The lead story in today’s iProfesional describes the “oasis verde” that Buenos Aires property owners have discovered by renting their residential properties to foreigners here for business, school or sheer pleasure.
As we’ve chronicled since January, the dollar drought prompted by currency controls forced the majority of BA sellers to pull their listings and lock-in pesos with one and two-year rental contracts. iProfesional’s Mariano Jaimovich goes a step further and scours the local classifieds for short-term rentals from the dozens of local agencies offering daily, weekly and monthly rates.
The benefits of short-term rentals in Buenos Aires extend to both renter (furnished units, no exorbitant broker commissions, all utilities included, greater flexibility) and owner (dollars, greenbacks, dolares, Benjamins)…hence the “oasis verde.” Reporte Inmobiliario estimates there are around 1,700 furnished short-term rentals in seven of the most popular BA barrios like Barrio Norte, Palermo, Recoleta and San Telmo.
The average Buenos Aires short-term rental property is occupied 8 months per year and generates much better ROI for owners who opt for dollar-denominated short-term vs. peso-denominated long-term rentals. iProfesional refers to the latter as renting “entre argentinos” which only nets around 3% per year. “Even with only 50% occupancy during the year, (the short-term) rental income is superior to the traditional (long-term) rent,” Jaimovich concludes. (Full Story in Spanish)
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