How much can I increase the rent of my home?

EDITING |

The rent is not subject to annual update unless expressly agreed by the parties in the rental contract. However, it is common for such an update clause to be included in the contract.

In that case, since the approval of Royal Decree-Law 7/2019, of March 1, on urgent measures in housing and rental, this update will have as a limit the variation of the CPI for that period. Article 18.1 LAU.

If we agree on the update, what should we take into account?:

1. When is it applied? The rent can only be updated by the landlord or the tenant, under the terms agreed by the parties, on the date each year when the contract is in effect.
2. How do I calculate the update? The parties may agree on the methodology for updating the rent. If they do not, the rent will be updated for each year according to the annual variation of the Competitiveness Guarantee Index as of the date of each update. To calculate this variation, the month of reference will be the last index that was published. In any case, whether applying this index or the one agreed upon by the parties, this variation can never exceed the variation of the CPI.
3. Example: I signed a rental contract in January 2020, with a rent of 600 Euros, agreeing to the annual rent update. On the renewal date, I will pay 600 Euros, with a variation rate of 0.5%

You can calculate this CPI limit at the following link: https://www.ine.es/calcula/