Overdue: The City of Buenos Aires hopes to cap broker commissions on rental contracts.

One of the biggest consumer rip-offs in the Buenos Aires real estate world revolves around broker commissions and deposits for rental properties.

While the Internet continues to revolutionize industries and circumvent intermediaries, the dinosaur known scientifically as Portena Rentus Apartamentata has continued to morph, persevere and garner fat commissions from those seeking rental properties.

So if you just heard high heels digging desperately into the perfectly-uneven sidewalks of BA, that was the reaction of thousands of local realtors to a long-overdue proposal that would slash these commissions and make rental properties more accessible.

Toward that end, some government officials are proposing a two-prong solution: 1.) Fix the maximum commission that a broker can charge at 3% of the value of the rental contract (down from the frequent 7-10% for a two-year rental) and 2.) Create a Banco Ciudad-managed Guarantee Fund to assist would-be renters who lack the resources to cover the entire security deposit necessary at contract signing.

Opponents quickly, and quite predictably, branded the proposal as “arbitrary” and “inconsiderate.” But judging by the comments below the article, the average porteno isn’t too concerned about hurting local realtor’s feelings. In a city like BA where average salaries don’t keep pace with housing prices and demand, any initiative that makes rental properties more accessible for local workers and their families should be embraced.

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