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Rents are updated once a year according to an index prepared and published daily by the Central Bank - La Nación
August 31, 2023
Mercedes Soriano
Rents are updated once a year according to an index prepared and published daily by the Central Bank and two different ways of knowing the new price.
www.buysellba.com
August 31, 2023
Mercedes Soriano
Rents are updated once a year according to an index prepared and published daily by the Central Bank
Rents are updated once a year according to an index prepared and published daily by the Central Bank and two different ways of knowing the new price.
In a context in which access to housing is for many more a dream than a reality, tenants face tougher terms and conditions from the Rental Law (27551). The norm sanctioned in July 2020 extended the term of the contracts from two to three years and reformulated the way in which their prices are determined.
Since then, the value of the rentals has been updated once a year during the 36 months that the contract lasts . These increases are regulated by the Index for Rental Contracts (ICL) prepared by the Central Bank, which establishes how much the value of the rental contract must increase in its annual update . Until the enactment of the law, the price was defined when the contract was signed, and the adjustments, in general, were agreed between the parties.
The annual update of the price led to a disadvantageous scenario for the tenant and landlord, since the owners must now anticipate the annual inflation when setting a value when the contract begins and the tenants have to face high sums the first months of the year that are not in line with the current economy.
Below is a month-by-month detail of how much current contracts were updated during the last 12 months, according to the ICL.
September 2022: 64.67%
October 2022: 67.31%
November 2022: 73.12%
December 2022: 77.58%
January 2023: 81.40%
February 2023: 85.88%
March 2023: 92.06%
April 2023: 95.43%
May 2023: 100%
June: 104.05%
July: 109.4%
August: 113.01%
Estimate in mid-September: 114.62%
How to Calculate Rent Increase
With an automatic calculator
There are several web pages that have calculators designed to know the increase in rents . One of them is, for example, that of the City Housing Institute. To consult the index, the steps are as follows:
Enter the website of the City Housing Institute that contains a calculator specifically designed to find out the increase in rents: https://vivienda.buenosaires.gob.ar/calculadora_alquiler
In the first place, the date on which the contract was signed must be placed, to know what the index was at that time.
Then you must select the contract update date.
Finally, the user must indicate the initial amount of the contract without points to separate the tens of thousands.
This data will help to calculate the amount to be paid during the next year and the percentage increase that corresponds to said 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. The value of that account will be the amount of rent that the tenant will have to pay during the next year, until the new update.
For example, a year ago the rent for a two-bedroom apartment in the City of Buenos Aires averaged $79,266, which is the average rental price for a two-bedroom apartment at that time, according to Zonaprop. If that tenant had started the lease on September 1, 2022, on September 1, 2023 he would have to start paying the updated increase of $168,801.28. So, to arrive at that number, the following data would have to be entered into the calculator:
09/01/2022 on the Contract Start Date.
09/01/2023 on the Contract Update Date.
79266 in Initial Contract Amount (write without points or commas to separate hundreds).
This calculation will show that the amount to be paid during the next year (until September 2024) would be $168,801.28 based on the 112.96% increase established by the ICL at the beginning of this month.
With the BCRA website
Another option is to consult the official website of the Central Bank where the entity updates the index every day. This option does not have an automatic calculation but must be done manually by the person following these steps:
Find 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 is the item that allows you to see it "Index of Rental Contracts". These steps can be shortened by going directly to the direct access: https://www.bcra.gob.ar/PublicacionesEstadisticas/Principales_variables.asp
Define the value of the index when the contract began and the current one: the user must select the start dates of the contract and the date on which the amount has to be updated. Then you must press the blue "consult" button that will display a table with the value of the index in all the months of the consulted period. In that table, the first value is the index when the contract started and the last is the value of the index currently.
To know how much the rent will increase, the following calculation must be made: take the current index and divide it by the value of the index when the contract began. That figure must be multiplied by the rental value and will result in the amount that the tenant will have to pay during the next year until it is updated again.
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