Rent Increases


Jan 2, 2007
I'm interested in people who have long-term rental contracts. If you are paying rent in dollars, did your rent go up the 2nd year? If so, how much?

I know standard if you have a contract in pesos (guarantia, etc) is that the rent goes up 15-20% in the second year. What are people experiencing if they have contracts in dollars?
What I can tell is that offer is growing and many people are moving out due to increased rentals. In sum, there are many new flats entering the market, so speculating I think rental fees will freeze. It's just my opinion.
In the last year, the dollar has increased in value by nearly 25%. I'd say any rent increases were pretty unjustified based on this, and you could probably use the change in exchange rate as leverage.
In the last year, the exchange rate went from 3.68 to about 3.9 as of today.

They are asking for a 10% increase in rent. However coupled with the change in exchange rate, it is really about a 17% increase which seems high to me. But at the same time, I know 20% is standard when you have a contract in pesos so I'm just not sure how much negotiating power I have.
In my experience, BA is getting more expensive in dollar terms - the exchange rate is falling behind local inflation rates.

Do you pay expenses and taxes on top of the dollar rent?
I signed a two-year contract and it dictated that the rent would increase 10% in the second year. It is fixed to a US Dollar amount and I pay the equivalent in pesos.
Popper - thanks, so 10% for you as well.

Sara - I pay apt expenses (cable, internet, electricity) but not building expenses.
Building expenses (gastos comunes) have gone up quite a bit in some buildings, so maybe part of the increase is due to that.

I know people who have rentals, and would like to raise rents 20% to cover their expenses. They are afraid of doing it because right now there are more apartments than renters. It's a renters' market, so you would be in a strong position to negotiate.
Yes, I know the building expenses have gone up quite a bit so that is the reasoning behind it. 10% seems like a fair increase but again, due to the fluctuation of the dollar/peso, it is really a 17% increase which does seem high. However, I really like the apt/owner and I am happy here.

I just am concerned that if the peso continues to drop against the dollar (and I think it will) that 10% plus change may wind up being 20% or more in a year.
The dollar is lagging badly behind inflation. Three years ago the cleaning woman charged US$ 85 - it is now US$145.

I'm a little confused: if your contract is in dollars, why should the exchange rate be a problem?