The Chamber of Deputies approved this Wednesday the modification of the Rental Law (27,551) who proposed Together for Change (JxC) although the project must still go through the Senate.
Rental Law: what modifications would be introduced?
Within the reform that was approved in Deputies, it is proposed that the contracts last 2 years, instead of three, and that the price updates are no longer annual, but “with the periodicity that the parties agree“though they should be”at intervals not less than 4 months”.
In turn, the minority opinion also introduces changes in the index that is taken for adjustments, which until now was the Leasing Contract Index (ICL). If the reform is approved in the Senate, Article 14, of adjustments, will be worded as follows: “For adjustments, the parties must agree on the mechanism for updating the rental price at the beginning of the rental relationship, being able to apply for such purposes the Consumer Price Index (CPI), Wholesale Price Index (WPI) and/or Wage Index (IS), prepared by the National Institute of Statistics and Censuses (INDEC) or a combination of said indices, according to the parties agree”.
Rental law: how much the indices that would be used to adjust prices rose in the last year
If the adjustments section is drafted as proposed by the opposition, for the update agreed between parties and for intervals not less than 4 months, the landlord and the tenant could update according to the Consumer Price Index (CPI), Wholesale Price Index (WPI) and/or Wage Index (IS), prepared by the National Institute of Statistics and Censuses (INDEC) or even a combination of these indices.
Between August 2022 and July 2023, the inflation accumulated was 113.4%, while the MPI was 112.7% and the salary index was 108.7%.
In this way, in an agreement between parties, it would be convenient for the lessor to take the CPI to update the contract, since it is the highest variation and thus could obtain a greater adjustment.
Meanwhile, the tenant would benefit from the salary index because it is the lowest variable and the increase would not be so significant and would be based on the salary updates that the worker has.