The Rent Law has been repealed, which means that tenants will need to adjust their payments according to the new rules. Many are still governed by the previous regulations, which involve an annual increase based on the Lease Contract Index (ICL). According to the Central Bank, contracts signed in January 2023 under the old law will face a 174.4% increase in January 2025.
This increase, although significant, shows a decreasing trend, with a drop of 15.86% compared to contracts updated in January 2025. Rents are annually adjusted according to the ICL provided by the Central Bank. For example, a contract of $100,000 per month would rise to $274,400 in the coming year.
Those who signed under the Decree of Necessity and Urgency will need to calculate the accumulated inflation of the last months to know the increase in February. Following the repeal, there are contracts with different regulations, with 24-month contracts in pesos with quarterly adjustments being the most common.
Despite the absence of mandatory regulations, the use of the CPI or ICL for adjustments is common. New contracts must be freely agreed upon by the parties, as established by the national government.
