By high inflation now rents are adjusted every six months
July 7, 2014
Holiday in Buenos Aires rose 25 percent last year, below inflation in Argentina’s capital during the same period, from 39.5%, according to official data, but landlords and settings locatorios agree to not affecting the supply of housing.
According to the Law of Rentals, values must be kept fixed for 24 months or 36 months for housing trade contract, but “there is a relevance to what the law says with an inflationary situation, so the market found a formula that is agreed for global lump sum, ie, secured by a fixed total amount of 24 months total, but while adjustments are agreed from the seventh month, and instead of a year, which was what was being done, it is updated every six months, “explained José InfobaeTV Rozados, director of Real Estate Report, in dialogue with Luis Novaresio.
Thus inflation is seeking to cover for the contract deal for both parties: the tenant who can pay, and the landlord so you can have an income.
“In a lease, the logic is that to keep it, you must agree to both sides, one for live and the other to supplement their income or other needs. Common sense is basic to the lease for that people can get a room, “said the expert.
“Today’s rental market is generally balanced. One can say that in the neighborhoods where they built increased supply and demand, but lack good deal in the southern suburbs. When you leave a good property quickly rented. That makes prices tend to be equated with what can be in Chacabuco Parque Palermo and another in the northern corridor, “said Rozados.
The director indicated that Real Estate Report “for market garages warns a structural problem, because there is a mismatch between the amount of parking available and the number of cars, so they imposed increase the supply of parking spaces is namely the question goes through planning, to address a sensitive issue for the City. “