Buy to let properties in Buenos Aires are attracting investors from all over the world as demand continues to outweigh the supply. In this section you will find answers to some of the most frequently raised issues that surround the process of buying property in Buenos Aires purely for rental purposes.
What rental options are available in Buenos Aires?
Short Term Rentals
Rentals between one and three months long are considered short term. Most management agencies will charge a commission of around 10% of the total rental income and an administration fee of around 5% in order to pay taxes and other expenses on the owners behalf. Short term rental properties are furnished and tenants are not expected to pay additional fees for cleaning etc.
Long Term Rentals
Long term contracts for rental property in Buenos Aires are for 2 years. Management companies charge a commission of 1 months rent in most cases. Prospective tenants are put through a rigorous credit check so as to ensure that they will be able to honour the contract. The guarantee of a property (without a mortgage) or a personal guarantee from an employer or parent is also common.
Properties that are available for long term rent are unfurnished. Tenants are expected to pay ALL associated costs including electric, water, gas, community fees, council tax etc. Management companies tend to charge around 5% administration to ensure everything is paid that ought to be.
What kind of property is best suited to the rental market?
Studios, 1 and 2 bedroom apartments are the most sort after. Young professionals, students, businessmen and tourist couples are the most likely tenants who are looking for alternative accommodation to hotels.
What kind of annual expenses are involved?
Below is an example of a furnished 1 bedroom apartment in Palermo.
Purchase price: 70,000 USD including furniture.
Short term rental price: 900USD per month.
(U$S)
Community Expenses 1,000.00
Insurance 120.00
Council Tax 120.00
Electricity 360.00
Water 120.00
Gas 120.00
Cable TV & Internet 300.00
Management Fee (5%) 540.00
Fiscal Representation 120.00
Gross Rental Income 10,800.00
Total Expenses 2,800.00
Total Net Profit 7,200.00
What kind of rental income can I expect?
Typical rental incomes (less expenses) for short term rentals:
DEVELOPMENT
No. OF BEDS
PRICE
(incl. Furniture)
U$S
RENTAL INCOME / MONTH (NET)
U$S
YIELD
Charcas
1
76,000
640.00
8%
Uriarte
1
56,000
500.00
9%
Uriarte
2
79,000
740.00
9.4%
Typical rental incomes (less expenses) for long term rentals:
DEVELOPMENT
No. OF BEDS
PRICE (excl. Furniture)
U$S
RENTAL INCOME / MONTH (NET)
U$S
YIELD
Garruchaga
2
89,800
530.00
5.9%
Humbolt
3
104,600
630.00
6%
1
48,600
380.00
7.8%
Charcas
2
70,800
475.00
6.7%
SAN TELMO
PRICE PER MONTH U$S
PRICE PER WEEK U$S
TYPE
MIN.
MAX.
AVERAGE
MIN.
MAX.
AVERAGE*
Studio
300
987
610
180
335
281
1 Bed
550
1.075
805
300
320
310
2 Bed
315
1.500
1.120
0
0
0
Taken from Reporte Inmobiliario, Economia & Real Estate
Rental Prices currently advertised for properties in San Telmo – January 2008
