BuySellBA
Administrator
Unstoppable increase: Rental contracts will rise 120% in November and reach 135% in December La Nación Propiedades
Source:
www.lanacion.com.ar
October 30, 2023
The contracts signed under the law passed in 2020 are updated annually by an index prepared by the Central Bank and will increase less than inflation and the departments published on the portals.
Mercedes Soriano
Rental contracts will be adjusted by approximately 120% in November
Inflation also hits rental contracts hard. Tenants who have signed an agreement under the law enacted in 2020 and have to make the annual price update this November will face increases of between 120% and 130% . For example, who in November of last year started paying $88,124 - the average price of a 1-bedroom apartment in the city, according to Zonaprop - will update the fee to pay in the middle of next month to $196,417.
This is because the Lease Contract Index (ICL) published daily by the Central Bank in November will increase between 119.49% and 122.89% in the first 15 days of the month. Estimates indicate that at the end of the month, the index will approach 130% and, in a projection calculation, by mid-December it will reach 135%.
It should be noted that the index in question runs two months behind inflation, since it is made up in equal parts of the advance of inflation and salaries. That is why the November update coefficient is well below the general price increase, which in September had already reached 138.3% year-on-year.
This will be the first update for tenants who began their contract under the law in November 2022, next month they will face their first annual update, while for tenants who signed it in 2021 this would be their second annual adjustment.
In the last 12 months, the offer price of a studio apartment in Capital Federal increased 205.1%, in 1-bedroom apartments the increase was 233.3% and 215.8% in 2-bedroom apartments.
The rental news occurs in an inflationary context that confuses owners when it comes to setting an entry price for tenants. “In the last 12 months, the offer price of a studio apartment in Capital Federal increased 205.1%, in 1-bedroom apartments the increase was 233.3% and 215.8% in 2-bedroom apartments, ” indicates a recent report from the Scalabrini Ortiz Center for Economic and Social Studies.
This uncertainty accentuated by the electoral context caused many real estate agencies to withdraw the published rental offer from the portals after the first round . According to Soledad Balayan, owner of Maure Inmobiliaria, the number of apartments for rent in CABA per search engine compared to last week fell as follows:
The delicate rental situation caused many contracts to be closed between the parties under terms that were outside the law.
For their part, contracts under the law passed in 2020 will maintain annual updates until they end . Taking into account that contracts were signed until days before the sanction of the new law, the regulation of the price indexed to the ICL will last until their completion, that is, until October 2026 .
There are several websites 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:
There are free calculators that allow you to calculate the rent adjustment in a few steps.
These data will help 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 dated when the contract was signed, multiplied by the index of the day on which the increase is applied to it. The value returned by that account will be the amount of rent that the tenant will have to pay during the next year, until the new update.
www.buysellba.com
Source:
Aumento imparable: los contratos de alquiler subirán 120% en noviembre y llegarían a 135% en diciembre
Los contratos firmados bajo la ley sancionada en 2020 se actualizan anualmente por un índice elaborado por el Banco Central y aumentarán menos que la inflación y que los departamentos publicados en los portales
www.lanacion.com.ar
October 30, 2023
The contracts signed under the law passed in 2020 are updated annually by an index prepared by the Central Bank and will increase less than inflation and the departments published on the portals.
Mercedes Soriano
Rental contracts will be adjusted by approximately 120% in November
Inflation also hits rental contracts hard. Tenants who have signed an agreement under the law enacted in 2020 and have to make the annual price update this November will face increases of between 120% and 130% . For example, who in November of last year started paying $88,124 - the average price of a 1-bedroom apartment in the city, according to Zonaprop - will update the fee to pay in the middle of next month to $196,417.
This is because the Lease Contract Index (ICL) published daily by the Central Bank in November will increase between 119.49% and 122.89% in the first 15 days of the month. Estimates indicate that at the end of the month, the index will approach 130% and, in a projection calculation, by mid-December it will reach 135%.
It should be noted that the index in question runs two months behind inflation, since it is made up in equal parts of the advance of inflation and salaries. That is why the November update coefficient is well below the general price increase, which in September had already reached 138.3% year-on-year.
This will be the first update for tenants who began their contract under the law in November 2022, next month they will face their first annual update, while for tenants who signed it in 2021 this would be their second annual adjustment.
In the last 12 months, the offer price of a studio apartment in Capital Federal increased 205.1%, in 1-bedroom apartments the increase was 233.3% and 215.8% in 2-bedroom apartments.
The rental news occurs in an inflationary context that confuses owners when it comes to setting an entry price for tenants. “In the last 12 months, the offer price of a studio apartment in Capital Federal increased 205.1%, in 1-bedroom apartments the increase was 233.3% and 215.8% in 2-bedroom apartments, ” indicates a recent report from the Scalabrini Ortiz Center for Economic and Social Studies.
This uncertainty accentuated by the electoral context caused many real estate agencies to withdraw the published rental offer from the portals after the first round . According to Soledad Balayan, owner of Maure Inmobiliaria, the number of apartments for rent in CABA per search engine compared to last week fell as follows:
- Zonaprop: -8%
- Argenprop: -6%
- Free Market: -13%
- Cabaprop: -44%
The delicate rental situation caused many contracts to be closed between the parties under terms that were outside the law.
How to calculate rent increase
This October, a new rental law was passed that establishes three-year contracts that are updated every six months based on the Casa Propia coefficient . However, the first contracts to be signed under the new standard will have to use the new update methodology only from April 2024, that is, six months after its start.For their part, contracts under the law passed in 2020 will maintain annual updates until they end . Taking into account that contracts were signed until days before the sanction of the new law, the regulation of the price indexed to the ICL will last until their completion, that is, until October 2026 .
There are several websites 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 know the increase in rents: https://vivienda.buenosaires.gob.ar/calculadora_alquiler
- First of all, you must enter the date on which the contract was signed, 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.
There are free calculators that allow you to calculate the rent adjustment in a few steps.
These data will help 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 dated when the contract was signed, multiplied by the index of the day on which the increase is applied to it. The value returned by that account will be the amount of rent that the tenant will have to pay during the next year, until the new update.
www.buysellba.com
