The rental contracts signed under Law No. 27,551, which update the rental price annually through the Lease Contract Index (ICL), will rise below inflation. How much progress will be?
Rents will increase annually below inflation.
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Behind the repeal of the rental law decided by the Government of Javier Milei through a decree of necessity and urgency (DNU)the contracts signed under law No. 27,551 -approved in 2020- continue to be updated through the Lease Contract Index (ICL) and in February they will suffer a rise of 147.1% annually.
In this way, the annual increase is far below of inflationwhich in 2023 ended at 211.4%, according to the official measurement of the National Institute of Statistics and Censuses (INDEC) and that in January it would be above 20%.
With the 147.1% increase, if a tenant was currently paying $100,000 will pay $247,112. Although, if the contract ends, the owner can request a different amount for renewal.
The ICL is the indicator prepared 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.
Repeal of the rental law: how contracts are agreed
The rent deregulation generated a great shock in the market that now returns to rule under the Civil and Commercial Codealthough this was also modified.
According to market sources, currently the contracts are being carried out mostly “for two years, in pesos and with quarterly updates through the inflation index.”
However, they have the option of making them in pesos or foreign currency, “at the free discretion of the parties.” In this sense, at the beginning of January the first cryptocurrency contract.
Source: Ambito
