According to the rental law above, 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.
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.
He ICL is found on the page of the central bank www.bcra.gob.ar.
Rental Law: what modifications does law 27,737 introduce
The new regulation provides that contracts continue to be for three yearsthat the update instead of being done through the Lease Contract Index (ICL) of the Central Bank (BCRA) be done for the Own housethat the contractual increases are every six monthsthat cannot be publish properties in dollars and that the agreements between parties are exclusively in national currency.
The intention of Congress is to “calibrate” the rental market, which after the enactment of the law in June 2020 and until now is with scarce supply, sharp increases and dollarized contracts. In parallel to the problems purely and exclusively of the rental market, Argentina is experiencing a strong inflationary accelerationto which in recent weeks the political uncertainty typical of electoral periods.