Short term rentals

It is understood that short term rentals are those that are made for a period of less than six months “for tourism in areas suitable for such a fate,” as stipulated by the Law on Filming Urban, No. 23,091 known as ” Rents Act. ”

The large influx of foreign tourists in the decade that passed created a demand for holiday rentals that energized the real estate market for this product and showed a tendency to enhance certain areas of the city for its development in relation to tourism, recreation and cultural offering.

However, behind this confusion opportunity to start from the loopholes and free interpretations of the standard and to make the Rent a questionable activity arises.

The Rents Act provides that the minimum period for locations for housing is two years. However, the rule provides an exception may extend to six months the locations of homes with furniture for tourism purposes. Moreover, the Horizontal Property Law 13,512 provides that only may allocate functional units from one building to the uses provided by the Joint Ownership Rules and Administration. That is, in short, means that if a property is offered furnished, is used for a location for tourism purposes, provided it is not that forbidden in the regulation of joint use, may enter into a lease of the temporary rate, less than six months’ time.

However, these laws such rents still falling in the free interpretation of seemingly basic questions as regards to “home”, through which the uses allowed in the regulations define ownership.

Maybe a milestone that will make a difference to the development of this activity in the future is the recent decision of the Civil Court regarding a case brought by a consortium of an owner of a department which allocated the property to rent. The ruling interprets the “housing” refers to the place where the permanent address, not the “shooting and subsequent occupants inn various passengers.”

It is worrying that under these conditions marked deregulation is a growing practice. Even with the lower tourism in 2009, numerous departments offered in temporary rent.  The values ​​start from u $ 1,350 per month and go up to u $ 5,000, including in those cases varied services comparable to those offered by an apart-hotel, from classic amenities -pool, SUM and solarium- up services weekly cleaning, telephone and internet.

Although presumably represent a high yield, superior to the traditional locations of two years; it should be noted that the units have high fixed costs for services including. In addition, by providing temporary rent apartments, the owner runs the risk of higher expenses for sporadic vacant during the year, it may be only a few days between a contract and another, or months.

Whereupon an option for tenants offering this product is placed on the rental market several temporary housing units, ensuring a minimum flow of money to enable them meet these fixed costs.

In summary, short term rentals are presented as a tempting option for the rental market, but should be analyzed and considered financially rights and regulatory restrictions for each case.


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