Method used to calculate commercial rent increases ?

PaulBee

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Is there a standard method commonly used to calculate commercial rent increases ? I know of one property manager who used some index or something that supposedly roughly reflected actual inflation. Thanks !
 

antipodean

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PaulBee

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I had a property manager who used the index that reflected (more or less accurately I gather) the index of inlation in recent months. I liked that.
My current manager surprised me this week when I learned my new contract has 15% every 6 months. I hadn´t heard about it, until after it had been agreed to.
 

PaulBee

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Often they refer to Indec CPI
https://www.indec.gob.ar/indec/web/Nivel4-Tema-3-5-31 (generally “objective” however if the owner was traumatized by the pre-2015 era, they may prefer to have a predetermined amount stated in the contract like 20-25% every 6 months, if the rent is not dollarized)

Residential rental agreements since OCT 2020 are based on ICL and there is a calculator here:

My rent is in ARS.
 

PaulBee

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Mine went up 46% according to the index. I'd take 30% a year...
I am the owner. The property is already priced very very low for what it is. I would not have agreed to the deal if I had known it was going to be for more than one year. Now, with 30%/year, I will be getting even less over time. Next time I will ask for details.
 

jblaze5779

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I am the owner. The property is already priced very very low for what it is. I would not have agreed to the deal if I had known it was going to be for more than one year. Now, with 30%/year, I will be getting even less over time. Next time I will ask for details.

Not good for you that's for sure!
 
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