Apartment Rental Rent: This calculator tells you how much your rent will increase based on the index you signed the contract with - La Nacion Propiedades

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Rent: This calculator tells you how much your rent will increase based on the index you signed the contract with - La Nacion Propiedades




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Alquileres: esta calculadora te anticipa cuánto te aumentará el alquiler según el índice con el que cerraste el contrato

A partir de la derogación de la ley de alquileres, los contratos se acuerdan entre inquilinos y propietarios, quienes deben ponerse de acuerdo en cómo se harán los ajustes; una herramienta permite calcular el aumento en cada caso

www.lanacion.com.ar

March 04, 2025


Since the repeal of the rental law, contracts are agreed between tenants and landlords, who must agree on how the adjustments will be made; a tool allows the increase to be calculated in each case.



By Candela Contreras

A calculator tells you how much the rent will increase based on the index at which you closed the contract. Freepik

On December 29, 2023, when Javier Milei's Decree of Necessity and Urgency (DNU) came into force, the rental law was repealed and with it , rental contracts were once again governed by the Civil and Commercial Code with some modifications , as was the case before June 2020, when the controversial law was passed. From this point on, the way in which new agreements are signed is established by agreement between the parties .

This means they can negotiate the length of the contracts: there is no legal minimum term, but if they don't clarify it, it will be two years. Another change is that rent adjustments can be agreed upon , and any index , public or private, expressed in the same currency as the contract was agreed upon is valid. The frequency with which these adjustments will be made must also be agreed upon; the usual frequency is quarterly or four-monthly.

Contracts signed before the repeal of the regulations will continue with the rates established at the time of the agreement. CrizzyStudio - Shutterstock

Possible indices to consider in a rental contract​

Within the variety of existing public indices that could be applied to lease contracts, there are several options, some developed by INDEC (National Institute of Statistics and Census) and others by the Central Bank (BCRA). Below is a list of the weights for each:

Those from INDEC​

• CPI (Consumer Price Index): measures the price variation of goods and services representative of household consumption expenditure compared to prices in effect in the base year. Real estate brokers agree that the landlord's objective with the update is to avoid losing out on inflation . "Today, they prefer pesos adjusted quarterly by the CPI, and the tenant is accepting this without any conflict between the parties," adds Daniel Salaya Romera, owner of the real estate agency of the same name.
• Wage Index: This index measures monthly wage variations in both the public and private sectors. "This index could be used as a good indicator because, in the long term, even though we're currently at a very low wage level, on average, wages and inflation go hand in hand, and at some point they'll have to recover," says Federico Gonzalez Rouco, an economist at the consulting firm Empiria.

Those from the BCRA​

• ICL (Lease Contract Index): This index measures inflation (based on the National Institute of Statistics and CPI) and wages, based on the average remuneration of permanent workers (RIPTE). It is used to calculate contract increases under the rental law passed in 2020. “As with the Casa Propia index (used as an indicator for increases in the updated law starting in October 2023), I don't think it will be used because it has a very bad reputation following the repeal of the regulations and is below inflation and market prices,” says González Rouco.
• Reference Stabilization Coefficient (BCRA) : This is a daily measurement based on inflation. "UVA, inflation, and CER don't differ significantly from one another," adds González Rouco.
• UVA (Purchasing Power Unit) : In this case, the calculation is simpler, "because if the contract is valued at, for example, 1,000 UVA, each time there is an increase it will be on 1,000 UVA; you just have to see how much it increased in that period. I don't think it's a minor variable because ease of calculation is very important in this context," explains the economist.

However, calculating the rent adjustment according to each of these indexes can be time-consuming . However, there is a website that functions as a virtual calculator that allows you to find out how much each contract is adjusted by depending on the index used .

How to calculate the rent adjustment for each index​

To simplify the calculation of each index , a site has been available since 2020 to quickly and easily calculate the adjustment amount for lease contracts . "The idea for the platform arose from the difficulty of performing calculations for anyone unfamiliar with the data for each index," says Juan Martín Pagella, founder of Arquiler .

Arquiler is a rental calculator that emerged from the idea of having a tool at hand to facilitate the calculation of lease updates.

"The veracity of the results can be corroborated because we use all official publications when each index is published."

Juan Martín Pagella, creator of the Arquiler platform​

The data sources used are: ANSES (National Institute of Statistics and Census) to calculate the CPI; the BCRA (Argentine National Statistics Institute) for the ICL (Income and Earned Income) and the CER (Certified Consumer Price Index); the Argentine Chamber of Construction for the CAC Index; and the Secretariat of Territorial Development, Habitat, and Housing for Home Ownership. According to the data provided by the platform, the most commonly used indexes today are the ICL (contracts still in force under the repealed law) and the CPI.



In addition to calculating rent, the website added a " guarantee quote " feature a few months ago, which allows you to calculate the amount of the rental guarantee required for each new contract.

After the repeal of the law, there are many contracts signed for the index update with CPI.

How to calculate the contract increase according to the discount rate​

• Visit the website https://arquiler.com/ , which contains a calculator specifically designed to understand rent increases.
• First, the initial rental value must be entered.
• Then you must select the start date of the contract.
• Afterwards, every few months the contract is updated.
• Finally, select the index by which the rent is updated: ICL, CPI, CasaPropia, CAC, CER, IS, or IPIM.

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