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Easy methods to calculate the rent increase in April 2025 - La Nacion Propiedades
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www.lanacion.com.ar
April 01, 2025
Depending on when the contract was signed, it will be updated differently; learn about each of the possible adjustments.
By Maria Josefina Lanzi
Easy methods to calculate the rent increase in April 2025
As every month, many tenants and landlords need to calculate the rent increase because they are due for an adjustment. These increases vary depending on whether they were signed under the law passed in 2020, the amendment to that same law in 2023, or whether they were agreed upon after the repeal of the rental law, which opened the door for the parties to decide how the value of the contracts is updated.
Leases signed under the 2020 law are adjusted once a year according to the Lease Contract Index prepared by the Central Bank.Fabian Marelli
That is, agreements made under the law passed in July 2020 will maintain annual updates until they expire . The regulation of the ICL-indexed price will last until the end of these contracts, that is, until October 2026, unless extended .
These cases require the rental price to be adjusted once a year for the duration of the 36-month contract, i.e., twice in total . These increases are regulated by the Lease Contract Index (ICL), prepared by the Central Bank, which determines how much the value of the lease contract must increase in its annual update .
An important fact is that the fact that current rents are adjusted once a year according to the ICL represents a disadvantageous scenario for both tenants and landlords, since owners must anticipate annual inflation when setting a value at the start of the contract, and tenants have to face high sums in the first months of the new year, which are not in line with the current economy.
This data will help calculate the amount to be paid next year and the percentage increase corresponding to that period. Ultimately, the formula used consists of the total rent divided by the index as of the date the contract was signed, multiplied by the index on the day the increase is applied. The value obtained from this calculation will be the rent the tenant will have to pay next year , until the new rent increase is reached.
For example, in April 2024, the average rent for a one-bedroom apartment in Buenos Aires was $430,322, according to Zonaprop . If that tenant had started the contract on April 1, 2024, they would have to start paying the updated increase of $933,161 on April 1, 2025.
Those who update their rental contract in March based on the Rental Contract Index will pay 116.85% more than the previous year. Rent
To arrive at that number, the following data should be entered into the calculator:
This calculation will show that the amount to be paid next year (until April 2026) would be $933,161 based on the 116.85% increase established by the ICL at the beginning of April.
The rent adjustment can be calculated using an automatic calculator or manually based on information published by the Central Bank.Rodrigo Nespolo
For example, if a quarterly adjustment was agreed upon for a rent of $566,025 starting in January 2025 and due to be adjusted in April, the latest index published by INDEC is from February 2025. In this case, the three-month period from December 2024 to February 2025 will be used. Given that cumulative inflation for that period was 7.49%, the amount payable would be $608,403.50 per month.
First, you need to know the inflation rate for the period for which you intend to adjust the rent . The steps to follow are as follows:
Once the data is located, the steps to create the account are as follows:
In a concrete example , if a rental contract for $ 566,025 was signed on January 1, 2025, adjusted quarterly for inflation, it would have to be adjusted for the first time in April. Since the INDEC report is released mid-month, data for December, January, and February would be available on April 1, but not yet for March.
The monthly inflation rate for those months was 2.7% in December, 2.2% in January, and 2.4% in February.
After dividing each by one hundred and adding one, the account would be: 566.025 x 1.027 x 1.022 x 1.024 = $608,354.8
The result does not always coincide with the calculation made using the automatic calculator ( chequeado.com ), since the figures published monthly by INDEC are rounded (the number may contain a greater number of decimals which, when considered in the account, may vary between 100 and 300 pesos more/less than the final result).
In practice, the tenant will be able to know how much their rent will increase half a month before the adjustment. This is because—using this example as a reference—they can already know the inflation rate for February by mid-March and, thus, calculate how much they will have to pay in April. However, the figure could change if the rent is paid at the end of the month because the inflation rate for the previous month, in this example, March, would already be available.
Since Javier Milei's Decree established that tenants and landlords may freely agree on the index to which the value of the contract will be tied, contracts signed after the repeal of the rental law can be adjusted to suit their preferences in each case. For those who choose to use the Casa Propia index, there is an online calculator called arquiler.com that can help you with the calculations. To calculate the index, follow these steps:
With this data, it will be possible to calculate the amount to be paid over the next few months and the percentage increase corresponding to that period. For example, in October 2024, the average rent for a one-bedroom apartment in Buenos Aires City was $524,907, according to Zonaprop. If that tenant had started the contract on October 1, 2024, and opted to update it with the Casa Propia index every six months, they would have to pay $822,536 in April.
To arrive at that number, the following data should be entered into the calculator:
This calculation will result in the amount to be paid over the next six months (until September 2025) being $822,536 based on the 56.7% increase established by the Home Ownership Index.
