Rent could increase significantly in March, especially for those tenants who signed contracts under the Lease Contracts Index (ICL). According to recent information, increases could reach up to 149.3%, meaning that a rent of $300,000 could rise to $748,035 starting this month.
One of the most common ways to adjust rents is by using the Consumer Price Index (CPI) as a reference. This index, published monthly by INDEC, is used as a basis for determining rent increases. Specialized tools allow for the automatic calculation of rent increases based on the CPI, making the process easier for landlords and tenants.
With the deregulation of the rental market, new adjustment modalities based on private agreements between landlords and tenants have been created, using the CPI as a reference for quarterly adjustments. This more flexible approach has allowed for increases of 7.3% in March, which could translate into a significant rise, such as a rent of $300,000 rising to $321,885.
Despite the deregulation of the market increasing the supply of rentals, rising inflation continues to pose challenges for many families. As of December 2023, the repeal of the rental law has left the method of contract adjustment to the discretion of the parties. Previously, increases were made annually using the ICL as an indicator, which combined inflation and wages with a two-month lag in data.
