4 simple steps to know how to update rental

Updating your income can always cause some headaches. And, although the Urban Leasing Law (LAU) does not require an simple steps increase in the rental price in relation to the CPI, this index is the most used. Therefore, below we explain step by step how to update the rental income with the CPI. Rent your apartment and forget about worries 0% late payment. We take charge if the tenant does not pay. proceeding with the step-by-step explanation, let’s briefly review what CPI is. In essence, the acronym CPI corresponds to the Consumer Price Index , the indicator that evaluates how much the prices of a nation’s consumer goods increase. During 2022, the different events that have taken place both in Spain and in other places in the world have had an impact on the CPI, causing very extreme increases in the index.

How to update rental income with the CPI between

If the update of your lease occurs between you will not have to apply the corresponding CPI. The reason? After the increase in the index during, the Government approved the emergency measure to decouple the CPI from the update of the rental contract. If the contract Greece Telegram Number Data is updated before or after this period of time, the CPI would apply again. Steps to calculate the rental CPI in 2022 As complex as it may seem, updating the rental income with the CPI is a piece of cake if you follow the steps listed below: Check when you should update the rental price with the CPI. You must communicate the increase in the rent CPI to the tenant. Proceed with updating the quota with the CPI of the indicated date.

How to update a rental income with the CPI?

The process of updating income with the CPI requires a basic formula that, once we fill in the specific data, will give us the new monthly amount. Let’s see what it is: (Rental income x (100 + %CPI)) / 100 Next, if we apply it to an example of updating the rental income , we will see how it works. Let’s say Iran Telegram Number List your rent is €800. After searching the INE website, you find that the CPI two months ago increased by 6.8%. Therefore, the calculation would look like this:Finally, the result shows that updating the rent of €800 with the CPI of 6.8% would leave a new monthly payment of €854.4 . If you want to know more about how the CPI is applied when renting your home, we will tell you everything in our guide.