Those who have a current rental contract signed with the new law and have been
paying the same
for their home for 12 months should prepare to face a shocking increase.
From
April 2023
they will have to pay almost
93% more
.
Such a jump,
already confirmed
, is due to the fact that the norm established that the monthly amount of the rent must
be updated each year,
largely reflecting the evolution of the
inflation index
.
And that indicator has just shot up to levels not seen in the last 32 years.
For many families the
April annual adjustment
will be the first of their contract.
For others it will be
the second and last
, in case they have started their rental in the fourth month of 2021.
In any case, the way
to
calculate the new amount
- the one that will apply for the next 12 months - is the same.
And it is key for all parties to know it well.
Now the owner decides at what value to rent the first year and then the adjustments are calculated with an official index.
Photo: German Garcia Adrasti.
How should the annual rent increase percentage be defined, under current law?
The controversial
national law 27,551
defined that contracts must last at least
three years
.
And he established that, during that period, on the monthly price "only annual adjustments
can be made
" with
a certain formula
.
The regulation details that the adjustments must be made "using an index made up of
equal parts
by the monthly variations of the Consumer Price Index (
CPI
) and the Average Taxable Remuneration of Stable Workers (
RIPTE
)".
In other words, the increases should remain at a
midpoint
between what
general inflation
and the
wages
of workers registered in a dependency relationship have advanced in the last year.
The Central Bank of the Argentine Republic (BCRA) is the entity that prepares and publishes this index, called
the Index for Rental Contracts
(
ICL
).
The current value of the ICL and all the previous ones, day by day, can be consulted on the BCRA website (www.bcra.gob.ar).
From there it arises, for example, that in July 2020 the ICL had started at
1.0;
that in April 2022 (almost a year ago) it was already
1.89
;
and that April 2023 will start at
3.64
.
That is to say, that in only
2 years and 6 months
it accumulated an
advance of 264%
.
Applying the index, since April many contracts will have increases close to 93%.
Photo: Andrés D'Elia.
Step by step, how to calculate what increase my rent will have if the annual adjustment falls in April 2023?
In recent days, the BCRA published the
ICL
values for the first half of April.
Therefore, the calculation can now be done, with this procedure:
Step 1: Find out the ICLs
.
You have to check here, on the one hand, what was the
ICL
of the day
the contract started
or the day of the
last update
(if one was already made).
And on the other hand, what will be the value of the ICL exactly
one year later
, that is, the day on which it will be time to make the next adjustment.
For example, on April 1, 2022 the ICL was
1.89
and on April 1, 2023 the ICL will be
3.64
.
Step 2: Calculate the variation
.
The current ICL (of the adjustment date) must be
divided
by the ICL of a year ago (the day of the start of the contract or the first adjustment).
The number obtained represents the variation of the index during the
last
rental year.
In the example, it will be necessary to calculate
3.64
divided by 1.89
.
As a result, a value of 1.9259
is obtained
.
This implies that an
increase of 92.59%
will have to be applied .
Step 3: Calculate the new amount
.
What remains is to take the variation value and
multiply it
by the amount in pesos that had been paid for rent each month.
The result will be the updated amount.
In the example, if since April 2022 you have been paying
$80,000
a month, you will have to multiply that by
1.9259
.
The account shows
$154,072
: that will be the monthly rent that must be paid between April 2023 and March 2024 inclusive.
For its part, if the update should be applied not on the first day but in the middle of the month, for example on
April 16
, the rise will be even higher:
92.75%
.
Thus, for example, a rent of $70,000 will go to $134,922;
and one for $110,000, at $212,021.
How to do the calculation automatically?
Different entities related to rentals have developed
free online calculators
that allow tenants and owners to carry out these calculations in a
few seconds
.
They are easy to use.
The start date of the contract and the monthly amount paid during the first year are entered, and with the push of a button the system informs
how much
the rent increases for the following 12 months.
One of the tools available online to find out how much each rent will increase.
Image: Capture.
Three calculators
that can be used are:
-IVC calculator.
It is the official option of the
Buenos Aires government
, created by the City Housing Institute.
-Indicecontratoalquiler.com.ar.
It is the one recommended by the organization
Inquilinos Agrupados
.
-Cabaprop.com.ar.
It is a development linked to the Sole College of Capital Real Estate Brokers (
Cucicba
).
If you have to move or renew the contract, how much are the prices now?
According to a report from the specialized portal Zonaprop, in the City of Buenos Aires the
average
rental value of a
studio apartment
is
$88,110
per month for the first year of the contract.
Likewise, a two-room
apartment
already costs about
$107,835
per month and a three-room unit rents for
$144,639
per month on average.
These prices, surveyed in January, show that rents in the Capital increased by
111.9%
in the last
12 months
.
MDG
look too
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