In accordance with the current Rental Law, each year, the contracts have rate updates, so, as of October 1, tenants who signed a contract in October 2021, will have an increase in rents. rentals.
While in September the increase in rentals was 60%, for October the leases they will increase by 67%, which will have a direct impact on inflation, which has already accumulated 56.4% so far this year.
In this way, a person who, for example, paid $50,000 in the last 12 months (period from October 2021 to October 2022), would start paying $83,653 from the next month for rentals.
To calculate the increase, the Lease Contracts Index (ICL) published every day by the Central Bank is taken into account.which includes the variation in inflation, according to the Consumer Price Index of INDEC (National Institute of Censuses and Statistics).
In addition, this index also takes into account wages, according to the average remuneration (RIPTE) of workers who are under a dependency relationship.
However, to apply the adjustment according to the ICL, a formula must be used that takes into account the value of two dates: the start of the last value update and the date on which the increase will be made. The index can be consulted on the website of the Central Bank, in the “statistics”, “main variables” and “ICL” option.
Then the person must take the current price of the rent and divide it by the value of the first index. Then, that amount must be multiplied by the index of the date on which the rent figure changes. The value it yields will be the amount that the tenant must pay throughout the year.
What is the modification of the rental law?
While the rents increase every month, the discussion to modify the current Rent Law continues to stall, due to the lack of consensus on the part of the opposition and the ruling party.
In this regard, Marta Liotto, president of the Buenos Aires Professional Real Estate Association (Cucicba), said: “obviously the problem continues, with no view of a solution as long as the current context marked by the current regulations governing rents is maintained” because it is becoming more and more difficult to find properties available and affordable for current income.
