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Tenants and the first increases after the repeal of the Rental Law: How to calculate the April increase - Infobae
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Los inquilinos y los primeros aumentos luego de la derogación de Ley de Alquileres: cómo calcular la suba de abril
Los contratos con actualización trimestral se adaptan a las nuevas normativas y por inercia inflacionaria se incrementarán con fuerza. Descubre aquí los pasos sencillos para actualizar tu alquiler
www.infobae.com
April 1, 2024
Contracts with quarterly updates are adapted to the new regulations and due to inflationary inertia they will increase strongly. Discover here the simple steps to update your rental
By José Luis Cieri
Tenants and landlords have the ability to calculate rental price adjustments. In April, the first contracts signed for quarterly periods will be updated, after the repeal of the 2020 Rental Law through the corresponding DNU (Illustrative Image Infobae)
After the promulgation of DNU 70/2023, on December 29, which repealed the Rental Law of 2020, a transformation was generated in the rental market in Argentina. This new stage has much more offer and a new way of establishing contracts that are now governed by the Civil and Commercial Code. Starting in April, especially for those who signed pacts after January 8 and opted for quarterly updates, they are expected to adjust their prices based on the contract signing date.
The decree, signed by the President of the Nation Javier Milei and which did not pass the Senate, introduced the possibility for the parties involved in a rental agreement to combine indexes and adjustment periodicities according to their convenience, representing a radical change compared to the previous restrictions that limited these negotiations.
Impact
Given that the agreements are agreed on a quarterly basis (the quarterly ones will be adjusted in May and the semi-annual ones in July), and considering the persistent high inflationary inertia, they are expected to have a strong impact on the pockets of tenants.The updating of rental contracts can be calculated by using online inflation calculators , such as Infobae .
“These digital tools offer a practical way to determine the new amount to pay, entering the current value of the rent and the length of the desired adjustment period. The result reflects not only the increase due to inflation accumulated during that period, but also provides the specific percentage of this increase, thus simplifying the update process," Enrique Abatti , lawyer specialized in real estate law and director of the Chamber , explained to Infobae. of Owners of the Argentine Republic.
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Abatti provided a hypothetical example that illustrates this practice and is based on a contract for an initial rental of 200,000 pesos. Using the inflation indices published by Indec, significant increases can be observed in a quarterly section, starting from 25.5% in December, followed by 20.6% in January and 13.2% in February.
“The successive application of these percentages to the initial rental amount leads to a final adjustment that raises the amount to $342,663, a reflection of economic fluctuations that can now be managed more directly by tenants and owners,” he noted.
However, for both the calculation based on the CPI and the ICL, precise application will not be possible until mid-April, when the inflation data corresponding to March 2024 is released.
Rodolfo Martin Barbieri , a real estate law advisor at the Argentine Real Estate Chamber, said that “the simplest way to calculate the quarter is by multiplying the amount that the tenant was paying by the January index, its result by the February index and then the same. with March, this way the accumulated amount for the first quarter of the year will be known.”
For ICL and for those who must update their quarterly contract, you can visit Infobae , which has a calculator specifically designed for this purpose.
Representative scene of a young couple discussing or evaluating home rental expenses (Illustrative image Infobae)
To use this tool, the following steps must be followed:
- Enter the website.
- Enter the date on which the contract was signed, to know the index at that time.
- Select the contract update date.
- Indicate the initial amount of the contract without points to separate the tens of thousands.
By following these steps, users can get accurate information about rent increases quickly and easily.
Which is more expensive
The CPI is higher than the ICL because the former reflects the Consumer Price Index, an indicator that is used to measure the evolution of the prices of goods and services consumed by families, while the ICL takes into account in equal parts the monthly variations of the Consumer Price Index (CPI) and the Average Taxable Remuneration of Stable Workers (Ripte).“At the end of June, for contracts that are updated quarterly by one index or another, it will be necessary to resort to the same calculation formula, based on the price since April,” Barbieri said.
The ICL is prepared daily by the Central Bank. This organization publishes it around the 15th of each month and leaves it registered in the resolution until the 16th of the following month.
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