How to figure out fair rental increase

[studiodio]

i have been living in the same little older house in cordoba provence for 7 years and have a good relationship with owner. i have always paid 6months rent, due again in june. i was thinking of a 20% increase being fair, but owner thinks it should be higher. i have tried to look at all the rates of inflation, consumer price indexes ,etc and just get more confused! most rentals listed in my little town are for temporary and so didnt help for comparison...in general, what have you found for percentage increase in your rent? maybe setting rent rate is too individual a negotiation to generalize??

 

[nikad]

Not sure if this will help: I am renting out a 2br/2br apt in Recoleta ( long term ) and my tenant is paying % by IPC every 3 months. This being said, I am not sure if you pay for utilities separately, if it is furnished, etc. The bottom line is that your landlord is getting 6 months at a time and can invest and get some interest as well. You need to ponder that, and maybe see how much demand for rentals you have in the area. If you can easily rent out something similar you can tell him you will move to a different place. YOu need to figure out if your rental has been keeping up with inflation basically, if falling a bit behind it should be fine because you are paying months at a a time. Also, if he is responsive, gets things repaired when due, etc. I use this https://arquiler.com/

 

[LuckyLuke]

Howdy Studio, it's unclear if you are under a contract or not. Are you under a contract with 6 month adjustments or do you have a private unwritten agreement with the owner that they can adjust (whatever you both agree upon) every 6 months?

 

[studiodio]

Not sure if this will help: I am renting out a 2br/2br apt in Recoleta ( long term ) and my tenant is paying % by IPC every 3 months. This being said, I am not sure if you pay for utilities separately, if it is furnished, etc. The bottom line is that your landlord is getting 6 months at a time and can invest and get some interest as well. You need to ponder that, and maybe see how much demand for rentals you have in the area. If you can easily rent out something similar you can tell him you will move to a different place. YOu need to figure out if your rental has been keeping up with inflation basically, if falling a bit behind it should be fine because you are paying months at a a time. Also, if he is responsive, gets things repaired when due, etc. I use this https://arquiler.com/

thanks nikad...and Lucky luke i have a private unwritten contract adjusted every 6 months...it is hard to find rentals in my small town...what i am having trouble with is figuring out the IPC for last 6 months,,,all the web sites i look at only have december and march ..i think .december was 6 % and march went down to 3.4 percent ....can anyone tell more or a link to monthly IPC?

 

[studiodio]

thanks nikad...and Lucky luke i have a private unwritten contract adjusted every 6 months...it is hard to find rentals in my small town...what i am having trouble with is figuring out the IPC for last 6 months,,,all the web sites i look at only have december and march ..i think .december was 6 % and march went down to 3.4 percent ....can anyone tell more or a link to monthly IPC?

so i would need to add around 27 to 30% ???

 

[nikad]

Here are the official numbers https://www.indec.gob.ar/indec/web/Nivel4-Tema-3-5-31

 

[LuckyLuke]

so i would need to add around 27 to 30% ???

Check out https://arquiler.com/

They have a calculator that let's you put in the index (IPC or ICL) you want, the contract start period (your last adjustment date) and the frequency (6 months). It will tell you the new amount and offer you to see the "detalle" of the monthly percentages. That's the good news.

The bad news is that not having a contract which requires that the landlord adhere to the index often means you are exposed to additional "market adjustments" for what they feel the chosen index doesn't correctly reflect. This can be determined by trying to see the general market today, which is even more difficult when there are few available similar units to compare.

Hope that helps.

 

[studiodio]

Check out https://arquiler.com/

They have a calculator that let's you put in the index (IPC or ICL) you want, the contract start period (your last adjustment date) and the frequency (6 months). It will tell you the new amount and offer you to see the "detalle" of the monthly percentages. That's the good news.

The bad news is that not having a contract which requires that the landlord adhere to the index often means you are exposed to additional "market adjustments" for what they feel the chosen index doesn't correctly reflect. This can be determined by trying to see the general market today, which is even more difficult when there are few available similar units to compare.

Hope that helps.

definately helps! thanks so much for your time! this forum has helped me so much over the years,,,especially since i left BA for a small cordoba town as a lone expat

 

[antipodean]

i have been living in the same little older house in cordoba provence for 7 years and have a good relationship with owner. i have always paid 6months rent, due again in june. i was thinking of a 20% increase being fair, but owner thinks it should be higher. i have tried to look at all the rates of inflation, consumer price indexes ,etc and just get more confused! most rentals listed in my little town are for temporary and so didnt help for comparison...in general, what have you found for percentage increase in your rent? maybe setting rent rate is too individual a negotiation to generalize??

Forget indexes.
What was the real value (USD Billete) of what you were paying at the start of contract? Use that as a starting point.
Then see if you can find other properties now with similar characteristics for a similar price or not. (If none or few listings are available in your town, use a basket of similar towns as a reference) That would be fair market value for both parties and tell you if an adjustment upwards or downwards on you starting point is warranted.

On the other hand the “unfair” approach is simply if the owner has someone lined up willing to pay more than you’re willing or able to… and likewise if you’re willing or able to pay more than who would replace you.