South American Real Estate News

New Property Regulations will affect Buenos Aires Landlords in 2014 involved in short term vacation rentals who are working outside the law.

Post available in: English

Avenida-9-de-Julio-Buenos-Aires-Argentina1-300x2252014 looks at a new fully operational law targeting the current increasing supply of temporary rental properties aimed at tourists in Buenos Aires. The transactions are not currently regulated for those who currently rent out properties in Buenos Aires  the tourism market but they will soon be monito red and supervised.

Currently, according to estimates, Buenos Aires offers 6,000 to 20,000 beds in the category of temporary tourist rentals which damage the competitiveness of registered hotel beds. The continual growth of temporary rental without any regulation linked with the widespread tourism crisis, has had a huge impact on the hotel sector.

A unanimously approved law was established by Deputy Fernando de Andreis, although written by the Minister of Culture and President of the Tourism Authority as well as representatives of the hotel industry, in part as an attempt to end the unfair competition with the hotels.

The law has two divisions on which it focuses on; the owners or marketers of buildings with rental units for short periods of time and individuals who lease more than three apartments that they own. If a landlord owns three of less apartments they are exempt from this regulation and may adhere voluntarily if they wish. For the other two sections; if it provides accommodation to tourists in furnished housing for a period of between a night and six months, it is now defined as a hotel service and must comply with the new rules.

The new law affects the owners, beneficial owners, cessionaries, attorneys, and those who administer, manage, exploit of commercialise under any title, of the regular temporary rentals aimed at tourists in Buenos Aires.  Those who are involved are jointly responsible for the registration, fee payment, the honesty and accuracy of the registration documents. The landlord must lay out in the form of an affidavit; amongst others, the compliance with registration, safety standards, technical-constructives as well as references to people with disabilities or reduced mobility. Following the Buenos Aires laws it must include the:

  • registered number of bookings
  • advertising
  • contracts and forms
  • inform the guest of services provided
  • the conditions and rate of stay
  • would notify the transfer
  • the sale or assignment of the property
  • change of destination or termination of destination for this service

would include printed material with the;

  • conditions and politics of the offer
  • current prices
  • evacuation plan in case of fire or emergency
  • informing the tenant on the joint ownership regulation standards, amongst other things.

Some buildings will be assimilated in the category most appropriate to the services they offer, such as hotels. Of which according to statistics from the hotel sector, there are at least 51 buildings of this type in the capital. They will be audited by the Government Control Agency responsible for audits and qualification ratings.

Meanwhile, the owners or marketers of four or more independent units will be required to enroll in a registry of Temporary Tourist Rental Properties, which will be created and administered by the Tourism Authority of the City.

All registered properties may be included in the official advertising, broadcast programmes, deals and promotions by the government and receive information, help and advice from the Tourism Authority to adjust their trade policies to ensure a better service. In turn, the law will also favor tenants as it formalizes the activity and requires a certain level of quality in order to protect customers.

From the introduction of the law, those affected will have 90 days in order to regulate. Failure to comply with the provisions of this law will revoke any benefits granted and if applicable have the license and registration removed.  The enforcement authority is the Tourism Authority of Buenos Aires, which among other duties may act on complaints of breaches of registration or inaccuracies regarding the establishment tourist information.

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Post available in: English


Comments from our readers

  • GTSA says:

    Many owners have been renting out apartments of poor quality and misleading descriptions. Not only this many have not being paying taxes on the income plus many are renting out properties for short term rentals in buildings that are not zoned to do so putting the renting clients at risk. We have a team that can help you regularize your situation if you fit into this category. Contact Marcia

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