Why are long-term leaseholds uncommon in Argentina?

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Argentina. If you'd like to learn more about us, you can check our presentation page.

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At The LatinVestor, we explore the Argentine real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Buenos Aires, Córdoba, and Mendoza. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What does Argentine law currently say about the maximum length of residential and commercial lease agreements?

Argentine law sets a 2-year minimum for residential leases and allows commercial leases up to 50 years, but actual market practice differs significantly from these legal maximums.

The Civil and Commercial Code of Argentina establishes that residential lease contracts must run for a minimum of 2 years to provide tenant stability. Commercial leases face no such minimum but can legally extend up to 50 years for long-term business investments.

In practice, most residential contracts in Argentina stick closely to the 24-month minimum, while commercial leases rarely exceed 3-5 years despite the generous legal allowance. Landlords avoid longer commitments due to inflation uncertainty and tenant protection laws that make evictions lengthy and costly.

As of September 2025, recent deregulation has removed the previous mandatory 3-year minimum for residential leases, giving parties more flexibility to negotiate shorter terms with frequent rent adjustments.

It's something we develop in our Argentina property pack.

How do inflation rates and currency devaluation in Argentina affect the willingness of landlords to commit to long-term leases?

Argentina's inflation rate exceeding 100% annually as of September 2025 makes landlords extremely reluctant to commit to multi-year leases with fixed rents.

Currency devaluation against the US dollar creates additional uncertainty, as many landlords prefer to mentally price their properties in dollars while being legally required to collect rent in pesos. This disconnect makes long-term peso-denominated contracts financially risky for property owners.

Landlords who do offer longer leases now include quarterly or semi-annual adjustment clauses tied to the Consumer Price Index (CPI) or specialized rental indices. These frequent adjustments essentially eliminate the traditional stability that long-term leases once provided.

The combination of high inflation and currency instability has pushed many landlords toward short-term rental models like Airbnb, where they can reset pricing monthly and collect payments in foreign currency from international guests.

Even when landlords do accept multi-year contracts, they often front-load the rent or require significant security deposits to hedge against inflation risk over the lease term.

What are the typical lease lengths available in Buenos Aires compared to smaller cities across Argentina?

Buenos Aires rental market operates with shorter lease terms and more frequent adjustments compared to Argentina's interior cities, reflecting the capital's higher market volatility.

In Buenos Aires, residential leases typically range from 12 to 24 months, with quarterly rent adjustments becoming standard practice. The city's dynamic real estate market and higher inflation exposure make both landlords and tenants prefer more flexible arrangements.

Smaller cities like Córdoba, Mendoza, and Rosario often maintain the traditional 24-month residential lease terms, though they still include semi-annual adjustment clauses. These markets experience slightly less volatility but remain subject to the same national economic pressures.

Commercial leases in Buenos Aires rarely exceed 3 years, while interior cities might see 5-year commercial contracts, though both include frequent rent escalation provisions. The capital's premium office and retail spaces command higher rents but offer less long-term stability.

Foreign investors and expatriates find securing formal multi-year leases particularly challenging in Buenos Aires, often relying on short-term furnished rentals or informal arrangements with frequent renewals.

How do landlords generally adjust rents in Argentina to cope with inflation, and how does this discourage long-term contracts?

Adjustment Method	Frequency	Index Used	Typical Increase
CPI-linked adjustments	Quarterly	Consumer Price Index	15-25% per quarter
Rental Contract Index	Semi-annual	ICL (Índice para Contratos de Locación)	30-50% per adjustment
Negotiated increases	Monthly	Informal agreement	8-12% monthly
Dollar-pegged (informal)	Monthly	USD exchange rate	Varies with devaluation
Fixed percentage	Annual	Predetermined rate	60-100% annually
Market reassessment	Contract renewal	Current market rates	Often 100%+ increases

What role does the government's rent control policies or tenant protection laws play in discouraging long-term leases?

Argentina's tenant protection laws heavily favor renters in disputes, making landlords wary of long-term commitments that could trap them in unprofitable contracts.

