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Easy methods to calculate the rent increase in February 2025 - La Nacion Propiedades
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Los métodos fáciles para calcular el aumento del alquiler en febrero 2025
Según el momento en que se firmó el contrato, se actualizará de forma distinta. Conocé cada uno de los ajustes posibles
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February 03, 2025
Depending on when the contract was signed, it will be updated differently. Learn about each of the possible adjustments
Rentals signed between July 2020 and October 16, 2023 are updated once a year according to an index prepared and published daily by the Central Bank and there are two different ways to find out the new price.shutterstock - Shutterstock
As every month, many tenants and landlords need to calculate the rent increase because they are due for adjustment. These vary depending on whether they were signed with the law passed in 2020, with the same law, but with the modification it had in 2023 or if they were agreed after the repeal of the Rental Law, at which time the game was opened to define between the parties the way in which the value of the contracts is updated.
Leases that have been signed under the 2020 law are adjusted once a year according to the Lease Contract Index prepared by the Central BankFabian Marelli
How to calculate the rent increase in February 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Although President Javier Milei repealed the rental law through the Decree of Necessity and Urgency (DNU) in December 2023 and, with it, opened the game to define the way in which the value of the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, the agreements made under the law sanctioned in July 2020 will maintain the annual updates until they end . The regulation of the price indexed to the ICL will last until the end of these contracts, that is, until October 2026, unless they are extended .
These cases carry out the rental price adjustment once a year during the 36 months that the contract lasts, that is, twice in total . These increases are regulated by the Index for Lease Contracts (ICL), prepared by the Central Bank, which establishes 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 tenants and landlords, since owners must anticipate annual inflation when setting a value when the contract begins 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 designed calculators to find out the increase in rents . One of them is, for example, the Housing Institute of the City or also Arquiler . To consult the index on the second one, the steps are the following:- Visit the Arquiler website, which contains a calculator specifically designed to determine the increase in rents : 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 many months it is updated
- Select the update rate
This data will help calculate the amount to be paid during the next year and the percentage of increase that corresponds to that period. In short, the formula that is applied consists of the total rent divided by the index with the date when the contract was signed, multiplied by the index of the day on which the increase is applied to it. The value that this account yields will be the amount of rent that the tenant must pay during the next year , until the new update.
For example, in February 2024, the average rent for a one-bedroom apartment in the City of Buenos Aires was $416,991, according to Zonaprop. If that tenant had started the contract on February 1, 2024, on February 1, 2025, he or she would have to start paying the updated increase of $1,144,289.
Those who update their rental contract in February based on the Rental Contract Index will pay 174.42% more than the previous year Rent
To arrive at that number, the following data should be entered into the calculator:
- 416,991 in initial rental value
- 01/2/2024 on the start date of the contract
- 01/2/2025 on the date of contract update
- Select “12″ for how often it updates
- Select ICL in update index
This calculation will show that the amount to be paid during the next year (until February 2026) would be $1,144,289 based on the 174.42 % increase established by the ICL at the beginning of February.
The rent adjustment can be calculated with an automatic calculator or manually based on the information published by the Central Bank.Rodrigo Nespolo
With the BCRA website
Another option is to consult the official website of the Central Bank, where the entity updates the index on a daily basis. This option does not have an automatic calculation, but must be done manually by the person following these steps:
- Finding the index: Go to the Central Bank website ( bcra.gob.ar ), go to the “statistics” tab and then “main variables”. At the end of the list, in the last option, there is the item that allows you to see the “Lease Contracts Index”. These steps can be shortened by going directly to the shortcut: https://www.bcra.gob.ar/PublicacionesEstadisticas/Principales_variables.asp and searching for “Lease Contracts Index”.
- Define the index value when the contract started and the current value: the user must select the start dates of the contract and the date on which the amount must be updated. Then, he or she must press the blue “consult” button, which will display a table with the index value for all months of the consulted period. In this table, the first value is the index when the contract started and the last is the current index value.
- To find out how much the rent will increase , the following calculation must be done: take the current index and divide it by the index value from when the contract began. That figure must be multiplied by the rent value and will result in the amount the tenant will have to pay over the next year until it is updated again.
How to calculate the rent increase in February 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 many months the amount to be paid per month will be modified. The contracts that were made since January 2024, with the new rules of the DNU, returning to the Civil and Commercial Code, could be scheduled with the adjustments that were preferred, although the one that prevailed was the update for inflation taking the CPI (Consumer Price Index) with quarterly or four-month periods.With an automatic calculator
There are multiple options for automatic accumulated inflation calculators on the Internet that take the data published by Indec as a reference. One of them is Chequeado, which is the one that 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.
