Rent your home to mitigate the January cost and the

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Consumer prices remain higher than the target. According to the National Institute of Statistics (INE), in November the general CPI registered 3.2% , three tenths less than the previous month but higher than in, for example, June, July and August. Furthermore, a cap on rent increases removes the CPI for a while as an index for updating rents. Inflation is not yet controlled: will owners be able to adjust their rent to the CPI to alleviate the January cost?

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The latest value of the CPI in November predicts a higher slope in January
The price of goods and services remains higher than normal. Already far from that 10.8% that the CPI marked in July 2022, the November value (3.2%) still predicts an uphill Christmas.

Those who have not set savings goals during the year, something difficult considering the price increases , will see that extraordinary expenses at Christmas will weigh more than other years.

Landlords who until now had annually adjusted their Saudi Arabia Phone Number List rents to the CPI will find themselves with a measure that begins on January 1: the 3% cap. But is it still profitable to rent an apartment ?

Recommended reading:   Forecast increase in the rental CPI in 2024
What is the 3% rent cap for 2024 and how does it work?
From January 1 to December 31, 2024, the new cap on rent updates will be in force , which sets a limit at 3%.

If you are a large tenant , the update will be the one you agree with your tenant, without this being able to exceed 3% in any case.
If you are not a big tenant , the update will be the one you agree with your tenant. In the absence of an agreement, this may not be higher than 3%.
A large holder is the owner of 10 or more homes or an area of ​​more than 1,500 m2 (not counting garages and storage rooms).

Only rentals with housing use contracts can be updated . Rentals of premises or others for use other than housing are therefore excluded.



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Will landlords be able to adjust rents based on the CPI in 2024?
The notice period to raise the rent is one month. Landlords who are going to update their rents in January must notify their tenants now and use the latest available CPI.

Taking into account that the CPI for November (3.2%) is above the ceiling, for the moment these owners will have to do so at 3% and, therefore, slightly below real inflation.

However, renting is still very profitable : rental prices continue to rise in a similar way throughout the territory and offer good returns. Of course, much more than having an empty apartment.