Venezuela Advances Rental Law Amid Housing Crisis

The Venezuelan National Assembly is considering a new law aimed at reactivating the rental market, spurred by a need for housing after a recent earthquake that left nearly 18,000 people displaced. The proposed “Law of the Special Regime for the Leasing of Real Estate Destined for Housing” seeks to offer more legal guarantees to property owners and stimulate rental availability, with an estimated 200,000 homes potentially entering the market.

While seen as an improvement over 2011 legislation, the NGO Cedice Libertad points out the new law doesn’t fully address systemic issues like a lack of rule of law and economic stability. The bill establishes conditions for habitability, sets a one-year contract duration, and allows rent adjustments tied to the consumer price index.

The legislation also outlines a system for repair costs and security deposits, and preserves the tenant’s right of first refusal if the property is sold. However, Cedice warns the law’s price controls and potential for unilateral currency conversion could hinder its effectiveness. The bill is currently undergoing review by a special commission.