1. What is Rental Index Calculation?

The Rental Index Calculation determines the new rent amount after applying a percentage increase based on a rental index (such as RERA or CPI). This helps landlords and tenants understand lawful rent adjustments.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Current Rent — The existing rental amount
• Rental Index Rate — The percentage increase allowed by the index

Explanation: The formula applies the percentage increase to the current rent to calculate the new allowable rent.

3. Importance of Rental Index Calculation

Details: Accurate rent increase calculations ensure compliance with local rental laws and maintain fair relationships between landlords and tenants.

4. Using the Calculator

Tips: Enter current rent in dollars and the rental index rate as a percentage (e.g., enter 3.5 for 3.5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What rental indexes are commonly used?
A: Common indexes include RERA (Real Estate Regulatory Authority), CPI (Consumer Price Index), and local government rental indexes.

Q2: How often can rent be increased?
A: This varies by jurisdiction but is typically once per year or at lease renewal.

Q3: Are there limits to rent increases?
A: Many jurisdictions cap annual rent increases, often tied to official indexes plus a small additional percentage.

Q4: Does this apply to commercial and residential leases?
A: Rules differ between property types - commercial leases often have different regulations than residential.

Q5: What if the calculated increase exceeds local limits?
A: Always verify with local regulations as the legally allowed increase may be lower than the index suggests.