The elected president, Javier Mileiannounced his first economic measures this Monday and said that his idea is repeal the Rental Law so that contracts can be freely agreed upon.
The libertarian stated that this norm we must “repeal it and understand that it is a contract between parties.”
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“The only thing the Rental Law has done is cause damage. «He ended up harming those he intended to protect,» said the leader of La Libertad Avanza in statements to Miter radio.
Milei also stated that the contracts They can be agreed “in any currency.” “Monetary freedom is part of the things we want to advance,” he said.
What the current Rental Law says
On October 11, the Chamber of Deputies obtained the approval of the reform of the Rental Law which was sanctioned in June 2020. On that occasion, Milei, who is a national deputy, voted against the modification.
The standard provides that the contract duration is by three years. Furthermore, that the Price Update will be every six months, based on the application of Own House index. It also regulates that contracts must agreed upon and advertised in pesos.
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How rent increases are calculated with the Casa Propia index
With the new law, the tenant must consider the Own House index to calculate the rent increases applied per semester. This formula takes into account the lowest indicator between the average of the salary variation of the last year and inflation average from the same period
The tenant must enter the page of the Ministry of Development and Habitat and to carry out the calculation they must:
- Take the values of Own House coefficient of the last six months;
- Multiply the six monthly values among themselves;
- And to that result, multiply it by the current rental fee.
- The final calculation will be total amount to pay during the next semester.
The five keys to the Rental Law
Below are the main key points of the law 27,737:
- Minimum of three years of location.
- Contracts must be made in National currency.
- The settings are every 6 months.
- For the Price Update applies the Own House index: the measurement of the lowest index between the Salary Variation Coefficient (CVS) and the Reference Stabilization Coefficient (CER).
- The advance payments for longer periods.