Venezuela Parliament Approves Draft Law to Stimulate Rentals After Earthquakes

Venezuela's National Assembly, under Chavista control, has passed a draft law designed to invigorate the rental market. This legislative move occurs amidst the ongoing emergency following recent earthquakes that have displaced nearly 18,000 people, according to official figures.

The proposed law, which requires a second discussion for final approval, aims to safeguard the interests of both property owners and tenants. A key provision formally prohibits renting properties in high-risk zones or within precarious structures, as highlighted by Pedro Infante, the first vice president of the National Assembly, who presented the draft.

Infante emphasized that the law provides legal certainty and aims to create a more balanced environment, thereby untangling issues that have hindered the rental market. He also stressed that core principles of this legislation include "dejudicialization and celerity," seeking swift mechanisms to resolve disputes, reduce response times, and alleviate the burden on the ordinary justice system.

Furthermore, the law will allow parties to freely agree on an average rent payment and its indexation in case of renewal. Infante believes this will prevent speculation and protect the real value of money against inflation. The bill, officially titled 'Law on the Special Regime for the Rental of Real Estate for Housing,' comprises four chapters and 27 articles.

The double earthquake on June 24th impacted seven Venezuelan states, particularly La Guaira, which was declared a disaster zone. Authorities have reported 4,734 deaths, 16,740 injuries, and 17,907 individuals left without housing as a result of the tremors.