- Where it says “at the beginning of”, enter the month in which the period from which you want to adjust begins. For example, if you wanted to do a quarterly update at the beginning of February, you should consider the period from October to December.
- 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 for a rent of $538,324 started in November 2024 that must be adjusted in February, the latest index published by Indec is for December 2024. In this case, the three-month period from October 2024 to December 2024 will be used. Since the accumulated inflation in that period was 8.03%, the amount to be paid would be $581,540.03 per month.
Rents that are adjusted for inflation will be able to use an automatic cumulative inflation calculator to calculate the updated figure
Manually
In the event that it is decided to adjust manually, it is important to note that the inflation of each month should not be added, but rather the inflation variations of each month should be multiplied and multiplied by these and the rental value, since this is the accumulated inflation of the period.First, you need to know what the inflation rate was for the period for which you want 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. It can also be accessed directly from this link .
- Click the “read report” button.
- On the fourth page of the document, see the second graph “Monthly variations in the general level of the CPI”. There you can see the inflation for each month, with which the rate of variation in the desired period will be calculated.
The inflation of each month should not be added, but the inflation variations of each month should be multiplied and multiplied between these and the rental value.INDEC
Once the data has been located, the steps to create the account are as follows:
- First, you have to calculate the inflation value for each month separately, divided by 100 and adding 1. For example, October's inflation was 2.7% and dividing by 100 gives 0.027 plus 1 gives 1.027. And so on for each of the months that fall within the update period.
- Then you have to multiply the current rental value by those individual inflation values.
- The result will be the new rental value to be paid for the next quarter.
- In other words, the formula would be: rental value x (first month inflation/100 + 1) x (second month inflation/100 + 1) x (third month inflation/100 + 1) = updated rental value.
In a concrete example , if a rental contract was signed on November 1 for $ 538,324 with quarterly adjustment for inflation, this should be adjusted for the first time in February. Since the Indec report is released in the middle of the month, on the first day of February the data for October, November and December would be available, but not yet for January.
The value of the monthly variation in inflation in those months was 2.7% in October, 2.4% in November and 2.7% in December.
After dividing each one by a hundred and adding one, the account would be: 538,324 x 1,027 x 1,024 x 1,027 = $ 581,412.8
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
The result does not always match the calculation made using the automatic calculator ( checado.com ), since the figures published monthly by INDEC are rounded (the number may contain a greater number of decimals that, when considered in the account, may vary between 100 and 300 pesos plus the final result).
In practice, the tenant will be able to know half a month before the adjustment how much the rent will increase. This is because – using this example as a reference – in mid-January he can already know the inflation rate for December and, in this way, he could calculate how much he will have to pay in February. 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, January, would already be available .
How to calculate the rent increase in February according to Casa Propia
Contracts signed under Law 27,737 (in force from October 17, 2023 to December 29, 2023, the date on which Javier Milei's DNU came into force) are updated every six months based on the Casa Propia coefficient . These contracts began to be updated from April 2024, when the first six months had elapsed since they were signed (in the case of those agreed in October).
Since Javier Milei's DNU established that tenant and owner may freely agree on which index to tie the value of the contract to, those signed after the repeal of the rental law can be adjusted according to what is preferred in each case. For those who choose to use the Casa Propia index, there is an online calculator that can speed up the calculations, called arquiler.com . To do the calculation, follow these steps:
- Visit the website arquiler.com , which contains a calculator specifically designed to determine the increase in rents.
- First, you must enter the initial amount that was agreed upon for rent when the contract was signed.
- Then the contract start date must be added.
- Then you must select how often it will be updated (in the case of contracts signed under this law, they are updated every 6 months; in the case that they have been signed after the DNU, you can choose the update period agreed between the parties).
- Finally, the user must choose the update index (in this case, “Casa Propia”).
With this data, it will be possible to calculate the amount to be paid during the next months and the percentage increase that corresponds to that period. For example, in August 2024 the rent for a two-room apartment in the City of Buenos Aires averaged $485,881, according to Zonaprop. If that tenant had started the contract on August 1, 2024, choosing to update it with the Casa Propia index every six months, in February he would have to pay $779,434.
Contracts signed between October 17 and December 29, 2023 are adjusted every six months with the Casa Propia index Rent
To arrive at that number, the following data should be entered into the calculator:
- 485,881 in initial rental value
- 01/08/2024 on the start date of the contract.
- 01/2/2025 on the date of contract update.
- Select “6″ for how often it updates
- Select Own House in update index
This calculation will show that the amount to be paid during the next six months (until July 2025) would be $779,434 based on the 60.42% increase established by the Home Ownership Index.
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