How much can I raise the rent of my apartment in 2024?

We have just welcomed 2024, a year that promises to be significant for the real estate sector. At KM2 Real Estate Services we will be alert to any important developments. Now, we can already advance to owners of rental properties that there are changes in the rent update.

The 3% cap on rent increases begins

In February 2023, we published an article on the extension of the 2% cap on rent increases, a measure implemented under the Housing Act. Back then, we noted that, by 2024, a new 3% cap would be in place.

How does it affect large and small tenants?

The impact of this regulation changes depending on the profile of the owner.

• Large tenants: those who own more than 10 properties cannot increase the rent by more than 3%. This restriction is maintained even if there is an agreement between tenant and landlord.

• Small tenants: those who own less than 10 properties may exceed the 3% cap if they reach a consensus with the tenant.

Not all leases are subject to the 3% cap

The 3% cap applies to residential lease agreements during each term year from January 1, 2023 through December 31, 2024. Excluded from this rule are:

• Leases for other uses such as commercial premises, offices or industrial buildings.
• Temporary or vacation agreements.

It is crucial to check what the rent update clause in the contract specifies. If the Consumer Price Index (CPI) is mentioned, the latest data published by the National Statistics Institute (INE) at the time it is communicated to the tenant will be used, without ever exceeding 3%.

What happens if the conditions admit updates, but do not indicate a specific index?

• It must be referenced to the CPI, as established in the Urban Leases Law (LAU).

In the most recent contracts that do not contain a rent update clause, the rent cannot be increased under any circumstances.

How to calculate the increase with the new index?

To determine the new rent amount after the annual increase, this formula can be used:

• Current monthly rent x 1.03.

For example:

1. If the rent is €600.00, the new installment can be up to 618.00 €.
2. For a rent of 750.00 €, the amount could be 772.50 €.
3. For a rent of 1.000,00 €, it would be up to 1.030,00 €.

Manage your rent with KM2 Real Estate Services

In KM2 Real Estate Services we are aware that the constant novelties can condition the management of the properties by the owners.

That is why, besides keeping you always informed, we want to help you from start to finish, advising you and taking care of all the required steps.

Our sales department will develop a strategic marketing plan to optimize the price and reduce the marketing period.

Do not hesitate to contact one of our agents for more information or visit us at any of our real estate agencies in Barcelona and Madrid. We are waiting for you at:

• Rambla Cataluña 60, 5º2ª, Barcelona.
• C. Serrano, 51, 4ª Pl. Right, Madrid.