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Housing


27 September 2017

ARGENTINA: New law makes it cheaper to rent in Buenos Aires

A new tenant-friendly law was published in the Official Gazette on 7 September 2017. 

The new low modifies the terms of the relationship among landlords, tenants and real estate agents in four key aspects: 

1.Real estate agent’s commission 

As of 20 September, tenants are no longer responsible for paying the real estate agent’s commission. Instead, the landlords will have to cover these fees which also, according to the law, cannot exceed 4.15 percent of the total lease contract value.

2.Administrative expenses

The real estate agents are no longer able to charge extra fees for administrative tasks or management of the property such as the certification of signatures and the obtaining of property ownership reports. 

3.Information to the clients 

Real estate agents must plainly and clearly display the rights of tenants on their websites, in their offices and advertising billboards.

4.Control and verification

The new measures will be controlled and verified by the City Housing Institute (IVC), which will be responsible for ensuring that the rights of tenants are respected.

How Does This Affect the Client?

The law should make it easier and more affordable to rent a home in Buenos Aires. However, some real estate agents argue that although the law will reduce entry costs for tenants, landlords will increase rents as a result of having to pay the real estate commission. This would effectively counteract the reduced entry cost because tenants would not be saving any money.

 

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