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SymbolicBlogNoticiasThe rise in the highest CPI in the last 13 years may also affect rental contracts

The rise in the highest CPI in the last 13 years may also affect rental contracts

12 Oct
Symbolic Tuesday October 12th, 2021 0

In recent days, there has been a lot of news regarding the unstoppable rise in the Consumer Price Index (CPI),

which will also affect a rise in rents in the rental market in a large number of homes. When can the rental price be raised? We must take into consideration that, according to current legislation, the rent may be updated on the date on which each annuity of the contract is fulfilled. In this way, for those tenants who have signed contracts whose annual expiration dates are close, it is convenient to review the content of their clauses and, depending on the effective date of their contract, the applicable regulations, all in order to know the update mechanism applicable in each case, the most common being the Consumer Price Index (CPI). How will the rent be raised according to the contract?:

In contracts signed as of March 6, 2019. The rent will be updated in accordance with the mechanism expressly agreed by the parties. In the event of the absence of an agreement, no review will be applied. As of this date, the regulations establish a control system for the increase in the rent price, establishing an upper limit of consistent updating, in which the increase produced as a result of the annual review, without prejudice to the mechanism agreed between the parties In the signed contract, it may not exceed, in any case, the result of applying the IPC rate, thus avoiding increases that could be considered abusive.

Contracts signed from January 25, 2019 to March 5, 2019: The rent will be updated in accordance with the mechanism expressly agreed by the parties. In the event of the absence of an agreement, no review will be applied. Contracts signed from December 19, 2018 to January 24, 2019: The rent will be updated in accordance with the mechanism expressly agreed by the parties. In the absence of an agreement, no review will be applied. In the case of “reduced rent” contracts of up to five years, or up to seven years, in the event that the lessor is a legal entity, without prejudice to the agreed review mechanism, the update may not exceed the result of applying the CPI. Contracts signed from April 1, 2015 to December 18, 2018: The rent will be updated in accordance with the mechanism expressly agreed by the parties. In the event of the absence of an agreement, no review will be applied. Contracts signed from June 6, 2013 to March 31, 2015: The rent will be updated in accordance with the mechanism expressly agreed by the parties. In the event of the absence of an agreement, the IPC will be applied. Contracts signed before June 6, 2013: The rent will be updated, during the first five years, in accordance with the CPI. As of the sixth year, the mechanism agreed by the parties is applied and, in the absence of agreement, the CPI will continue to apply. At what point can the rental price be raised? Finally, we must remember that the rent update may be required, solely and exclusively, from the month following the one in which it was communicated. That is, if the update is from October, but the landlord, for whatever reason, communicates it to the tenant in the month of December, the updated rental obligation begins in January, and the arrears that may have been generated cannot be claimed. Example: a tenant signed the lease of his home on October 1, 2020, agreed to a rent of 1200 euros with an update clause in accordance with the IPC, and his landlady, in September, sent him a communication indicating that he wants to update the rent as of October 2021. How much could I update? Initial rent: 1,200 EUR. Updated income: 1,239.60EUR. Variation rate: 3.3%

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