The rental contracts update the rental price annually through the Rental Contract Index (ICL). How much will they rise in October?
The rental contracts that they have to update the rental price for the Lease Contract Index (ICL) will suffer a 115.05% update compared to the previous year.
According to the rental law current, the contracts are for three years and updates are made annually by the ICL. In this way, if a tenant was currently paying $100,000, they will now pay $215,057. Although, if the contract ends, the owner can request a different amount for renewal.
In this way, the annual update is below the inflation year-on-year, which in August marked 124.4%.
The ICL is the indicator created by the central bank and is made up of the variation in the price and wage index.
Rentals: how the ICL is calculated
To calculate the annual update of a rental contract, the current price must be taken as a reference, divided by the value of the index with the start date of the contract. That amount is then multiplied by the index of the date on which the rent figure changes.
The ICL is found on the Central Bank website www.bcra.gob.ar.
Rental Law: obtained half a sanction in Deputies
The reform of the rental law received a half penalty in Deputies to reduce the term of the contract to two years and agree between the parties on updates after four months, and to choose the adjustment method either by Consumer Price Index (CPI), Wholesale Price Index (WPI) either salary variation.
This modification is being debated in the Senate of the Nation, in commission it was modified and it remains to be discussed in tables, in case it obtains half a sanction the norm must return to Congress.
Source: Ambito