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Los métodos fáciles para calcular el aumento del alquiler en abril 2025
Según el momento en que se firmó el contrato, se actualizará de forma distinta; conocé cada uno de los ajustes posibles
www.lanacion.com.ar
April 01, 2025
Depending on when the contract was signed, it will be updated differently; learn about each of the possible adjustments.
By Maria Josefina Lanzi
Easy methods to calculate the rent increase in April 2025
As every month, many tenants and landlords need to calculate the rent increase because they are due for an adjustment. These increases vary depending on whether they were signed under the law passed in 2020, the amendment to that same law in 2023, or whether they were agreed upon after the repeal of the rental law, which opened the door for the parties to decide how the value of the contracts is updated.
Leases signed under the 2020 law are adjusted once a year according to the Lease Contract Index prepared by the Central Bank.Fabian Marelli
How to calculate the rent increase in April according to the ICL
Although President Javier Milei repealed the rental law through the Decree of Necessity and Urgency (DNU) in December 2023 and, with it, opened the game to define the way in which the value of the contracts is updated (the index and how often), all those signed prior to the DNU will continue with the agreed terms until their expiration .That is, agreements made under the law passed in July 2020 will maintain annual updates until they expire . The regulation of the ICL-indexed price will last until the end of these contracts, that is, until October 2026, unless extended .
These cases require the rental price to be adjusted once a year for the duration of the 36-month contract, i.e., twice in total . These increases are regulated by the Lease Contract Index (ICL), prepared by the Central Bank, which determines how much the value of the lease contract must increase in its annual update .
An important fact is that the fact that current rents are adjusted once a year according to the ICL represents a disadvantageous scenario for both tenants and landlords, since owners must anticipate annual inflation when setting a value at the start of the contract, and tenants have to face high sums in the first months of the new year, which are not in line with the current economy.
With an automatic calculator
There are several websites that have calculators designed to help you find out how much rent is rising . One of them, for example, is the City Housing Institute 's website , also known as Arquiler . To check the index on the latter, follow these steps:- Visit the Arquiler website, which has a calculator specifically designed to help you understand rent increases : https://arquiler.com/
- First, the initial amount of the contract must be placed
- Then you must select the start date of the contract
- Select how often it is updated
- Select the update index
This data will help calculate the amount to be paid next year and the percentage increase corresponding to that period. Ultimately, the formula used consists of the total rent divided by the index as of the date the contract was signed, multiplied by the index on the day the increase is applied. The value obtained from this calculation will be the rent the tenant will have to pay next year , until the new rent increase is reached.
For example, in April 2024, the average rent for a one-bedroom apartment in Buenos Aires was $430,322, according to Zonaprop . If that tenant had started the contract on April 1, 2024, they would have to start paying the updated increase of $933,161 on April 1, 2025.
Those who update their rental contract in March based on the Rental Contract Index will pay 116.85% more than the previous year. Rent
To arrive at that number, the following data should be entered into the calculator:
- 430,322 in initial rental value
- 01/4/2024 on contract start date
- 01/4/2025 on contract update date
- Select “12″ for how often it updates
- Select ICL in update index
This calculation will show that the amount to be paid next year (until April 2026) would be $933,161 based on the 116.85% increase established by the ICL at the beginning of April.
The rent adjustment can be calculated using an automatic calculator or manually based on information published by the Central Bank.Rodrigo Nespolo
With the BCRA website
Another option is to consult the Central Bank's official website, where the institution updates the index daily. This option is not automatically calculated; the individual must perform it manually by following these steps:- Find the index: Go to the Central Bank's website ( bcra.gob.ar ), go to the "Statistics" tab, and then to "Main Variables." At the bottom of the list, the last option is the "Lease Contract Index." These steps can be shortened by accessing the shortcut: https://www.bcra.gob.ar/PublicacionesEstadisticas/Principales_variables.asp and searching for "Lease Contract Index."
- Define the index value at the start of the contract and the current value: the user must select the contract start date and the date on which the amount must be updated. Then, click the blue "Query" button, which will display a table with the index value for all months of the queried period. In this table, the first value is the index when the contract began, and the last is the current index value.
- To determine how much the rent will increase , perform the following calculation: take the current index and divide it by the index value at the beginning of the contract. This figure should be multiplied by the rent , resulting in the amount the tenant will have to pay over the next year until the index is updated again.
How to calculate the April rent increase based on inflation
Since the repeal of the rental law , landlords and tenants can agree on adjustments and choose which index will be used and how often the monthly payment amount will be modified. Contracts signed since January 2024, with the new DNU rules, returning to the Civil and Commercial Code, could be scheduled with preferred adjustments, although the most common adjustment was inflation based on the CPI (Consumer Price Index) with quarterly or four-monthly periods.With an automatic calculator
There are multiple automatic cumulative inflation calculators available online that use data published by INDEC (National Institute of Statistics and Census) as a reference. One of these is Chequeado, which will be used as a reference below:- Go to https://chequeado.com/inflacionacumulada/
- Where it says “To buy something that was coming out” enter the rental amount that needs to be updated.
