Buenos Aires apartment: raise rent by ARS 443,000 or retain a reliable tenant?

[teaAndPath]

Market asking rent for a comparable Buenos Aires apartment appears to be around ARS 5,622,000, while my tenant currently pays about ARS 5,179,000. They pay reliably and look after the home.

The gap is meaningful, but so are vacancy, turnover and refurbishment costs. Would you seek the full market figure, propose a smaller adjustment, or prioritise retention? I also want any discussion and notice to comply with the agreement and current local rules.

 

[uma_dawn]

I would start below the full asking figure. A dependable tenant has financial value even if it does not appear in the rent line: fewer payment problems, less damage risk and no reletting period. First compare the ARS 443,000 gap with the realistic cost of even one empty payment period, plus preparation and advertising.

 

[honest_wire]

Are both figures for the same payment period and the same package of expenses? Also, ARS 5,622,000 is an asking figure, not necessarily an achieved rent. Comparable apartments need to match on condition, furnishing, location within Buenos Aires and which charges are included before that number carries much weight.

 

[uma_dawn]

That distinction matters. I would make three columns: continue unchanged, agree a partial adjustment, or seek the full amount and accept possible turnover. Put the rent difference, plausible vacancy time, work needed between tenants and reletting expenses into each. It usually makes the trade-off clearer than treating “market rent” as an automatic answer.

 

[timo_budgets]

I would not discount the apartment indefinitely just because the tenant is good. Retention has value, but so does keeping the rent from drifting further behind comparable homes. A fair approach could be a documented adjustment now, followed by another discussion at whatever point the contract and local rules permit, rather than one abrupt jump.

 

[FreshThread]

Before proposing a number, read the adjustment, notice and renewal wording in the existing agreement. Argentina's rules and individual contracts can matter here, so confirm the current position locally rather than relying on an old forum answer. Also decide how the deposit would be documented and returned if the tenant leaves; uncertainty there can sour an otherwise calm negotiation.

 

[teaAndPath]

The achieved-versus-asking point is what I was missing. The ARS 5,622,000 figure comes from asking listings, so I should not treat it as proof that another tenant would actually pay that amount. I’ll narrow the comparisons and list the apartment’s maintenance history and likely turnover work before choosing a proposal.

 

[timo_budgets]

Include maintenance that may be due even if the current tenant stays. Otherwise it is easy to classify every future repair as a turnover cost and overstate the case for no increase. I’d separate routine ownership work from cleaning, painting or damage specifically caused by changing tenants.

 

[kian_finance]

The numerical gap is ARS 443,000, roughly 8.6% of the current rent. Assuming both numbers cover the same period, one empty period at the current rent equals more than eleven periods of that gap, before refurbishment or reletting costs. That strongly supports retention if a full increase might trigger a vacancy, though it does not mean the rent should never be adjusted.

 

[BrightStone]

There may not be a choice between a smaller rise and losing the tenant. They could accept the full figure, reject any rise, or suggest something in between. A neutral conversation about their plans and preferred length of stay could reveal more than guessing. Just avoid presenting an asking-listing number as a settled market fact.

 

[uma_dawn]

Agreed, and keep the relationship discussion separate from the formal process. You can explain the comparisons and invite a response, while still giving any required notice in the correct form and timing. Before acting, confirm the permitted adjustment mechanism, effective date and deposit treatment with someone current on Buenos Aires requirements.

 

[ZiaPage]

I would not choose between a friendly conversation and the full ARS 5,622,000 figure until the cost of turnover is clearer. One vacant month plus cleaning or repairs could outweigh much of the extra rent, while a reliable tenant might still accept an increase after seeing credible comparisons.

Check completed or genuinely comparable rentals, estimate a realistic vacancy period, and separate ordinary maintenance from work caused by a changeover. Then confirm the contract and current Buenos Aires requirements before putting forward an amount and effective date. If retention matters, make it a proposal that allows a counteroffer rather than a final demand.