What does the rent law say about annual increases?
According to the current law, the minimum term for rental contracts is 3 years. In real estate contracts, the rental price must be set as a single value, for monthly periods Y only annual adjustments can be made.
As we anticipated, these adjustments have to be made from an index made up of equal parts by the monthly variations of the consumer price index (CPI) and the average taxable remuneration of stable workers (RIPTE), which must be prepared and published monthly by the BCRA. Namely, every 12 months the tenants will have to face a rise based on salary increases and inflationalways on the original rental value.
How to calculate the rent adjustment?
In order to apply the adjustment based on the Lease Contracts Index (ICL)a formula must be used that considers the value of two dates: the beginning of the contract and the date on which the increase will be made.
The index can be consulted on the BCRA website, both owners and tenants, in the “statistics” tab. To advance in the calculation, you must click on the “main variables” option and look for “ICL” at the end of the list.
The user must select the period start and end dates that you want to consult. First, you must place the date on which the contract was signed, to know what the index was at that time, and in which the adjustment will be made..
Then, take the current rental price and divide it by the value of the index with the start date of the contract and, finally, you must multiply that amount by the index of the date the rent figure changes.
To end, the formula that must be applied is the total rent divided by the index with the date of when the contract was signed, multiplied by the index of the day in which the increase is applied on it. That value that it throws will be the amount of rent that the tenant must pay throughout the year.
More rental calculators on the web
There are certain actors that are linked to rents and develop online calculators that are free and allow tenants and owners to make these accounts in seconds. Even the Government of the City of Buenos Aires offers that option to its inhabitants.
They all work the same way: enter the start date of the contract and the monthly amount that was paid during the first yearand with the push of a button the system informs how much the rent is for the following 12 months.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
