to their day to day,” warns the real estate broker Oscar Puebla.
Today the situation of the tenants is more worrying than a month ago. “Due to the economic uncertainty we are experiencing, the owners ask more and more requirements to rent, and they are impossible to fulfill. Not to mention those who intend to charge in dollars, and in cash,” adds Puebla.
This is the great obstacle for real estate companies today to work on rentals, which they avoid by all means.
Rent, only one problem
What happens is that Although the rents for housing are in pesos, the temporary rental market is in dollars, and leave a much more tempting 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 sectors call for an urgent change in the rental law
“Then, the northern corridor, from the City of Buenos Aires and also in the province, is completely out of range for Argentines looking for a house in that area. And the possible places continue to shrink,” explains Puebla, while demanding that the rental law be urgently repealed.
Miguel Di Maggio, director of the real estate company Depa, agrees on this, pointing out that today 60% of the real estate rental market is dollarized“.
“On the one hand, by interpreting this situation, one can come to understand the owner. The owner of a property does not want to be outdated and lose against inflation. A property that is rented today at a value, in four months it will be have a completely outdated price. Because there are five percentage points (or more) of inflation, and the owner when raising rents pays attention to that,” explains Di Maggio.
And he adds: “In February, the annual update was 47%. And today we are at 60%. Those 13 percentage points are transferred directly to the rental price. In relation to this, we see how in the last four weeks it accelerated the rise in rental values as a result of the soaring dollar.
Rent amid inflation
“Given the socio-economic context and the indifference of legislators regarding a rental law that has a degree of inequity never seen before, real estate brokers find ourselves not only facing a difficult dilemma to resolve in order to fulfill our role, which is based in the preservation of rights between landlords and tenants, but also conditions us before the provision of the housing rental service that does not end up resolving the housing deficit either,” says Marcela Capdevila, real estate consultant.
“This is the real cause of the problem, the housing deficit, and that is what most affects consumers. And nobody is thinking of solutions, not even in the long term,” adds Capdevila.
Many assure that the real estate market is effectively dollarized
Puebla brings the issue of inflation as one of the points that adds seriousness to the reality of the tenants.
“The level of inflation is inversely proportional to wages, which cannot follow the Consumer Price Index (CPI), and so the rents every day escape a little more“, the specialist is alarmed.
“The real estate market is completely crazy. 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 properties for rent, because we do not validate the demands of the owners, which we consider to be out of place. It is a really worrying moment”, says Puebla.