7. Letting the Property

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After the property has been renovated and furnished, it is ready to be leased to your future tenants. This can be done through publishing the property on the Internet and in newspapers personally, or with the help of a rental agent that will work with you to find a tenant, and if you are living outside Argentina will also help you to charge the rent and hire a cleaning service to clean between tenants.

Rental Agent

There are Rental Agents throughout the City of Buenos Aires, and many times you will be able to find more than one on the same block. There are some larger ones and others that are smaller. Often working with a smaller rental agent that specifies on the type of rental that you want to perform is the most effective way to have your property occupied as much as possible. A rental agency with a very large book and many properties to rent can often cause your property to fall low on the list and be unoccupied a large amount of the time. Smaller agents will be more eager to rent your property as it might be one of the few that they have, but make sure that they work well and are trustable as there might be a reason why they are so small.

Rental Agents charge around 15 – 20 % of the monthly income you make on your property. This number can often be negotiated, but be careful for it not to go to low as this might cause the rental agent to disregard your property and instead rent first the ones that are giving them higher commission since they feel that they are not making enough money off of your property.

Working with more than one rental agent will also increase the probability of having your property occupied as much of the time as possible, always keeping in mind that the different agents are aware of each other, and this way not double-letting the property.

Some rental agents might have properties of their own that they have published on the market for short term rentals, if this is the case it is advisable not to work with this agent as he will first rent his own property and then any of his clients. They will most likely insist that renting your property will be their number one priority, but the fact is that they will make more money renting out their own property first.

If you are living outside of Argentina, a good rental agent is essential as this will be the person able and in charge of organizing everything from charging rent to cleaning the property and doing laundry between tenants, and arranging for someone to water the plants.

Long Term Rental

Long Term Rentals are a common choice among locals that are letting properties in the City of Buenos Aires. They guarantee that the property will bring a steady income for 24 months, and do not involve the hassle of constantly worrying about the different tenants that are staying in the property.

24 month contracts
The long term rental contracts are signed every 24 months, and often the same family will rent the same property for various 24 month periods, calling this rented property their home as they might not yet have saved enough money to purchase their own property.

Guarantee
When letting a property for long term rental, a guarantee is commonly required from the tenant, ensuring the property owner that the monthly rents will be paid. The guarantee is usually presented by a family member or close relative in the form of another property that shows that if the tenant does not pay their rent, or if they destroy the rented property, they have some way of getting the money to pay for the damages.

does not need to be furnished nor very renovated
One of the pirks with long term rental properties is that the initial investment in the property does not need to be as large as that in short term rental, as the tenant takes the property for such an extended period of time that they often perform smaller renovations and improvements on the property. They will also provide their own furniture and kitchen utensils, etc. That is a large expense in the beginning of any short term rental property investment.

landlord not responsible for fees and expenses
When you let a property for long term rental, the property owner is not held responsible for the payment of monthly expenses such as gas and water, nor those that are charged commonly in the building for general maintenance.

Short Term Rental

Short term rentals will, after a larger initial investment, also bring in a larger monthly income than long term rentals. Properties intended for short term rental need more involvement and commitment than long term rentals, but this can also be left in the hands of a trusted rental agent who will also charge a percentage of the money made of off the property.

maximum 6 month contract
The maximum length of a short term rental contract is 6 months, after which the contract has to be renewed if the tenant wants to stay in the property. The rent is paid in advance since tourists that come into the country do not commonly have any one that can act as their guarantor, putting the property owner in risk of not getting the rent payments if it is not paid in advance.

as short as 1 week contracts
Some will rent their property for as little as one week at a time, or even by the days. This money is also paid in advance, and since the person(s) is(are) staying for a shorter period, the rent is usually slightly higher than if the tenant(s) would have stayed for an entire month or up to the six months limit.

Has to be furnished
It is very rare that anyone would want a property for short term rental that is not furnished, so this is a must especially if luxury short term rentals are intended. The tenant will leave a deposit with the property owner or rental agent that will be held until the tenant has left the property as an insurance that nothing will be broken, and if it is, the property owner has the right to take money out of the deposit to replace the damages.

providing wifi, phone, cable TV, etc.
As the short term rental property is intended as a sort of temporary home, or a nicer sized hotel room, it needs to include an Internet and cable TV connection, and a phone line, so that the tenant can feel comfortable and that the elevated rent is worth the stay.

Location
The location of short term rental properties is very important. They should be located in a centrical neighborhood such as Recoleta, Barrio Norte, Retiro, or Palermo, close to touristic areas and public transportation. The building should be quite modern, and if the property is located on a higher floor, make sure that the building has an elevator so that the tenant doesn't have to walk up the stairs. A nice view on a high floor will attract many, and the fact that the property is located on a higher floor will also make less of the street noise be heard inside the property, something that can be bothersome if the property is located on a larger avenue.

landlord needs to pay fees and provide tenant with utensils and towels, etc.
One of the main differences between short and long term rentals is that in the case of short term rentals the property owner is the one responsible for the payment of all fees and expenses of the property. This is something that needs to be taken into consideration when calculating the ROI of a short term rental property and deducted from the total monthly income of the property.

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