Rental contracts signed under Law No. 27,551, which update the rental price annually through the Rental Contract Index (ICL), will rise below inflation. How much progress will be?
The rental contracts signed under law No. 27,551which update the rental price annually through the Lease Contract Index (ICL), will suffer a rise of 164.06% in March In front of one inflation interannual that in the second month of the year would be between 275% and 288%, according to the consulting firms surveyed by Ambit.
With the 164.06% increase, if a tenant was currently paying $200,000 will now pay $528,120. Although, if the contract ends, the owner can request a different amount for renewal.
It should be noted that the new rental contracts are no longer compulsorily governed by the ICL, but rather the parties are “free” to decide the index that they like for indexation and they are not annual either – they decide it prior to the contract – since the repeal of the rental law promoted by the Government of Javier Milei deregulated housing rental contracts.
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 contractLikewise, as there is no mandatory indexation index, there are contracts that were signed based on the increase in gasoline.
Source: Ambito
