Tomorrow, the Consumer Price Index (CPI) for the previous year will be known; This is the key figure that landlords and tenants should keep in mind when defining the relevant increase in pay for 2024.
The increase is based on Article 20 of Law No. 820 of 2003; This clause applies 12 months after the signing of a rental agreement. The determined amount can be increased by the lessor.
Of course, when defining the relevant increase, the lessor should keep in mind that the amount should not exceed 100% of the Consumer Price Index (CPI) figure.
Until November, this figure was 10.15 percent, which formed the basis for the minimum wage debate.
This means that the landlord will have to increase the rental value of his property according to this index, and if it is, for example, 10 percent, You cannot increase more than this percentage.
It should be noted that the inflation figure was known in the first week of January and was provided by the Dane National Administrative Statistics Office.
Note that it is also possible for the landlord to refrain from increasing the rent, or for some leases to agree on a specific increase from the moment they are signed.
If you signed a lease in January 2023 for 2,000,000 pesos and the maximum increase the landlord can make is 10 percent (if that is the inflation figure), the increase will be 200,000 pesos, so monthly payments can be made starting in February 2024. for the tenant it will be 2,200,000 pesos.
It should be taken into account that the rental fee or amount is determined by the tenant. The landlord must be notified of a property’s rent increase along with the date it will take effect. Already He says that some are not waiting for the CPI figure, but for example, the salary adjustment that companies will make so that the homeowner does not feel the impact of the increase before.
Another issue that the landlord should consider before determining the value is how much the monthly rent will be. cannot exceed 1 percent of the commercial value of the property or its leased partAs regulated in Article 18 of Law No. 820 dated 2003.
According to estimates from the Fincaraíz portal, the rent is expected to increase by 9 to 10 percent.
“Inflation has shown a positive downward trend in recent months and is expected to continue its decline in the first quarter of 2024. However, although inflation has improved, it is still high. With the normalization of food prices, the inflation rate is expected to increase in recent months. “The 12 percent increase in the 2024 minimum wage, that is, the CPI, and therefore the rent increase, is between 9 and 10 percent.”
At the end of 2022, the CPI and rent increase was 13.12 percent, meaning that the 2024 figure represents a decrease of approximately 3 points compared to the previous year.
Source: Exame
