Showing that you are a good payer and that you are taking good care of the property weighs when it comes to seeking an agreement; negotiation can also be good for the owner, who does not want to see his property empty
Eugene Chystiakov/UnsplashCovid-19 pandemic and economic recession lead Brazilians to seek renegotiation of the rental price
The loss of income because of new coronavirus pandemic and restrictions on the operation of businesses and services led many Brazilians to clear their accounts in search of loopholes to reduce expenses, and the rent payment was not left out of this list. To make matters worse, the General Price Index – Market (IGP-M), the main indicator of real estate contracts, skyrocketed to 31.1% in the last 12 months ended in March, driven mainly by the increase in fuel prices and construction items. The tightening moment in the accounts gives room for tenants and landlords to seek consensus on contract readjustments. And experts point out that this is not advantageous only for those who are paying. In view of the uncertainties with the recovery of the economy, it is more business for the owner of the space to receive a little less, but to have the guarantee of payment, than to risk having the property empty and still having to bear daily expenses such as IPTU and condominium.
The rent price adjustment is always done 12 months after the contract is signed, but Matheus de Souza Fabricio, executive director of Rede Lopes, says that it is not necessary to wait until the “anniversary” of the document to seek renegotiation. “Any time you feel that there is room for this conversation is an opportunity, regardless of whether it is within the time limit for the readjustment,” he says. The history of the relationship between tenant and landlord should be the main argument for those looking for a lower value. It is at that moment that the interested party must show that he has always been a good payer, is taking good care of the property and even showing improvements in space. “It is recommended that this negotiation be done through a real estate company, since it manages to bring more information from the market and makes the filter of this relationship”, says Fabricio. The complicated economic moment and the lack of prospects for improvements in the short term can also be used to convince. “The tenant can show the owner that the situation is complicated and that this is not the time to have a vacant property.”
Rafael Scodelario, a real estate consultant, is emphatic when using the expression “common sense” as the main means to permeate a fair rental value for everyone. “It does not make sense to charge more than 30% in a readjustment last year,” he says. As an example of this increase, an apartment in which, a year ago, the tenant paid in the range of R $ 2,500.00 changes to R $ 3,250.00. The price of a commercial room that cost R $ 6,000.00 jumps to R $ 7,800.00. “The best way is to follow common sense. If you are a good tenant, you pay on time, why not give a discount or even pay this adjustment for a period of six months until things return to normal? ”, He asks. “The landlord should not run the risk of losing this tenant, and we see that in 90% of the cases, negotiations are successful.” If, on the one hand, the economic crisis drives tenants to seek a less heavy adjustment, or even exemption from the amount, it is necessary to take into account that the owner of the space also suffers from the effects of the recession. According to Fabricio, a small portion of Brazilian real estate is in the hands of large corporations, that is, in many cases, rent is an important source of income for the owner. “It is not easy for anyone, and the owner cannot be expected to give up 100% or give a rent shortage since he needs this income to survive,” he says.
IGP-M x IPCA
Despite the consensus on applying the IGP-M as a rental price index, among other types of service provision, there is no law that requires the use of the Getulio Vargas Foundation (FGV) indicator in contracts. The jump of the IGP-M has been followed since last year, when it started to detach itself from the Broad National Consumer Price Index (IPCA), the official meter of Brazilian inflation. For comparison, the IBGE index accumulated an increase of 5.2% in the last 12 months ended in February. Faced with this surge, especially at such a delicate time for the economy, real estate agents have already announced that they will no longer use the IGP-M as the basis for contracts. The IPCA has been the most used to close new businesses, but it is not the only one. For Scodelario, the inflation index, which increased by approximately 2% in the last 12 months ending in February, is the most appropriate for the current reality. “A large part is already using savings as an adjustment. It is necessary to analyze before closing these long-term contracts and study the indexes better. ”
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