Rentals in southern Mendoza according to Sandra Valdez, from the real estate sector, on Aconcagua Radio

San Rafael, with its established educational offerings, experiences a steady flow of university students, boosting the rental market. "I work a lot with students," Valdez notes. "So, for example, we have a lot of educational offerings in the city of San Rafael, but there's a shortage of properties," explains Sandra Valdez, highlighting the high demand in this segment.

Added to this student demand is the demand of young families seeking independence, as well as the tourism sector that characterizes the region.

The dynamics of the rental market in San Rafael have been marked by a turning point since Law 27,551, which, according to the real estate agency, caused a decline in the willingness of owners to offer their properties for traditional rentals, shifting them toward tourist rentals or sales.

However, the implementation of Decree of Necessity and Urgency (DNU) 70/2023, which returned to the foundations of free contracting in urban locations, has begun to change this situation. "Now, for example, with this decree, the market has become more dynamic again," the real estate owner celebrates.

Regarding the proportion of properties designated for tourist rentals compared to traditional rentals, Valdés offers an estimate based on experience in the local market. "Our impression is that it's 30-70% or even 40-60%, I'd say, because the tourist offering in San Rafael is impressive," he explains, detailing that 30% to 40% of the properties are designated for tourism, especially in rural areas with high demand.

Most tourist rentals operate formally, often linked to the local tourist office, although online platforms like Airbnb also play an important role.

Regarding student demand, the repealed rent law created difficulties due to the index-based annual increases. "When Law 2,751 began implementing annual increases, it was shocking for tenants. Even though it was a law implemented to help tenants, it didn't end up helping them," Valdez analyzes. The annual increases were significant and difficult for students and their families to cope with.

With the DNU, the landscape has changed. Free contracting allows for agreements with quarterly, four-monthly, or half-yearly increases, better adapting to tenants' ability to pay.

This new dynamic makes planning easier for students, who typically return home in December and return in mid-February. "And, for example, when students leave in December and return in mid-February or early February, they already have their apartment reserved and know how to book it," Valdez points out.

Regarding lease renewals, the situation has also improved with the new regulatory framework. "At first, it was a matter of what happened with Law 27,551, but now we feel more comfortable. And since the increases aren't as steep as they were back then, they're manageable," says Valdez, although he acknowledges that the overall economic situation may still create difficulties for some tenants.

In short, the rental market in San Rafael presents a complex and constantly evolving landscape, influenced by factors as diverse as student demand, tourist appeal, legal regulations, and economic policies. The repeal of the previous law and the implementation of the new decree have generated significant changes, seeking to balance the needs of tenants and owners in a region with very distinct characteristics.

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