The previous rent control regime (2020-early 2024) mandated 3-year minimum contracts with limited annual increases, which drove many landlords out of the formal rental market entirely. Property owners shifted to short-term rentals, sales, or informal arrangements to avoid these restrictions.

Current eviction processes in Argentina can take 6-12 months through the court system, during which landlords cannot collect rent or recover their property. This lengthy legal process makes landlords prefer shorter leases that reduce their exposure to problematic tenants.

Since late 2023, the government has deregulated the rental market, removing rent caps and mandatory contract lengths. However, the underlying tenant protection laws remain strong, continuing to influence landlord behavior toward shorter, more flexible agreements.

Security deposit regulations limit landlords to collecting maximum 3 months' rent upfront, insufficient to cover potential losses during lengthy eviction proceedings, further encouraging shorter lease terms.

How do banks, mortgage rates, and access to financing affect whether Argentines prefer buying property over signing long-term leases?

Mortgage interest rates in Argentina averaged between 29% and 38% in 2025, making property purchases financially impossible for most residents and pushing them toward rental markets.

Argentine banks offer extremely limited mortgage products, typically requiring 50-70% down payments and offering terms rarely exceeding 10-15 years. These restrictive conditions mean only wealthy individuals or those with dollar income can access financing for property purchases.

The high borrowing costs and limited availability create a large rental demand from people who would prefer to buy but cannot access financing. This captive rental market allows landlords to maintain shorter lease terms while still finding tenants.

Cultural preferences strongly favor homeownership in Argentina as both social status and inflation hedge, but economic reality forces most people into renting. This creates a reluctant rental population that accepts shorter leases hoping to eventually purchase property when conditions improve.

It's something we develop in our Argentina property pack.

What percentage of rental contracts in Argentina are renewed annually, and how does that compare with long-term renewals?

Annual contract renewals dominate Argentina's rental market, with approximately 80-85% of residential leases being renewed or renegotiated yearly rather than committing to multi-year terms.

The standard practice involves 24-month initial contracts with built-in annual review periods where rents are substantially adjusted based on inflation indices. These annual renegotiations function as de facto new contracts with updated market rates.

Long-term renewals beyond 3 years account for less than 15% of the rental market, primarily involving commercial properties in stable secondary markets or residential properties with established tenant relationships and strong inflation adjustment clauses.

Foreign investors and expatriates experience even higher turnover rates, with 70% of their rental arrangements lasting 12 months or less due to landlord preferences for flexibility and informal dollar-denomination of rents.

The frequent renewal cycle allows both parties to reassess market conditions regularly but creates ongoing uncertainty and transaction costs that make the rental market less stable than in countries with longer lease traditions.

How do foreign investors or expatriates experience the Argentine rental market when it comes to securing multi-year leases?

Foreign investors and expatriates face significant challenges securing formal multi-year leases in Argentina, with most landlords preferring short-term arrangements or informal agreements.

Many landlords view foreign tenants as flight risks and prefer month-to-month arrangements or contracts under 12 months to maintain flexibility. This preference intensifies in Buenos Aires where landlords can easily find short-term rental demand from tourists and business travelers.

Expatriates often encounter informal rental arrangements where landlords request payment in US dollars despite peso-denominated contracts being legally required. These arrangements rarely extend beyond annual terms due to the regulatory gray area they create.

Property management companies specializing in expatriate services typically offer furnished rentals with 6-12 month terms, recognizing that longer commitments are difficult to secure from Argentine property owners given current market conditions.

Foreign property investors who become landlords themselves often mirror local practices, offering short-term leases with frequent adjustments rather than the longer-term arrangements common in their home countries.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Argentina versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the typical legal or administrative risks landlords face if they sign a tenant to a lease longer than two or three years?

Landlords signing multi-year leases in Argentina face substantial legal and financial risks due to tenant-favoring courts and lengthy eviction processes that can take 6-12 months to complete.

