Thanks. So are you saying that if say Dec 23 HICP is -.1% and Dec 24 HICP is +.1%, it is zero, but if Jan 24 is 0% and January 25 is 2% then the increase is 2% ie. it is a direct comparison between when the rent was last set and when it is being reset.It’s possible depending on when rent was last set. The HICP index is lower in November 2024 than any of the three months September to November 2023.
Thanks, will do that.The HICP index is the level of prices in the economy. It is an index number like 118.2.
HICP inflation is the rate of change in the index over time, usually 12 months. It is expressed as a percentage like 1.3%.
The RPZ rent calculator is the percentage change between off the most recent HICP index level and the HICP which applied when you last set the rent. This can be positive or negative, and can be no shorter than 12 months.
The RPZ rent calculator is accurate to my knowledge. I won’t bore you with the reasons but if you wait until January 2025 it will almost certainly produce a positive increase.
It’s very complicated by design. Complain to the politicians who dreamed it up!This seems very complicated.
Agreed, the calculator is easy to use. I just plugged in my current rent and my dates.It’s very complicated by design. Complain to the politicians who dreamed it up!
I am not a big fan of the RTB but their calculator is easy to use and landlords don’t have to think too hard.
It's really up to landlords to run their business properly and in compliance with the relevant governing rules and regulations and to keep abreast of these.It is lack of awareness of this that I am thinking about. I don't think a lot of landlords are aware of the impact of HICP and think the increase is 2%. That your increase may effectively be zero or so small that it is not worth bothering with should be publicised much more by the RTB. Landlords will use 2% and get caught out later.
Indeed it is. But that said, I suspect that many are unaware. I would found it very hard to believe that my increase was 0% when there has been no rent change for 18 months and the rent is already low.It's really up to landlords to run their business properly and in compliance with the relevant governing rules and regulations and to keep abreast of these.
I think alot of landlords just multiply by 2% for one year, 3% for a year and a half etc. when as I found out, the increase may well be 0%! There are serious consequences for overcharging
Since the 2%/HICP came I haven't increased at all - it is not worthwhile. I used the calculator because in another thread it was recommended to me that I take my increases; I was then very surprised when the calculator gave me precisely 0%!I think the vast majority of landlords will be doing this properly. Maybe you need to worry about your own practice rather than others. To serve a valid notice of rent review you must attach a copy of the calculation from the calculator to your notice. It's fairly basic stuff.
What have you been doing?
I don't see how you arrive to 0%. The cap of 2% was put in December 2021. If I put a last rent review in December 2021 in the calculator, I get a 6% authorised increase.Since the 2%/HICP came I haven't increased at all - it is not worthwhile. I used the calculator because in another thread it was recommended to me that I take my increases; I was then very surprised when the calculator gave me precisely 0%!
Well the period I was looking at was October 23 to date & that came in at 0%I don't see how you arrive to 0%. The cap of 2% was put in December 2021. If I put a last rent review in December 2021 in the calculator, I get a 6% authorised increase.
I think so.With this hybrid 2% or HICP, whichever is lower rule, does it not make sense to always hold off on rent increases until there has been a period of "steep inflation" in the previous year that outstrips the cumulative 2% per year?
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