- For "at the beginning of," enter the month in which the period you want to adjust begins. For example, if you wanted to do a quarterly update at the beginning of April, you should consider the period from December to February.
- Where it says “at the end of,” enter the month in which the period from which you want to adjust ends.
- Where it says “you would need the sum of” the new rental value will appear .
For example, if a quarterly adjustment was agreed upon for a rent of $566,025 starting in January 2025 and due to be adjusted in April, the latest index published by INDEC is from February 2025. In this case, the three-month period from December 2024 to February 2025 will be used. Given that cumulative inflation for that period was 7.49%, the amount payable would be $608,403.50 per month.
Manually
If you decide to adjust manually, it's important to note that you shouldn't add up the inflation for each month, but rather multiply the inflation variations for each month and then multiply them by the rent, since this represents the accumulated inflation for the period.First, you need to know the inflation rate for the period for which you intend to adjust the rent . The steps to follow are as follows:
- Access the INDEC CPI report from the INDEC website ( indec.gob.ar ), then go to the "Statistics" tab, click on "Prices" in the Economy section, and then select the "Consumer Prices (CPI)" button. You can also access it directly from this link .
- Click on the “read report” button.
- On the fourth page of the document, see the second graph, "Monthly Changes in the General CPI Level." There you can see the inflation rate for each month, which will be used to calculate the rate of change for the desired period.
Once the data is located, the steps to create the account are as follows:
- First, you must separately calculate the inflation rate for each month, divided by 100 and adding 1. For example, December's inflation was 2.7%, and dividing 100 gives 0.027, plus 1 gives 1.027. Continue this process for each month within the update period.
- Then you have to multiply the current rent value by those individual inflation values.
- The result will be the new rent to be paid for the next quarter.
- In other words, the formula would be: the value of the rent x (inflation first month/100 + 1) x (inflation second month/100 + 1) x (inflation third month/100 + 1) = updated value of the rent.
In a concrete example , if a rental contract for $ 566,025 was signed on January 1, 2025, adjusted quarterly for inflation, it would have to be adjusted for the first time in April. Since the INDEC report is released mid-month, data for December, January, and February would be available on April 1, but not yet for March.
The monthly inflation rate for those months was 2.7% in December, 2.2% in January, and 2.4% in February.
After dividing each by one hundred and adding one, the account would be: 566.025 x 1.027 x 1.022 x 1.024 = $608,354.8
The result does not always coincide with the calculation made using the automatic calculator ( chequeado.com ), since the figures published monthly by INDEC are rounded (the number may contain a greater number of decimals which, when considered in the account, may vary between 100 and 300 pesos more/less than the final result).
In practice, the tenant will be able to know how much their rent will increase half a month before the adjustment. This is because—using this example as a reference—they can already know the inflation rate for February by mid-March and, thus, calculate how much they will have to pay in April. However, the figure could change if the rent is paid at the end of the month because the inflation rate for the previous month, in this example, March, would already be available.
How to calculate the rent increase in April according to Casa Propia
Contracts signed under Law 27,737 (in force from October 17, 2023, to December 29, 2023, the date Javier Milei's DNU came into effect) are updated every six months based on the Casa Propia coefficient . These contracts began to be updated starting in April 2024, when the first six months had elapsed since their signing (in the case of those agreed upon in October).Since Javier Milei's Decree established that tenants and landlords may freely agree on the index to which the value of the contract will be tied, contracts signed after the repeal of the rental law can be adjusted to suit their preferences in each case. For those who choose to use the Casa Propia index, there is an online calculator called arquiler.com that can help you with the calculations. To calculate the index, follow these steps:
- Visit the website arquiler.com , which has a calculator specifically designed to help you understand rent increases .
- First, you must enter the initial rental amount agreed upon when the contract was signed.
- Then you must add the contract start date.
- You must then select how often the contract is updated (for contracts signed under this law, they are updated every six months; for contracts signed after the DNU, you can choose the update period agreed upon by the parties).
- Finally, the user must choose the update index (in this case, “Own Home”).
With this data, it will be possible to calculate the amount to be paid over the next few months and the percentage increase corresponding to that period. For example, in October 2024, the average rent for a one-bedroom apartment in Buenos Aires City was $524,907, according to Zonaprop. If that tenant had started the contract on October 1, 2024, and opted to update it with the Casa Propia index every six months, they would have to pay $822,536 in April.
To arrive at that number, the following data should be entered into the calculator:
- 524,907 in initial rental value
- 01/10/2024 on the contract start date.
- 01/4/2025 on contract update date.
- Select “6” for how often it updates
- Select Own Home in the update index
This calculation will result in the amount to be paid over the next six months (until September 2025) being $822,536 based on the 56.7% increase established by the Home Ownership Index.
www.buysellba.com