The primary administrative risk involves rent adjustment disputes, where tenants can challenge inflation-based increases through the court system, potentially freezing rent at below-market rates for extended periods during litigation.

Eviction proceedings for non-payment require formal legal processes that heavily favor tenants, including mandatory mediation periods and multiple court appearances. Landlords cannot recover possession quickly even with clear breach of contract, creating substantial carrying costs.

Long-term contracts also expose landlords to regulatory changes, as Argentina's frequent policy shifts can retroactively affect existing agreements. The 2020-2024 rent control period demonstrated how government intervention can make previously negotiated contracts unprofitable.

Security deposit limitations of 3 months' rent provide insufficient coverage for potential losses during extended vacancy periods caused by legal proceedings, making longer-term commitments financially risky for property owners.

How do cultural attitudes toward property ownership versus renting shape the demand for long-term leases in Argentina?

Argentine culture strongly favors property ownership as a symbol of social status and financial security, creating a rental market filled with reluctant tenants who view renting as temporary rather than a long-term lifestyle choice.

This ownership preference means most renters actively save to purchase property and resist committing to long-term leases that might tie up their capital or limit their flexibility to buy when opportunities arise.

The cultural perception of renting as a stepping stone to ownership creates tenant demand for shorter, more flexible arrangements that allow quick exit when purchasing opportunities develop. This attitude aligns with landlord preferences for shorter commitments.

Homeownership is viewed as essential protection against inflation and currency devaluation, making property purchase a priority even for middle-class families. This drives consistent demand for rental properties but from tenants who prefer not to commit long-term.

It's something we develop in our Argentina property pack.

What recent data exists on disputes between tenants and landlords in Argentina, and how often are these linked to contract length?

Formal statistics on tenant-landlord disputes in Argentina are limited, but legal professionals report that rent adjustment conflicts and eviction proceedings account for the majority of rental-related court cases.

The most common disputes involve disagreements over inflation-based rent increases, particularly in contracts exceeding 12 months where cumulative adjustments can double or triple rental costs during the lease term.

Eviction cases typically take 6-12 months to resolve through Argentina's court system, with longer-term leases showing higher dispute rates due to the greater financial stakes involved for both parties.

Contract length becomes a factor in disputes when tenants challenge rent escalation clauses or when landlords seek early termination due to non-payment. Longer contracts create more opportunities for disagreement over adjustment calculations and payment schedules.

Industry sources indicate that properties with annual lease renewals experience fewer formal disputes, as both parties can renegotiate terms regularly rather than being locked into potentially problematic long-term arrangements.

How do real estate professionals in Argentina recommend structuring lease agreements to balance landlord security and tenant stability?

1. **Include automatic rent adjustment clauses tied to official inflation indices (CPI or ICL) with quarterly or semi-annual review periods to maintain real rental value**2. **Require security deposits of the maximum 3 months allowed by law, plus advance payment of the first month's rent to improve cash flow protection** 3. **Structure initial lease terms of 24 months with clear renewal options and predetermined adjustment mechanisms to provide predictability**4. **Include specific termination clauses allowing early exit by either party with 60-90 days notice and penalty payments to maintain flexibility**5. **Require tenant guarantors (local co-signers) or insurance policies to strengthen landlord protection in case of default**6. **Specify maintenance responsibilities clearly, with tenants covering minor repairs and utilities while landlords handle major structural issues**7. **Include force majeure clauses addressing economic crises or regulatory changes that could affect the contract's viability**

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. WSC Legal - Lease Contracts for Residential and Commercial Use
2. CSP Abogados - Commercial Lease Agreement in Argentina
3. Top Ranked Legal - Real Estate in Argentina
4. Argentina News - Changes in the Rental Law
5. Global Property Guide - Argentina Landlord and Tenant
6. Instituto de Libertad Económica - Argentina Scrapped Rent Controls
7. Expats BA - Rent Calculation Methods
8. Reason - The End of Rent Control in Argentina
9. The Global Economy - Argentina Mortgage Interest Rate
10. Becci.dk - Rentals in Buenos Aires