The debate around the law

The criticism and support of the rent law sanctioned in June 2020 occupied a large part of last year’s agenda and gained more force when the presidential spokesperson, Gabriela Cerruti, assured at the end of November that the Government was thinking of a modification. While waiting for a definition, owners and tenants, with totally opposite diagnoses, are preparing to fight in Congress, although in principle the debate would not take place in the next special sessions.

Legislative sources advanced to PageI12 preparing a proposal for the formation of a special commission of opponents and ruling party to advance in a project “surpassing what is“From the group Inquilinos Agrupados they assure not to have been summoned.

Both parties admit that the effects of the law were not as desired. While the real estate companies attribute to the law regulations the lack of supply that pushes rent prices to rise and for this reason they ask to repeal it, the tenants assure that the real problem is in the lack of price regulation of the new rentals.

Tenants

Gervasio Muñoz, president of the National Federation of Tenants and one of the main public defenders of the law, responded sharply to the consultation of Page I12: “It is not the rental law, but what is lacking to regulate. The rental price must be regulated at the beginning of the contract. And since the real estate market knows that it is the next step, it needs to repeal the law now, urgently,” he said. . “The law was an advance and now is the time to regulate what is missing, which is the initial price and implement a strong tax on idle housing,” he added.

Muñoz assigns the State the responsibility for this lack of control: “While food represents 10 percent of wages, rent represents, out of the 9 million tenants, between 40 and 50 percent of income. The State has to recover its role in the measurement and control of the housing rental market“, he raised after a meeting with the Secretary of Commerce, Roberto Feletti, where they exchanged ideas about the housing rental market and the situation of tenants. Gervasio Muñoz, indicated that, like food, the rental price represents a fundamental expense between tenants and therefore has to be part of the agenda of the Secretary of Commerce.

Owners

From the real estate attribute to the law a discouragement on the offer that is pushing rent prices up. A report carried out by the private portal Zonaprop ensures that there are 15 percent fewer rental notices than in 2020, and 25 percent less than in 2019. The complaints of the owners are mainly the duration of the contract, although also in the background they criticize the flexibility of collateral presentation and the Obligation to present contracts in AFIP. With this diagnosis, they pressured to repeal the norm, which would mean returning to the previous situation, without regulations.

Current law increased the minimum rental term from two to three years and established greater restrictions for owners to terminate the contract. These conditions generated that one of the main demands of the owners is to return to the two-year contracts. For the Tenant Federation, the three years were a breakthrough.

With the new law, the tenant must grant up to two possible guarantees, which can also be a bank guarantee, surety insurance, surety bond or a personal guarantee of the tenant such as a salary receipt, income certificate or any other means. Finally, the regulations establish that all contracts must be declared before the AFIP, a fact that the owners denounce as a “new administrative obstacle when it comes to renting.”

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