2023-10-11 10:23:57
In a session that lasted almost 17 hours in the Chamber of Deputies, the ruling party celebrated a historic victory by achieving the approval of its own version of the reform to the Rental Law. The final vote took place following 5 in the morning, and marked a turning point in rent regulation. This new law became a fact that ended up accepting the initiative that came under review by the Senate, where the Frente de Todos promoted key modifications.
The approved initiative maintains the duration of rental contracts at three years, but introduces a significant change by reducing the minimum interval to update the rental price from one year to six months. This means that Rents may be adjusted more frequently, which has implications for both tenants and landlords.
The final vote reflected a slim majority in favor of the reform, with 128 votes in favor, 114 once morest and no abstentions. To achieve this majority, the Frente de Todos had the support of some deputies from the Left Front, while the Federal Interbloc and United Provinces were divided in their votes.
Among the members of the Federal Interblock, there were votes in favor of the initiative by Natalia de la Sota (Córdoba Federal), Enrique Estévez (Socialist), Mónica Fein (Socialist) and Alejandro “Topo” Rodríguez (Identidad Bonaerense). However, Graciela Camaño (Bonaerense Identity), Carlos Gutiérrez (Córdoba Federal) and Florencio Randazzo (Bonaerense Identity) voted once morestand Ignacio García Aresca from Córdoba was absent from the vote.
In United Provinces, The Together We Are Río Negro bloc was divided, with Luis Di Giácomo in favor of the project and Agustín Domingo once morest. On the other hand, the two deputies of the Missionary Concord Front, Carlos Fernández and Diego Sartori, aligned themselves in favor of the ruling party’s Rental Law, maintaining cohesion in their vote.
The approval of this law occurs just 49 days following the opposition achieved half-sanction in the Lower House with a proposal that sought to reduce the duration of rental contracts to two years and index their values quarterly, allowing more frequent adjustments without fixed indicators. However, The opposition majority failed to maintain its position in the Senate, where the ruling party pushed for key modifications to the project.
Rentals with new law: what it is regarding
This new Rental Law maintains the three years of contract duration, but establishes a minimum interval of six months for updating prices, contrary to the regulations that were in force that allow up to a single update per year of the rental value.
While, The «Own House» coefficient is established as an index for updating the price.used by the Ministry of Territorial Development and Habitat.
It will be “made up of the smallest variation that arises from comparing the average of 0.9 of the variation in the Salary Variation Coefficient published by INDEC, and the variation in the Reference Stabilization Coefficient published by the Central Bank of the Argentine Republic.
Furthermore, the text of the approved standard clarifies that the price of the contracts must be established in national currency, Just as the of the price of real estate rentals cannot be expressed in any currency other than pesos.
A tax incentive related to the monotax is also incorporated, by providing that “Income coming exclusively from the rental of up to two properties will be exempt from paying the monotax.”
On the other hand, the exemption of Personal Property for properties intended for rental for residential housing is maintained, the exemption from the check tax for those savings accounts or checking accounts “used exclusively for operations inherent to the activity of leasing properties for residential purposes, whose contracts are duly registered.”
Meanwhile, another benefit was reflected according to which «The parties may deduct from the Income Tax the sum equivalent to 10% of the annual amount of the lease contract.
Rentals with new law: what the debate left in Deputies
The debate on the Rental Law began at 4 in the morning, when the deputies had already been in session for almost 16 hours.. In reality, the discussion of the initiative was scheduled for later according to the agenda approved in Parliamentary Work, but the presidents of the blocks agreed to advance the discussion.
The person in charge of introducing the topic was the president of the General commission, Lucas Godoy (Frente de Todos), who stressed that there is no “an equal relationship” between the two parties to the rental contract, so the regulations had to “legislate to balance the conditions of the contracting parties.”
«I’m not talking regarding there being good and bad; “What there is are asymmetries”he clarified regarding it.
After acknowledging that the law approved in 2020 as a result of the transversal agreement did not give the expected answers, but explained that The uncontrolled increase in rental prices and the reduction in supply responds to other phenomena that have nothing to do with the text of the regulation itself.
In this sense, he focused on the growth of temporary rentals and the inflationary logic that runs through all prices in the economy.
In turn, PRO deputy Pablo Tonelli, as a reporting member of the minority opinion, explained the reasons why, in his opinion, the original law 27,551 failed, which particularly harmed tenants given that “caused a huge decline in rental housing.”
«At the time the law was passed, the supply ranged between regarding 7 thousand and 8 thousand supply units; Today the supply has been reduced to well under a thousand. Today it is in the order of 500 units. This clearly harms tenants and, given the scarcity of supply, prevents them from negotiating the terms of the contract on equal terms.«he explained.
For the macrista, this negative balance has as its origin «the alteration of the balance between the parties«.
«And the truth is that we must conclude that Law 27,551 altered that balance and with the intention of protecting tenants, it ended up harming them.«, he expressed.
Then Tonelli warned that the law coming from the Senate, which he described as a copy of the current law “with minimal makeup,” will “affect the profitability of landlords, and we have already seen what happens when this happens.
«What is reasonable, what is sensible then, if we want a different result and return to a normal situation and for the supply to expand, then that is what “Let us insist on our sanction, which is what we promote in our interblock.”concluded the opponent of Together for Change.
For his part, the deputy of the Frente de Todos Itai Hagman flatly denied that “the existence of a rental law was the cause of all the problems in the real estate market.”
According to him, in the city of Buenos Aires the rental offer is increased until the first quarter of 2022, and only then did a fall begin to occur, which chronologically is located following the sanction of that Rental Law called “Lipovetzky”.
At your turn, Alejandro Cacaceargued in favor of establishing two-year contracts and not three, pointing out that the Argentine situation is very different from that of countries like Germany, which ““It is a country that has stability and does not have inflation.” and therefore “there would be absolutely no problem in having three-year contracts, even longer.”
«What happens is that here we have 12% inflation (monthly) and accelerating. When one fixes the contract for 3 years and cannot update it, this uncertainty causes the owners to withdraw the properties, sell the properties, transfer them to temporary rental or try to make more frequent updates«he explained.
The last speaker was the deputy of the Frente de Todos Paula Penacca, who interpreted as a “fallacy” the theory according to which “the rental market worked well and this law broke it.”
In that sense, the Camporista legislator stated that “The law is not the problem” that causes rent inflation, but rather it responds to the more general context of the inflationary acceleration that was unleashed in 2018 when an “annual devaluation of 100%” was reached.«.
“Therefore, the expectations of owners and real estate agencies do not coincide with what they manage to earn,” he explained. plume.
«There is one last fallacy, which is a free contract between equals; It is neither a free contract, nor is it between two parties, because the real estate agencies are in the middle. and that this inequality is manifest, because people who have to look for a place to live cannot choose not to rent,” he added.
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